Bank of America Corp DE Acquires Shares of 1,540,754 DigitalOcean Holdings, Inc. $DOCN

Key Points

• Bank of America acquired 1.54 million DigitalOcean shares worth approximately $241.9 million during the second quarter, giving it a 1.48% stake. Institutional investors collectively own 49.77% of DOCN.
• DigitalOcean reported quarterly EPS of $0.45, beating estimates of $0.26, while revenue rose 28.6% year over year to $281.18 million. The company issued fiscal 2026 EPS guidance of $1.35–$1.40.
• DOCN shares opened at $123.66 and have gained 4.9%; analysts maintain a “Moderate Buy” consensus rating with an average price target of $152.81, despite some insider selling under pre-arranged plans.

Bank of America Corp DE acquired a new stake in DigitalOcean Holdings, Inc. (NYSE:DOCN - Free Report) during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 1,540,754 shares of the company's stock, valued at approximately $241,945,000. Bank of America Corp DE owned 1.48% of DigitalOcean as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other institutional investors and hedge funds have also made changes to their positions in the business. Magnolia Capital Advisors LLC purchased a new position in DigitalOcean during the second quarter worth about $201,000. Jupiter Topco LLC purchased a new stake in shares of DigitalOcean in the second quarter valued at approximately $5,400,000. Canada Pension Plan Investment Board acquired a new position in DigitalOcean during the second quarter worth $10,992,000. Castleark Management LLC acquired a new position in DigitalOcean during the second quarter worth $5,580,000. Finally, Osterweis Capital Management Inc. purchased a new position in DigitalOcean in the second quarter worth $14,374,000. 49.77% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In other news, CFO Matt Steinfort sold 10,000 shares of the business's 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 completion of the sale, the chief financial officer owned 503,692 shares in the company, valued at approximately $53,255,355.16. The trade was a 1.95% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed 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 the stock in a transaction that occurred on Thursday, August 13th. The stock was sold at an average price of $132.37, for a total transaction of $589,840.72. Following the sale, the chief accounting officer directly owned 65,487 shares of the company's stock, valued at approximately $8,668,514.19. This trade represents a 6.37% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 22,641 shares of company stock valued at $2,589,317 in the last three months. Corporate insiders own 0.96% of the company's stock.

DigitalOcean Stock Up 4.9%

Shares of NYSE:DOCN opened at $123.66 on Thursday. The company has a current ratio of 1.31, a quick ratio of 1.31 and a debt-to-equity ratio of 1.14. The firm has a market cap of $12.90 billion, a price-to-earnings ratio of 56.46, a PEG ratio of 100.89 and a beta of 1.57. The stock's 50-day moving average price is $121.87 and its two-hundred day moving average price is $120.72. DigitalOcean Holdings, Inc. has a 12-month low of $33.69 and a 12-month high of $187.50.

DigitalOcean (NYSE:DOCN - Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The company reported $0.45 EPS for the quarter, beating analysts' consensus estimates of $0.26 by $0.19. DigitalOcean had a net margin of 23.26% and a return on equity of 31.01%. The company had revenue of $281.18 million during the quarter, compared to the consensus estimate of $279.03 million. During the same quarter in the prior year, the company posted $0.39 EPS. The company's quarterly revenue was up 28.6% compared to the same quarter last year. 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, research analysts forecast that DigitalOcean Holdings, Inc. will post 0.63 EPS for the current year.

Analyst Upgrades and Downgrades

DOCN has been the topic of several research reports. Robert W. Baird began coverage on DigitalOcean in a report on Tuesday, July 21st. They issued an "outperform" rating and a $165.00 target price on the stock. Weiss Ratings downgraded DigitalOcean from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Wednesday, September 9th. Canaccord Genuity Group reiterated a "buy" rating and issued a $200.00 price objective on shares of DigitalOcean in a research report on Friday, July 10th. KeyCorp initiated coverage on shares of DigitalOcean in a research note on Tuesday, June 2nd. They issued an "overweight" rating and a $200.00 price objective on the stock. Finally, Citigroup raised their target price on shares of DigitalOcean from $185.00 to $190.00 and gave the company a "buy" rating in a report on Wednesday, August 5th. Two investment analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $152.81.

About DigitalOcean

DigitalOcean Holdings, Inc provides cloud computing services designed primarily for developers, startups, and small and medium-sized businesses. Its platform offers on-demand infrastructure and developer tools intended to simplify the process of building, deploying, and scaling applications.

The company's products include virtual machines known as Droplets, managed Kubernetes, managed databases, object storage through Spaces, block storage, networking services, and App Platform, a platform-as-a-service offering for application deployment.

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