Caxton Associates LLP Invests $1.61 Million in DigitalOcean Holdings, Inc. $DOCN

Key Points

• Caxton Associates LLP disclosed a new first-quarter stake in DigitalOcean, buying 18,750 shares valued at about $1.61 million.
• DigitalOcean shares were down 5.7% in Friday trading, even as the stock has ranged from a 52-week low of $25.56 to a high of $187.50.
• The company recently beat earnings and revenue estimates for the quarter, reporting $0.44 EPS on $257.9 million in revenue, while Wall Street still largely rates the stock a Buy.

Caxton Associates LLP purchased a new stake in shares of DigitalOcean Holdings, Inc. (NYSE:DOCN - Free Report) during the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 18,750 shares of the company's stock, valued at approximately $1,608,000.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in DigitalOcean by 5.0% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 339,670 shares of the company's stock valued at $11,342,000 after purchasing an additional 16,162 shares during the period. Intech Investment Management LLC lifted its holdings in shares of DigitalOcean by 59.2% in the first quarter. Intech Investment Management LLC now owns 39,429 shares of the company's stock valued at $1,317,000 after purchasing an additional 14,655 shares in the last quarter. Amundi lifted its holdings in shares of DigitalOcean by 126,552.2% in the second quarter. Amundi now owns 29,130 shares of the company's stock valued at $827,000 after purchasing an additional 29,107 shares in the last quarter. Jump Financial LLC acquired a new stake in shares of DigitalOcean in the second quarter worth $3,212,000. Finally, Qube Research & Technologies Ltd boosted its position in shares of DigitalOcean by 69.7% in the second quarter. Qube Research & Technologies Ltd now owns 414,643 shares of the company's stock worth $11,842,000 after buying an additional 170,339 shares during the period. Institutional investors and hedge funds own 49.77% of the company's stock.

DigitalOcean Trading Down 5.7%

NYSE DOCN opened at $123.65 on Friday. DigitalOcean Holdings, Inc. has a 1-year low of $25.56 and a 1-year high of $187.50. The company has a current ratio of 1.46, a quick ratio of 1.46 and a debt-to-equity ratio of 0.92. The company has a market capitalization of $12.90 billion, a PE ratio of 53.99 and a beta of 1.57. The firm's fifty day simple moving average is $151.20 and its 200-day simple moving average is $103.88.

DigitalOcean (NYSE:DOCN - Get Free Report) last announced its quarterly earnings data on Tuesday, May 5th. The company reported $0.44 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.27 by $0.17. DigitalOcean had a return on equity of 88.86% and a net margin of 24.97%.The business had revenue of $257.90 million during the quarter, compared to analyst estimates of $249.76 million. During the same period last year, the company earned $0.56 earnings per share. DigitalOcean'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. As a group, sell-side analysts anticipate that DigitalOcean Holdings, Inc. will post 0.56 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

Several research analysts recently weighed in on the company. William Blair reissued an "outperform" rating on shares of DigitalOcean in a research report on Wednesday, July 15th. Oppenheimer set a $190.00 price objective on DigitalOcean in a research report on Wednesday, May 6th. Citigroup lifted their target price on DigitalOcean from $180.00 to $185.00 and gave the company a "buy" rating in a research note on Wednesday, July 8th. Bank of America upped their target price on DigitalOcean from $103.00 to $107.00 and gave the company a "buy" rating in a report on Thursday, April 9th. Finally, Weiss Ratings raised shares of DigitalOcean from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Friday, July 10th. Two analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Buy" and an average target price of $151.93.

Insider Transactions at DigitalOcean

In other news, CFO Matt Steinfort sold 10,000 shares of the firm's stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $170.07, for a total transaction of $1,700,700.00. Following the completion of the sale, the chief financial officer directly owned 538,414 shares of the company's stock, valued at $91,568,068.98. This trade represents a 1.82% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at 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 Hilary Schneider sold 4,338 shares of DigitalOcean stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $156.38, for a total value of $678,376.44. Following the sale, the director owned 24,323 shares of the company's stock, valued at approximately $3,803,630.74. This represents a 15.14% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 39,338 shares of company stock valued at $6,191,576 over the last ninety days. Company 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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