91,535 Shares in DigitalOcean Holdings, Inc. $DOCN Bought by Osterweis Capital Management Inc.

Key Points

• Osterweis Capital Management bought 91,535 DigitalOcean shares worth approximately $14.4 million, giving it a 0.09% stake. Institutional investors collectively own 49.77% of the company.
• DigitalOcean reported quarterly EPS of $0.45, exceeding estimates of $0.26, while revenue rose 28.6% year over year to $281.18 million. Shares opened at $111.53, down 3.6%.
• Analysts maintain a generally positive view, with the stock carrying an average “Buy” rating and a consensus price target of $151.33, though some firms recently reduced their targets. Insiders have sold 18,656 shares worth $2.81 million over the past 90 days.

Osterweis Capital Management Inc. bought a new position in shares of DigitalOcean Holdings, Inc. (NYSE:DOCN - Free Report) in the second quarter, according to the company in its most recent filing with the SEC. The institutional investor bought 91,535 shares of the company's stock, valued at approximately $14,374,000. Osterweis Capital Management Inc. owned approximately 0.09% of DigitalOcean at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also recently modified their holdings of the company. Fuller & Thaler Asset Management Inc. boosted its position in shares of DigitalOcean by 11.6% during the fourth quarter. Fuller & Thaler Asset Management Inc. now owns 2,420,341 shares of the company's stock worth $116,467,000 after buying an additional 252,303 shares during the period. Lazard Asset Management LLC lifted its position in shares of DigitalOcean by 34.5% in the second quarter. Lazard Asset Management LLC now owns 1,660,731 shares of the company's stock worth $47,430,000 after purchasing an additional 426,264 shares in the last quarter. Van Berkom & Associates Inc. lifted its position in shares of DigitalOcean by 2.9% in the fourth quarter. Van Berkom & Associates Inc. now owns 1,610,671 shares of the company's stock worth $77,505,000 after purchasing an additional 45,680 shares in the last quarter. First Trust Advisors LP lifted its position in shares of DigitalOcean by 9.3% in the first quarter. First Trust Advisors LP now owns 1,441,151 shares of the company's stock worth $123,622,000 after purchasing an additional 122,675 shares in the last quarter. Finally, Dimensional Fund Advisors LP boosted its holdings in DigitalOcean by 2.4% during the fourth quarter. Dimensional Fund Advisors LP now owns 1,359,695 shares of the company's stock worth $65,432,000 after purchasing an additional 31,682 shares during the last quarter. Institutional investors and hedge funds own 49.77% of the company's stock.

DigitalOcean Trading Down 3.6%

Shares of DOCN stock opened at $111.53 on Tuesday. DigitalOcean Holdings, Inc. has a 12-month low of $30.36 and a 12-month high of $187.50. The company has a market capitalization of $11.64 billion, a PE ratio of 50.93, a price-to-earnings-growth ratio of 98.99 and a beta of 1.61. The firm has a 50 day moving average price of $133.48 and a two-hundred day moving average price of $114.23. The company has a quick ratio of 1.31, a current ratio of 1.31 and a debt-to-equity ratio of 1.14.

DigitalOcean (NYSE:DOCN - Get Free Report) last posted its earnings results on Tuesday, August 4th. The company reported $0.45 EPS for the quarter, beating the consensus estimate of $0.26 by $0.19. The company had revenue of $281.18 million for the quarter, compared to the consensus estimate of $279.03 million. DigitalOcean had a return on equity of 31.01% and a net margin of 23.26%.The firm's revenue for the quarter was up 28.6% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.39 earnings per share. DigitalOcean has set its FY 2026 guidance at 1.350-1.400 EPS and its Q3 2026 guidance at 0.280-0.300 EPS. As a group, analysts predict that DigitalOcean Holdings, Inc. will post 0.63 earnings per share for the current year.

Analyst Upgrades and Downgrades

DOCN has been the topic of several recent research reports. Morgan Stanley lifted their price target on shares of DigitalOcean from $75.00 to $175.00 and gave the company an "overweight" rating in a research note on Wednesday, May 6th. UBS Group decreased their price objective on DigitalOcean from $155.00 to $140.00 and set a "neutral" rating for the company in a report on Wednesday, August 5th. Canaccord Genuity Group reaffirmed a "buy" rating and issued a $200.00 target price on shares of DigitalOcean in a research report on Friday, July 10th. Weiss Ratings upgraded DigitalOcean from a "hold (c+)" rating to a "buy (b-)" rating in a report on Tuesday, August 11th. Finally, William Blair reiterated an "outperform" rating on shares of DigitalOcean in a report on Wednesday, July 15th. Two equities research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Buy" and an average target price of $151.33.

Insider Buying and Selling at DigitalOcean

In other news, Director Warren J. Adelman sold 4,200 shares of DigitalOcean stock in a transaction on Friday, August 7th. The stock was sold at an average price of $124.01, for a total transaction of $520,842.00. Following the completion of the sale, the director owned 67,433 shares of the company's stock, valued at approximately $8,362,366.33. This trade represents a 5.86% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CAO Cherie Barrett sold 4,456 shares of the business's stock in a transaction dated Thursday, August 13th. The shares were sold at an average price of $132.37, for a total transaction of $589,840.72. Following the completion of the sale, the chief accounting officer directly owned 65,487 shares of the company's stock, valued at approximately $8,668,514.19. The trade was a 6.37% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 18,656 shares of company stock valued at $2,811,383 in the last ninety days. 0.96% of the stock is currently owned by corporate insiders.

DigitalOcean Company Profile

DigitalOcean Holdings, Inc is a cloud infrastructure provider that focuses on simplicity, performance and developer experience. The company offers a range of cloud services designed to help software developers, startups and small- to medium-sized businesses deploy, manage and scale applications. Its flagship offering, Droplets, provides virtual private servers that can be configured with various CPU, memory and storage options. In addition to compute instances, DigitalOcean's platform includes managed Kubernetes, scalable object and block storage, managed databases, load balancers and networking capabilities such as Virtual Private Cloud (VPC) and Floating IPs.

Founded in 2011 and headquartered in New York City, DigitalOcean was created with the goal of making cloud computing more accessible to individual developers and smaller teams.

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