Comerica Bank Buys 50,762 Shares of DigitalOcean Holdings, Inc. $DOCN

Key Points

• Comerica Bank increased its stake in DigitalOcean Holdings, Inc. by 77.3%, owning 116,461 shares valued at approximately $3.89 million.
• DigitalOcean reported $0.59 earnings per share for the latest quarter, exceeding analyst expectations of $0.47, and its revenue increased by 13.6% year-over-year.
• Multiple brokerages have raised their ratings for DigitalOcean, with Morgan Stanley increasing the target price from $41.00 to $44.00 and upgrading the stock to "overweight".

Comerica Bank grew its position in shares of DigitalOcean Holdings, Inc. (NYSE:DOCN - Free Report) by 77.3% during the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 116,461 shares of the company's stock after buying an additional 50,762 shares during the quarter. Comerica Bank owned 0.13% of DigitalOcean worth $3,889,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors have also recently made changes to their positions in the company. Fuller & Thaler Asset Management Inc. raised its holdings in DigitalOcean by 28.6% in the 1st quarter. Fuller & Thaler Asset Management Inc. now owns 1,987,177 shares of the company's stock worth $66,352,000 after purchasing an additional 441,535 shares during the period. Jacobs Levy Equity Management Inc. lifted its position in shares of DigitalOcean by 16.6% during the 4th quarter. Jacobs Levy Equity Management Inc. now owns 1,628,995 shares of the company's stock valued at $55,500,000 after buying an additional 231,407 shares in the last quarter. Nuveen LLC purchased a new position in shares of DigitalOcean during the 1st quarter valued at about $5,737,000. Russell Investments Group Ltd. grew its stake in shares of DigitalOcean by 75.5% during the 1st quarter. Russell Investments Group Ltd. now owns 285,079 shares of the company's stock valued at $9,519,000 after acquiring an additional 122,612 shares during the period. Finally, Interval Partners LP purchased a new stake in DigitalOcean in the 4th quarter worth approximately $3,690,000. Institutional investors own 49.77% of the company's stock.

Analyst Ratings Changes

Several equities analysts have weighed in on DOCN shares. Barclays lifted their price target on shares of DigitalOcean from $38.00 to $40.00 and gave the company an "overweight" rating in a report on Wednesday, August 6th. Morgan Stanley lifted their target price on shares of DigitalOcean from $41.00 to $44.00 and gave the company an "overweight" rating in a research note on Wednesday, August 6th. UBS Group cut their price target on DigitalOcean from $44.00 to $32.00 and set a "neutral" rating for the company in a research note on Thursday, May 8th. The Goldman Sachs Group lowered their price objective on DigitalOcean from $46.00 to $41.00 and set a "buy" rating on the stock in a research report on Wednesday, May 7th. Finally, Wall Street Zen raised DigitalOcean from a "hold" rating to a "buy" rating in a research note on Sunday, June 29th. Six equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $41.45.

DigitalOcean Stock Performance

Shares of DOCN traded down $0.01 during mid-day trading on Thursday, hitting $32.03. 810,510 shares of the stock were exchanged, compared to its average volume of 1,742,433. The company has a market cap of $2.92 billion, a PE ratio of 24.69, a price-to-earnings-growth ratio of 1.85 and a beta of 1.77. DigitalOcean Holdings, Inc. has a 52-week low of $25.45 and a 52-week high of $47.02. The firm has a 50-day moving average of $30.05 and a two-hundred day moving average of $31.54.

DigitalOcean (NYSE:DOCN - Get Free Report) last released its quarterly earnings data on Tuesday, August 5th. The company reported $0.59 EPS for the quarter, beating the consensus estimate of $0.47 by $0.12. DigitalOcean had a net margin of 15.18% and a negative return on equity of 73.19%. The business had revenue of $218.70 million during the quarter, compared to analyst estimates of $216.62 million. During the same quarter last year, the business earned $0.48 earnings per share. DigitalOcean's quarterly revenue was up 13.6% compared to the same quarter last year. DigitalOcean has set its FY 2025 guidance at 2.050-2.100 EPS. Q3 2025 guidance at 0.450-0.500 EPS. On average, sell-side analysts predict that DigitalOcean Holdings, Inc. will post 1.01 EPS for the current year.

Insider Activity at DigitalOcean

In other news, insider Bratin Saha sold 13,010 shares of the stock in a transaction on Wednesday, September 3rd. The shares were sold at an average price of $31.87, for a total value of $414,628.70. Following the sale, the insider owned 269,465 shares of the company's stock, valued at approximately $8,587,849.55. This represents a 4.61% 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. Company insiders own 0.96% of the company's stock.

DigitalOcean Profile

DigitalOcean Holdings, Inc, through its subsidiaries, operates a cloud computing platform in North America, Europe, Asia, and internationally. The company's platform provides on-demand infrastructure and platform tools for developers, start-ups, and small and growing digital businesses. It also offers infrastructure-as-a-service (IaaS) solutions comprising compute and storage services, as well as networking projects, including Cloud Firewalls software, Managed Load Balancers software, and Virtual Private Cloud (VPC).