California State Teachers Retirement System Purchases 23,985 Shares of DigitalOcean Holdings, Inc. $DOCN

Key Points

• CalSTRS increased its DigitalOcean position by 37.4% in the first quarter, purchasing 23,985 shares to reach 88,179 shares valued at approximately $7.56 million. Institutional investors collectively own 49.77% of DOCN.
• DigitalOcean reported quarterly earnings of $0.45 per share, well above the $0.26 consensus estimate, while revenue rose 28.6% year over year to $281.18 million. Management also issued fiscal 2026 EPS guidance of $1.35-$1.40.
• Analyst sentiment is generally positive, with a consensus “Moderate Buy” rating and an average price target of $151.93, though valuation and volatility remain risks as the stock trades at a high earnings multiple and insiders have recently sold shares.

California State Teachers Retirement System boosted its position in DigitalOcean Holdings, Inc. (NYSE:DOCN - Free Report) by 37.4% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 88,179 shares of the company's stock after buying an additional 23,985 shares during the quarter. California State Teachers Retirement System owned approximately 0.08% of DigitalOcean worth $7,564,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors also recently made changes to their positions in the company. Parallel Advisors LLC raised its position in DigitalOcean by 66.2% in the 1st quarter. Parallel Advisors LLC now owns 324 shares of the company's stock worth $28,000 after purchasing an additional 129 shares during the period. Banque Cantonale Vaudoise bought a new position in shares of DigitalOcean during the first quarter valued at about $33,000. Huntington National Bank increased its holdings in shares of DigitalOcean by 638.3% in the fourth quarter. Huntington National Bank now owns 598 shares of the company's stock worth $29,000 after buying an additional 517 shares during the period. NBC Securities Inc. purchased a new position in shares of DigitalOcean in the fourth quarter worth about $32,000. Finally, Allworth Financial LP lifted its stake in shares of DigitalOcean by 54.4% in the 3rd quarter. Allworth Financial LP now owns 724 shares of the company's stock valued at $25,000 after acquiring an additional 255 shares during the last quarter. Hedge funds and other institutional investors own 49.77% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on DOCN. Morgan Stanley increased their price objective on DigitalOcean from $75.00 to $175.00 and gave the company an "overweight" rating in a research note on Wednesday, May 6th. Weiss Ratings cut shares of DigitalOcean from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Tuesday, July 28th. The Goldman Sachs Group raised their target price on shares of DigitalOcean from $78.00 to $179.00 and gave the company a "buy" rating in a research note on Wednesday, May 6th. Piper Sandler boosted their price target on DigitalOcean from $98.00 to $155.00 and gave the stock a "neutral" rating in a research report on Tuesday, May 5th. Finally, William Blair restated an "outperform" rating on shares of DigitalOcean in a research note on Wednesday, July 15th. Two analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat, DigitalOcean has a consensus rating of "Moderate Buy" and an average price target of $151.93.

DigitalOcean Stock Performance

Shares of DOCN stock opened at $129.11 on Wednesday. The company has a quick ratio of 1.46, a current ratio of 1.46 and a debt-to-equity ratio of 0.92. DigitalOcean Holdings, Inc. has a 52 week low of $28.79 and a 52 week high of $187.50. The firm has a market capitalization of $13.47 billion, a PE ratio of 56.38 and a beta of 1.61. The company has a 50 day moving average price of $145.98 and a 200-day moving average price of $107.48.

DigitalOcean (NYSE:DOCN - Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The company reported $0.45 earnings per share 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 88.86% and a net margin of 24.97%.The company's revenue was up 28.6% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.39 EPS. 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, equities research analysts expect that DigitalOcean Holdings, Inc. will post 0.57 earnings per share for the current year.

Key Stories Impacting DigitalOcean

Here are the key news stories impacting DigitalOcean this week:

• Positive Sentiment: Q2 results exceeded expectations. DigitalOcean reported adjusted earnings of $0.45 per share, above the $0.26 consensus estimate, while revenue rose 28.6% year over year to $281.18 million, slightly ahead of the $279.03 million forecast. DigitalOcean Beats Q2 Earnings and Revenue Estimates
• Positive Sentiment: Management raised its 2026 outlook. Full-year EPS guidance was increased to $1.35-$1.40, versus the $1.06 analyst consensus. Revenue guidance was raised to approximately $1.2 billion, ahead of the roughly $1.1 billion consensus. Third-quarter guidance also exceeded expectations, with revenue of $304-$307 million and EPS of $0.28-$0.30. DigitalOcean Announces Second Quarter 2026 Financial Results
• Positive Sentiment: AI-related demand is improving growth prospects. The company forecast approximately 30.5% revenue growth for 2026 and a greater-than-35% exit growth rate as inference services scale, providing a potential catalyst for continued expansion. DigitalOcean Forecasts 2026 Revenue Growth
• Neutral Sentiment: Investor reaction has been mixed. DOCN initially declined sharply despite the quarterly beat and raised guidance, indicating that elevated expectations or valuation concerns may be limiting the positive response. The stock later recovered, leaving trading unusually volatile.
• Negative Sentiment: Valuation remains a risk. DigitalOcean trades at a relatively high earnings multiple, so continued upside may depend on the company delivering the accelerated growth and AI-related expansion embedded in its revised outlook.

Insider Transactions at DigitalOcean

In other news, Director Hilary Schneider sold 4,338 shares of DigitalOcean stock in a transaction on Friday, May 15th. The shares were sold at an average price of $156.38, for a total transaction of $678,376.44. Following the transaction, the director owned 24,323 shares in the company, valued at $3,803,630.74. This trade represents a 15.14% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CFO Matt Steinfort sold 10,000 shares of DigitalOcean stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $170.07, for a total value of $1,700,700.00. Following the transaction, the chief financial officer owned 538,414 shares in the company, valued at $91,568,068.98. This trade represents a 1.82% decrease in their ownership of the stock. 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders have sold 39,338 shares of company stock valued at $6,191,576. Corporate insiders own 0.96% of the company's stock.

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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