Castleark Management LLC Acquires Shares of 184,989 DigitalOcean Holdings, Inc. $DOCN

Key Points

• Castleark Management LLC bought 184,989 shares of DigitalOcean in the fourth quarter, a stake worth about $8.9 million and equal to roughly 0.20% of the company.
• DigitalOcean reported better-than-expected Q1 results, with EPS of $0.44 versus $0.27 expected and revenue of $257.91 million, up 22.4% year over year.
• Analysts are generally bullish on the stock, with a consensus rating of “Moderate Buy” and a consensus price target of $146.36, while insiders recently sold shares, including CFO Matt Steinfort and director Hilary Schneider.

Castleark Management LLC purchased a new stake in shares of DigitalOcean Holdings, Inc. (NYSE:DOCN - Free Report) during the fourth quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor purchased 184,989 shares of the company's stock, valued at approximately $8,902,000. Castleark Management LLC owned about 0.20% of DigitalOcean as of its most recent SEC filing.

Other institutional investors have also recently made changes to their positions in the company. Allworth Financial LP grew its holdings in shares of DigitalOcean by 54.4% during the third quarter. Allworth Financial LP now owns 724 shares of the company's stock valued at $25,000 after buying an additional 255 shares during the last quarter. Huntington National Bank grew its holdings in shares of DigitalOcean by 638.3% during the fourth quarter. Huntington National Bank now owns 598 shares of the company's stock valued at $29,000 after buying an additional 517 shares during the last quarter. NBC Securities Inc. purchased a new stake in shares of DigitalOcean during the fourth quarter valued at approximately $32,000. Wilmington Savings Fund Society FSB bought a new stake in shares of DigitalOcean in the third quarter worth approximately $37,000. Finally, Hantz Financial Services Inc. grew its stake in shares of DigitalOcean by 164.9% in the fourth quarter. Hantz Financial Services Inc. now owns 898 shares of the company's stock worth $43,000 after acquiring an additional 559 shares during the period. Hedge funds and other institutional investors own 49.77% of the company's stock.

DigitalOcean Stock Performance

DOCN opened at $169.35 on Friday. The firm has a market cap of $17.67 billion, a P/E ratio of 73.95 and a beta of 1.60. DigitalOcean Holdings, Inc. has a 1-year low of $25.56 and a 1-year high of $184.46. The company has a 50 day simple moving average of $131.28 and a two-hundred day simple moving average of $83.83. The company has a debt-to-equity ratio of 0.92, a current ratio of 1.46 and a quick ratio of 1.46.

DigitalOcean (NYSE:DOCN - Get Free Report) last released its earnings results on Tuesday, May 5th. The company reported $0.44 EPS for the quarter, topping the consensus estimate of $0.27 by $0.17. The firm had revenue of $257.91 million for the quarter, compared to the consensus estimate of $249.76 million. DigitalOcean had a net margin of 24.97% and a return on equity of 88.86%. The company's quarterly revenue was up 22.4% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.56 earnings per share. DigitalOcean has set its Q2 2026 guidance at 0.200-0.230 EPS and its FY 2026 guidance at 1.100-1.200 EPS. Equities analysts forecast that DigitalOcean Holdings, Inc. will post 0.54 earnings per share for the current fiscal year.

Analyst Ratings Changes

A number of analysts have recently commented on the stock. Piper Sandler lifted their price target on shares of DigitalOcean from $98.00 to $155.00 and gave the stock a "neutral" rating in a research note on Tuesday, May 5th. Royal Bank Of Canada set a $60.00 price target on shares of DigitalOcean in a research note on Tuesday, February 24th. Citigroup lifted their price target on shares of DigitalOcean from $115.00 to $180.00 and gave the stock a "buy" rating in a research note on Thursday, May 7th. Canaccord Genuity Group reiterated a "buy" rating and issued a $200.00 price target on shares of DigitalOcean in a research note on Thursday. Finally, Cantor Fitzgerald lifted their price target on shares of DigitalOcean from $68.00 to $83.00 and gave the stock an "overweight" rating in a research note on Wednesday, February 25th. One investment analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and three have issued a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $146.36.

Insiders Place Their Bets

In other news, CFO Matt Steinfort sold 10,000 shares of the 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 sale, the chief financial officer owned 538,414 shares of the company's stock, valued at approximately $91,568,068.98. This represents a 1.82% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, 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, Director Hilary Schneider sold 4,338 shares of the 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 completion of the sale, the director directly owned 24,323 shares in the company, valued at approximately $3,803,630.74. This represents a 15.14% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 39,338 shares of company stock worth $6,191,576. 0.96% of the stock is owned by 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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