Viking Fund Management LLC Purchases 10,000 Shares of DigitalOcean Holdings, Inc. $DOCN

Key Points

• Viking Fund Management LLC increased its stake in DigitalOcean Holdings by 15.4%, now owning 75,000 shares valued at approximately $2.14 million.
• DigitalOcean's recent quarterly earnings exceeded expectations, reporting $0.59 EPS against an estimate of $0.47, contributing to a year-over-year revenue increase of 13.6%.
• Analysts have set new price targets for DigitalOcean, with estimates ranging from $36.00 to $49.00, reflecting a generally positive outlook on the stock.

Viking Fund Management LLC grew its stake in DigitalOcean Holdings, Inc. (NYSE:DOCN - Free Report) by 15.4% during the second quarter, according to its most recent 13F filing with the SEC. The firm owned 75,000 shares of the company's stock after acquiring an additional 10,000 shares during the period. Viking Fund Management LLC owned about 0.08% of DigitalOcean worth $2,142,000 as of its most recent filing with the SEC.

A number of other hedge funds and other institutional investors have also modified their holdings of DOCN. Wesbanco Bank Inc. bought a new position in DigitalOcean in the 1st quarter valued at about $808,000. Fuller & Thaler Asset Management Inc. lifted its stake 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 valued at $66,352,000 after acquiring an additional 441,535 shares in the last quarter. Nuveen LLC bought a new stake in DigitalOcean in the 1st quarter valued at $5,737,000. Concurrent Investment Advisors LLC bought a new position in DigitalOcean in the first quarter valued at about $265,000. Finally, Sumitomo Mitsui Trust Group Inc. raised its position in shares of DigitalOcean by 119.6% during the first quarter. Sumitomo Mitsui Trust Group Inc. now owns 16,729 shares of the company's stock worth $559,000 after acquiring an additional 9,110 shares during the last quarter. 49.77% of the stock is currently owned by hedge funds and other institutional investors.

DigitalOcean Stock Down 1.6%

Shares of DigitalOcean stock traded down $0.61 on Friday, reaching $36.60. The company's stock had a trading volume of 5,545,082 shares, compared to its average volume of 2,310,144. The company has a market capitalization of $3.33 billion, a price-to-earnings ratio of 28.15, a P/E/G ratio of 2.08 and a beta of 1.77. The firm's fifty day simple moving average is $31.58 and its two-hundred day simple moving average is $30.89. DigitalOcean Holdings, Inc. has a 52 week low of $25.45 and a 52 week high of $47.02.

DigitalOcean (NYSE:DOCN - Get Free Report) last issued 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. The firm had revenue of $218.70 million during the quarter, compared to analyst estimates of $216.62 million. DigitalOcean had a negative return on equity of 73.19% and a net margin of 15.18%.The business's revenue for the quarter was up 13.6% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.48 EPS. DigitalOcean has set its FY 2025 guidance at 2.050-2.100 EPS. Q3 2025 guidance at 0.450-0.500 EPS. As a group, research analysts predict that DigitalOcean Holdings, Inc. will post 1.01 EPS for the current year.

Analyst Ratings Changes

Several equities analysts recently commented on DOCN shares. Canaccord Genuity Group boosted their target price on DigitalOcean from $45.00 to $49.00 and gave the stock a "buy" rating in a research report on Wednesday, August 6th. Barclays boosted their price target on DigitalOcean from $38.00 to $40.00 and gave the company an "overweight" rating in a report on Wednesday, August 6th. Stifel Nicolaus set a $36.00 target price on shares of DigitalOcean in a research note on Tuesday, August 5th. Morgan Stanley raised their price target on shares of DigitalOcean from $41.00 to $44.00 and gave the company an "overweight" rating in a research report on Wednesday, August 6th. Finally, Wall Street Zen raised shares of DigitalOcean from a "hold" rating to a "buy" rating in a report on Sunday, June 29th. Six research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, DigitalOcean presently has a consensus rating of "Hold" and an average price target of $41.45.

Insider Activity at DigitalOcean

In other DigitalOcean news, insider Bratin Saha sold 13,010 shares of the business's stock in a transaction that occurred 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 completion of the sale, the insider directly owned 269,465 shares of the company's stock, valued at $8,587,849.55. The trade was a 4.61% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Company insiders own 0.96% of the company's stock.

About DigitalOcean

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).