Assenagon Asset Management S.A. Acquires 136,020 Shares of DigitalOcean Holdings, Inc. $DOCN

Key Points

• Assenagon Asset Management increased its DigitalOcean position by 956% in the third quarter, purchasing 136,020 additional shares and bringing its holdings to 150,248 shares worth approximately $20 million.
• DigitalOcean reported quarterly EPS of $0.45, exceeding analysts’ $0.26 estimate, while revenue rose 28.6% year over year to $281.18 million. Institutional investors collectively own 49.77% of the company.
• Analysts maintain a broadly positive outlook, with a consensus “Moderate Buy” rating and an average price target of $154.69; recent targets range as high as $220.

Assenagon Asset Management S.A. increased its holdings in DigitalOcean Holdings, Inc. (NYSE:DOCN - Free Report) by 956.0% in the third quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 150,248 shares of the company's stock after purchasing an additional 136,020 shares during the period. Assenagon Asset Management S.A. owned approximately 0.14% of DigitalOcean worth $20,042,000 as of its most recent SEC filing.

A number of other institutional investors also recently made changes to their positions in the business. Bank of America Corp DE bought a new position in shares of DigitalOcean during the second quarter valued at about $241,945,000. Principal Financial Group Inc. boosted its holdings in DigitalOcean by 155.3% during the 1st quarter. Principal Financial Group Inc. now owns 1,108,420 shares of the company's stock valued at $95,080,000 after acquiring an additional 674,231 shares during the period. Bank of New York Mellon Corp purchased a new stake in DigitalOcean during the 2nd quarter valued at about $98,011,000. Allspring Global Investments Holdings LLC boosted its holdings in DigitalOcean by 81.3% during the 1st quarter. Allspring Global Investments Holdings LLC now owns 683,707 shares of the company's stock valued at $59,947,000 after acquiring an additional 306,529 shares during the period. Finally, Sei Investments Co. boosted its holdings in DigitalOcean by 82.8% during the 1st quarter. Sei Investments Co. now owns 370,223 shares of the company's stock valued at $31,758,000 after acquiring an additional 167,659 shares during the period. Hedge funds and other institutional investors own 49.77% of the company's stock.

DigitalOcean Price Performance

Shares of DOCN stock opened at $98.38 on Monday. The firm has a market cap of $10.27 billion, a P/E ratio of 44.92, a P/E/G ratio of 83.92 and a beta of 1.70. DigitalOcean Holdings, Inc. has a fifty-two week low of $37.83 and a fifty-two week high of $187.50. The business's 50 day moving average price is $125.04 and its 200-day moving average price is $130.14. The company has a debt-to-equity ratio of 1.14, a quick ratio of 1.31 and a current ratio of 1.31.

DigitalOcean (NYSE:DOCN - Get Free Report) last posted its earnings results on Tuesday, August 4th. The company reported $0.45 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.26 by $0.19. The firm had revenue of $281.18 million for the quarter, compared to analysts' expectations of $279.03 million. DigitalOcean had a return on equity of 31.01% and a net margin of 23.26%. The business's revenue was up 28.6% compared to the same quarter last year. During the same period in the previous year, the firm 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. On average, equities research analysts anticipate that DigitalOcean Holdings, Inc. will post 0.64 earnings per share for the current year.

Analyst Upgrades and Downgrades

Several research firms recently issued reports on DOCN. Canaccord Genuity Group restated a "buy" rating and set a $200.00 price target on shares of DigitalOcean in a research report on Friday, July 10th. Robert W. Baird initiated coverage on DigitalOcean in a research report on Tuesday, July 21st. They issued an "outperform" rating and a $165.00 price objective for the company. KeyCorp reissued an "overweight" rating on shares of DigitalOcean in a research note on Tuesday, October 13th. Oppenheimer increased their price objective on DigitalOcean from $190.00 to $220.00 and gave the company an "outperform" rating in a research note on Wednesday. Finally, William Blair restated an "outperform" rating on shares of DigitalOcean in a report on Wednesday, July 15th. One research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $154.69.

Insider Transactions at DigitalOcean

In related news, CFO Matt Steinfort sold 10,000 shares of the business's stock in a transaction dated Thursday, September 3rd. The shares were sold at an average price of $105.73, for a total transaction of $1,057,300.00. Following the transaction, the chief financial officer owned 503,692 shares in the company, valued at $53,255,355.16. The trade was a 1.95% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 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, Director Warren J. Adelman sold 4,200 shares of the business's stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $124.01, for a total transaction of $520,842.00. Following the transaction, the director owned 67,433 shares in the company, valued at $8,362,366.33. This represents a 5.86% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 22,641 shares of company stock valued at $2,589,317. Company insiders own 0.96% of the company's stock.

DigitalOcean Company Profile

DigitalOcean Holdings, Inc is a cloud computing company that provides infrastructure and developer-focused services for startups, small and medium-sized businesses, and individual developers. Its platform is designed to simplify the deployment, management, and scaling of applications without requiring customers to build and operate extensive in-house infrastructure.

The company's offerings include Droplets, its virtual machine service; managed Kubernetes; managed databases; object and block storage; networking tools; and application deployment services through App Platform.

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