Trexquant Investment LP Invests $1.04 Million in DigitalOcean Holdings, Inc. $DOCN

Key Points

• Trexquant Investment LP acquired 31,179 shares of DigitalOcean Holdings, Inc. valued at approximately $1,041,000 in the first quarter.
• DigitalOcean had a strong quarterly performance with a reported earnings per share of $0.59, surpassing analysts' expectations of $0.47.
• Several brokerages have raised their price targets for DigitalOcean, with Barclays setting a new price objective of $40.00 and maintaining an "overweight" rating.

Trexquant Investment LP bought a new stake in DigitalOcean Holdings, Inc. (NYSE:DOCN - Free Report) in the 1st quarter, according to its most recent filing with the Securities and Exchange Commission. The firm bought 31,179 shares of the company's stock, valued at approximately $1,041,000.

Other hedge funds have also bought and sold shares of the company. GAMMA Investing LLC lifted its stake in DigitalOcean by 336.1% in the 1st quarter. GAMMA Investing LLC now owns 1,064 shares of the company's stock valued at $36,000 after purchasing an additional 820 shares during the last quarter. Farther Finance Advisors LLC lifted its stake in DigitalOcean by 135,100.0% in the 1st quarter. Farther Finance Advisors LLC now owns 1,352 shares of the company's stock valued at $46,000 after purchasing an additional 1,351 shares during the last quarter. SVB Wealth LLC acquired a new stake in DigitalOcean in the 1st quarter valued at about $48,000. Covestor Ltd lifted its stake in DigitalOcean by 35.8% in the 1st quarter. Covestor Ltd now owns 3,182 shares of the company's stock valued at $106,000 after purchasing an additional 838 shares during the last quarter. Finally, Cerity Partners LLC acquired a new stake in DigitalOcean in the 1st quarter valued at about $223,000. 49.77% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity at DigitalOcean

In other news, insider Bratin Saha sold 13,010 shares of the firm's stock in a transaction that occurred on Wednesday, September 3rd. The shares were sold at an average price of $31.87, for a total transaction of $414,628.70. Following the transaction, the insider directly owned 269,465 shares of the company's stock, valued at approximately $8,587,849.55. This trade represents a 4.61% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Corporate insiders own 0.96% of the company's stock.

Analyst Ratings Changes

Several brokerages recently issued reports on DOCN. Wall Street Zen upgraded shares of DigitalOcean from a "hold" rating to a "buy" rating in a research note on Sunday, June 29th. Barclays raised their target price on shares of DigitalOcean from $38.00 to $40.00 and gave the company an "overweight" rating in a research note on Wednesday, August 6th. Morgan Stanley raised their price objective on shares of DigitalOcean from $41.00 to $44.00 and gave the stock an "overweight" rating in a research report on Wednesday, August 6th. Stifel Nicolaus set a $36.00 price objective on shares of DigitalOcean in a research report on Tuesday, August 5th. Finally, Canaccord Genuity Group raised their price objective on shares of DigitalOcean from $45.00 to $49.00 and gave the stock a "buy" rating in a research report on Wednesday, August 6th. Six analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $41.45.

DigitalOcean Trading Down 2.5%

DOCN stock traded down $0.91 during mid-day trading on Friday, hitting $35.65. 2,987,013 shares of the company were exchanged, compared to its average volume of 2,024,475. The business has a 50 day simple moving average of $30.83 and a 200-day simple moving average of $31.15. The stock has a market capitalization of $3.25 billion, a PE ratio of 27.42, a price-to-earnings-growth ratio of 2.08 and a beta of 1.77. DigitalOcean Holdings, Inc. has a 1-year low of $25.45 and a 1-year high of $47.02.

DigitalOcean (NYSE:DOCN - Get Free Report) last announced its earnings results on Tuesday, August 5th. The company reported $0.59 EPS for the quarter, topping the consensus estimate of $0.47 by $0.12. DigitalOcean had a net margin of 15.18% and a negative return on equity of 73.19%. The company had revenue of $218.70 million for the quarter, compared to analysts' expectations of $216.62 million. During the same period last year, the firm earned $0.48 earnings per share. The business's revenue for the quarter was up 13.6% on a year-over-year basis. DigitalOcean has set its FY 2025 guidance at 2.050-2.100 EPS. Q3 2025 guidance at 0.450-0.500 EPS. Equities research analysts expect that DigitalOcean Holdings, Inc. will post 1.01 earnings per share for the current year.

About DigitalOcean

DigitalOcean Holdings, Inc, through its subsidiaries, operates a cloud computing platform in North America, Europe, Asia, and internationally. The company's platform provides on-demand infrastructure and platform tools for developers, start-ups, and small and growing digital businesses. It also offers infrastructure-as-a-service (IaaS) solutions comprising compute and storage services, as well as networking projects, including Cloud Firewalls software, Managed Load Balancers software, and Virtual Private Cloud (VPC).