AlphaCore Capital LLC Invests $582,000 in DigitalOcean Holdings, Inc. $DOCN

Key Points

• AlphaCore Capital opened a new position in DigitalOcean, buying 12,095 shares worth about $582,000 in the fourth quarter.
• DigitalOcean’s latest earnings beat expectations, reporting $0.44 EPS versus a $0.27 estimate, with revenue of $257.91 million and 22.4% year-over-year growth.
• Analyst sentiment is generally positive, with Goldman Sachs and Barclays sharply raising price targets; the stock now carries a Moderate Buy consensus target of $142.23.

AlphaCore Capital LLC acquired a new position in shares of DigitalOcean Holdings, Inc. (NYSE:DOCN - Free Report) in the fourth quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund acquired 12,095 shares of the company's stock, valued at approximately $582,000.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Allworth Financial LP grew its stake in shares of DigitalOcean by 54.4% during the third quarter. Allworth Financial LP now owns 724 shares of the company's stock worth $25,000 after purchasing an additional 255 shares in the last quarter. NBC Securities Inc. acquired a new position in shares of DigitalOcean during the fourth quarter worth $32,000. Wilmington Savings Fund Society FSB acquired a new position in shares of DigitalOcean during the third quarter worth $37,000. Advisory Services Network LLC acquired a new position in shares of DigitalOcean during the third quarter worth $54,000. Finally, GAMMA Investing LLC boosted its holdings in DigitalOcean by 33.8% in the fourth quarter. GAMMA Investing LLC now owns 1,581 shares of the company's stock valued at $76,000 after purchasing an additional 399 shares in the last quarter. Institutional investors and hedge funds own 49.77% of the company's stock.

DigitalOcean Price Performance

Shares of DOCN opened at $150.01 on Wednesday. DigitalOcean Holdings, Inc. has a fifty-two week low of $25.56 and a fifty-two week high of $164.77. The company has a market capitalization of $15.66 billion, a price-to-earnings ratio of 65.51 and a beta of 1.42. The firm has a 50-day simple moving average of $99.72 and a 200-day simple moving average of $68.82. The company has a debt-to-equity ratio of 0.92, a quick ratio of 1.46 and a current ratio of 1.46.

DigitalOcean (NYSE:DOCN - Get Free Report) last announced its earnings results on Tuesday, May 5th. The company reported $0.44 earnings per share for the quarter, topping the consensus estimate of $0.27 by $0.17. DigitalOcean had a net margin of 24.97% and a return on equity of 88.86%. The business had revenue of $257.91 million during the quarter, compared to the consensus estimate of $249.76 million. During the same quarter in the prior year, the firm earned $0.56 earnings per share. The business's quarterly revenue was up 22.4% compared to the same quarter last year. DigitalOcean has set its Q2 2026 guidance at 0.200-0.230 EPS and its FY 2026 guidance at 1.100-1.200 EPS. On average, equities research analysts anticipate that DigitalOcean Holdings, Inc. will post 0.55 earnings per share for the current year.

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on DOCN shares. The Goldman Sachs Group upped their price target on DigitalOcean from $78.00 to $179.00 and gave the company a "buy" rating in a report on Wednesday, May 6th. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of DigitalOcean in a report on Friday, March 27th. Bank of America upped their price target on DigitalOcean from $103.00 to $107.00 and gave the company a "buy" rating in a report on Thursday, April 9th. Barclays upped their price target on DigitalOcean from $105.00 to $183.00 and gave the company an "overweight" rating in a report on Wednesday, May 6th. Finally, Stifel Nicolaus set a $57.00 price objective on shares of DigitalOcean in a research note on Tuesday, February 24th. Nine investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, DigitalOcean currently has an average rating of "Moderate Buy" and an average target price of $142.23.

Insider Buying and Selling

In related news, CFO Matt Steinfort sold 25,000 shares of the stock in a transaction on Friday, May 15th. The stock was sold at an average price of $152.50, for a total transaction of $3,812,500.00. Following the completion of the sale, the chief financial officer directly owned 573,272 shares of the company's stock, valued at $87,423,980. This trade represents a 4.18% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CAO Cherie Barrett sold 22,000 shares of the stock in a transaction on Monday, March 2nd. The stock was sold at an average price of $54.77, for a total value of $1,204,940.00. Following the sale, the chief accounting officer directly owned 62,469 shares of the company's stock, valued at approximately $3,421,427.13. This represents a 26.05% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 71,338 shares of company stock valued at $6,803,816 over the last three months. 0.96% of the stock is currently owned by company insiders.

DigitalOcean 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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