90,897 DigitalOcean Holdings, Inc. $DOCN Shares Acquired by Allspring Global Investments Holdings LLC

Key Points

• Allspring increased its DigitalOcean stake by 18.6% in the third quarter, buying 90,897 shares and bringing its holdings to 580,462 shares, valued at about $81.1 million.
• DigitalOcean reported quarterly EPS of $0.45, above the $0.32 estimate, and revenue of $321.2 million, up 39.6% year over year and ahead of expectations.
• Analysts’ consensus rating is “Moderate Buy”, with an average price target of $141.06; several firms lowered their targets while maintaining Buy or Overweight ratings.

Allspring Global Investments Holdings LLC increased its holdings in DigitalOcean Holdings, Inc. (NYSE:DOCN - Free Report) by 18.6% in the third quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 580,462 shares of the company's stock after buying an additional 90,897 shares during the period. Allspring Global Investments Holdings LLC owned about 0.56% of DigitalOcean worth $81,149,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds have also recently made changes to their positions in the company. Ausbil Investment Management Ltd purchased a new position in DigitalOcean in the third quarter worth $3,401,000. Danske Bank A S acquired a new position in shares of DigitalOcean during the second quarter worth $1,488,000. Wealth High Governance Asset Management Ltda. acquired a new position in shares of DigitalOcean during the first quarter worth $8,986,000. Assenagon Asset Management S.A. lifted its holdings in shares of DigitalOcean by 956.0% during the 3rd quarter. Assenagon Asset Management S.A. now owns 150,248 shares of the company's stock valued at $20,042,000 after purchasing an additional 136,020 shares during the last quarter. Finally, Norris Financial Group LLC purchased a new stake in shares of DigitalOcean during the 1st quarter valued at $7,234,000. 49.77% of the stock is currently owned by hedge funds and other institutional investors.

DigitalOcean Stock Performance

Shares of DOCN opened at $78.19 on Tuesday. The company has a debt-to-equity ratio of 0.61, a quick ratio of 1.31 and a current ratio of 1.15. The stock has a 50-day moving average of $115.69 and a two-hundred day moving average of $111.81. The stock has a market cap of $9.23 billion, a P/E ratio of 252.23, a P/E/G ratio of 73.25 and a beta of 1.69. DigitalOcean Holdings, Inc. has a one year low of $41.96 and a one year high of $187.50.

DigitalOcean (NYSE:DOCN - Get Free Report) last announced its quarterly earnings data on Tuesday, November 3rd. The company reported $0.45 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.32 by $0.13. DigitalOcean had a return on equity of 15.01% and a net margin of 3.11%. The firm had revenue of $321.19 million during the quarter, compared to analysts' expectations of $306.74 million. During the same period last year, the business posted $0.54 earnings per share. The company's revenue for the quarter was up 39.6% compared to the same quarter last year. As a group, research analysts predict that DigitalOcean Holdings, Inc. will post 0.65 EPS for the current year.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on DOCN shares. The Goldman Sachs Group lowered their price objective on DigitalOcean from $178.00 to $156.00 and set a "buy" rating for the company in a research report on Thursday, November 5th. Stifel Nicolaus set a $130.00 price target on DigitalOcean in a research note on Tuesday, November 3rd. Citigroup lowered their price target on DigitalOcean from $190.00 to $160.00 and set a "buy" rating for the company in a report on Wednesday, November 4th. Morgan Stanley dropped their price target on DigitalOcean from $175.00 to $150.00 and set an "overweight" rating on the stock in a research note on Wednesday, November 4th. Finally, Canaccord Genuity Group cut their price objective on shares of DigitalOcean from $200.00 to $180.00 and set a "buy" rating on the stock in a report on Wednesday, November 4th. Two research analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $141.06.

Insider Buying and Selling at DigitalOcean

In other DigitalOcean news, CFO Matt Steinfort sold 10,000 shares of the stock in a transaction dated Thursday, September 3rd. The stock was sold at an average price of $105.73, for a total transaction of $1,057,300.00. Following the sale, the chief financial officer directly owned 503,692 shares of the company's stock, valued at approximately $53,255,355.16. This trade represents a 1.95% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CAO Cherie Barrett sold 4,456 shares of DigitalOcean stock in a transaction dated Thursday, August 13th. The shares were sold at an average price of $132.37, for a total value of $589,840.72. Following the transaction, the chief accounting officer owned 65,487 shares of the company's stock, valued at $8,668,514.19. The trade was a 6.37% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 18,441 shares of company stock valued at $2,068,475. 0.96% of the stock is currently owned by corporate insiders.

About DigitalOcean

DigitalOcean Holdings, Inc provides cloud computing services designed primarily for developers, startups, and small and midsize businesses. Founded in 2011, the company focuses on making it easier for customers to build, deploy, and scale applications without managing their own physical infrastructure.

Its platform includes virtual machines known as Droplets, managed Kubernetes, an application platform, managed databases, object storage, and networking and monitoring tools. These services support tasks ranging from hosting websites and applications to developing and running cloud-native software.

DigitalOcean serves customers around the world through its cloud platform and data center infrastructure.

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