CUSHING ASSET MANAGEMENT LP dba NXG INVESTMENT MANAGEMENT Raises Holdings in DigitalOcean Holdings, Inc. $DOCN

Key Points

• CUSHING ASSET MANAGEMENT increased its stake in DigitalOcean by 14% in the first quarter, adding 16,200 shares to bring its total holding to 132,200 shares valued at about $11.34 million.
• DigitalOcean reported better-than-expected quarterly results, with EPS of $0.44 versus the $0.27 consensus and revenue of $257.9 million, up 22.4% year over year.
• Analysts remain generally positive on the stock, with a Moderate Buy consensus and an average price target of $146.36, while several firms recently raised their targets.

CUSHING ASSET MANAGEMENT LP dba NXG INVESTMENT MANAGEMENT lifted its position in shares of DigitalOcean Holdings, Inc. (NYSE:DOCN - Free Report) by 14.0% during the first quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 132,200 shares of the company's stock after purchasing an additional 16,200 shares during the period. CUSHING ASSET MANAGEMENT LP dba NXG INVESTMENT MANAGEMENT owned about 0.13% of DigitalOcean worth $11,340,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also made changes to their positions in the company. Maryland State Retirement & Pension System grew its stake in DigitalOcean by 1.9% during the 4th quarter. Maryland State Retirement & Pension System now owns 10,001 shares of the company's stock worth $481,000 after buying an additional 185 shares during the last quarter. Allworth Financial LP lifted its stake in DigitalOcean by 54.4% in 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. CWM LLC boosted its holdings in shares of DigitalOcean by 1.3% in the fourth quarter. CWM LLC now owns 20,971 shares of the company's stock valued at $1,009,000 after acquiring an additional 270 shares during the period. Banque Cantonale Vaudoise purchased a new position in shares of DigitalOcean during the first quarter worth approximately $33,000. Finally, Whittier Trust Co. of Nevada Inc. grew its position in shares of DigitalOcean by 76.4% during the first quarter. Whittier Trust Co. of Nevada Inc. now owns 912 shares of the company's stock worth $79,000 after acquiring an additional 395 shares during the last quarter. 49.77% of the stock is owned by hedge funds and other institutional investors.

DigitalOcean Stock Down 0.2%

Shares of NYSE:DOCN opened at $129.91 on Monday. DigitalOcean Holdings, Inc. has a fifty-two week low of $25.56 and a fifty-two week high of $187.50. The company has a quick ratio of 1.46, a current ratio of 1.46 and a debt-to-equity ratio of 0.92. The firm's 50-day simple moving average is $152.40 and its 200-day simple moving average is $95.68. The company has a market cap of $13.56 billion, a price-to-earnings ratio of 56.73 and a beta of 1.57.

DigitalOcean (NYSE:DOCN - Get Free Report) last posted its quarterly earnings results 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. The firm had revenue of $257.90 million during the quarter, compared to analysts' expectations of $249.76 million. DigitalOcean had a net margin of 24.97% and a return on equity of 88.86%. The firm's revenue for the quarter was up 22.4% on a year-over-year basis. During the same period in the prior year, the company posted $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. As a group, equities research analysts predict that DigitalOcean Holdings, Inc. will post 0.54 earnings per share for the current year.

Insider Activity at DigitalOcean

In related news, CFO Matt Steinfort sold 25,000 shares of the company's stock in a transaction on Friday, May 15th. The stock was sold at an average price of $152.50, for a total transaction of $3,812,500.00. Following the transaction, the chief financial officer owned 573,272 shares of the company's stock, valued at $87,423,980. This represents a 4.18% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Hilary Schneider sold 4,338 shares of the firm's stock in a transaction on Friday, May 15th. The shares were sold at an average price of $156.38, for a total value of $678,376.44. Following the completion of the sale, the director directly owned 24,323 shares of the company's stock, valued at approximately $3,803,630.74. This trade represents a 15.14% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 39,338 shares of company stock worth $6,191,576 in the last quarter. 0.96% of the stock is currently owned by insiders.

Analyst Upgrades and Downgrades

Several research firms recently commented on DOCN. UBS Group upped their price target on shares of DigitalOcean to $175.00 and gave the company a "neutral" rating in a research report on Tuesday, May 12th. Piper Sandler lifted their price objective on shares of DigitalOcean from $98.00 to $155.00 and gave the company a "neutral" rating in a research note on Tuesday, May 5th. Canaccord Genuity Group reaffirmed a "buy" rating and issued a $200.00 target price on shares of DigitalOcean in a report on Thursday, June 11th. Oppenheimer set a $190.00 target price on shares of DigitalOcean in a research note on Wednesday, May 6th. Finally, The Goldman Sachs Group raised their price target on DigitalOcean from $78.00 to $179.00 and gave the stock a "buy" rating in a report on Wednesday, May 6th. One research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $146.36.

About DigitalOcean

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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