DigitalOcean Holdings, Inc. $DOCN Shares Sold by Calamos Advisors LLC

Key Points

• Calamos Advisors cut its DigitalOcean stake by 62.8% in the third quarter, selling 27,693 shares and ending the period with 16,413 shares valued at about $2.19 million.
• Institutional investors had mixed activity: Assenagon sharply increased its position, while several other funds opened new stakes. Hedge funds and institutions collectively owned 49.77% of the company.
• DigitalOcean beat quarterly earnings and revenue estimates, reporting EPS of $0.45 versus $0.32 expected and revenue up 39.6% year over year. Analysts’ consensus rating was “Moderate Buy,” though some firms recently lowered price targets.

Calamos Advisors LLC lowered its stake in shares of DigitalOcean Holdings, Inc. (NYSE:DOCN - Free Report) by 62.8% during the third quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 16,413 shares of the company's stock after selling 27,693 shares during the period. Calamos Advisors LLC's holdings in DigitalOcean were worth $2,189,000 at the end of the most recent reporting period.

Other hedge funds also recently made changes to their positions in the company. Ausbil Investment Management Ltd acquired a new position in DigitalOcean in the third quarter valued at $3,401,000. Danske Bank A S purchased a new stake in DigitalOcean during the second quarter valued at about $1,488,000. Wealth High Governance Asset Management Ltda. purchased a new stake in DigitalOcean during the first quarter valued at about $8,986,000. Assenagon Asset Management S.A. increased its stake in DigitalOcean by 956.0% during the third quarter. Assenagon Asset Management S.A. now owns 150,248 shares of the company's stock worth $20,042,000 after acquiring an additional 136,020 shares during the last quarter. Finally, Norris Financial Group LLC acquired a new stake in DigitalOcean during the first quarter worth about $7,234,000. Institutional investors and hedge funds own 49.77% of the company's stock.

DigitalOcean Stock Down 0.3%

Shares of NYSE:DOCN opened at $72.23 on Monday. The company has a quick ratio of 1.15, a current ratio of 1.15 and a debt-to-equity ratio of 0.61. DigitalOcean Holdings, Inc. has a 52-week low of $41.96 and a 52-week high of $187.50. The company has a 50 day moving average of $116.36 and a two-hundred day moving average of $111.68. The company has a market capitalization of $8.52 billion, a price-to-earnings ratio of 233.00, a price-to-earnings-growth ratio of 89.34 and a beta of 1.69.

DigitalOcean (NYSE:DOCN - Get Free Report) last issued its quarterly earnings data on Tuesday, November 3rd. The company reported $0.45 EPS for the quarter, topping analysts' consensus estimates of $0.32 by $0.13. The firm had revenue of $321.19 million for the quarter, compared to analyst estimates of $306.74 million. DigitalOcean had a net margin of 3.11% and a return on equity of 15.01%. The firm's revenue was up 39.6% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.54 EPS. As a group, analysts forecast that DigitalOcean Holdings, Inc. will post 0.65 earnings per share for the current fiscal year.

DigitalOcean News Roundup

Here are the key news stories impacting DigitalOcean this week:

• Positive Sentiment: DigitalOcean announced a collaboration with Box, which could expand the reach of its cloud services. The announcement provides no further details in the supplied headline. DigitalOcean announces collaboration with Box
• Positive Sentiment: Earlier coverage pointed to higher guidance and AI revenue growth as reasons for investor optimism. DigitalOcean Stock Jumps On Higher Guidance And AI Revenue Growth
• Neutral Sentiment: Goldman Sachs lowered its price target from $178 to $156 but kept a Buy rating, signaling continued optimism alongside a more cautious valuation. Goldman Sachs price-target update
• Negative Sentiment: UBS, Canaccord Genuity and Citigroup were reported to have cut their price targets or issued a more pessimistic outlook, adding pressure to sentiment. Canaccord nevertheless maintained a Buy rating. UBS Group price-target cut Canaccord Genuity price-target cut Citigroup forecast
• Negative Sentiment: Coverage also highlighted a $1 billion offering and argued DOCN could be substantially below fair value after its results. The offering may raise concerns about financing and potential dilution. DigitalOcean Holdings Could Be 62% Below Fair Value Following Results And $1b Offering

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on the company. Stifel Nicolaus set a $130.00 price objective on DigitalOcean in a research note on Tuesday, November 3rd. William Blair reissued an "outperform" rating on shares of DigitalOcean in a research report on Wednesday, July 15th. Weiss Ratings lowered shares of DigitalOcean from a "hold (c+)" rating to a "sell (d+)" rating in a report on Wednesday. Truist Financial began coverage on shares of DigitalOcean in a research report on Thursday, August 27th. They set a "buy" rating and a $175.00 price target on the stock. Finally, UBS Group reduced their price target on shares of DigitalOcean from $105.00 to $100.00 and set a "neutral" rating on the stock in a research report on Wednesday, November 4th. Two analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, DigitalOcean has a consensus rating of "Moderate Buy" and a consensus price target of $141.06.

Insider Activity

In other DigitalOcean news, CFO Matt Steinfort sold 10,000 shares of the firm's stock in a transaction that occurred on Thursday, September 3rd. The stock was sold at an average price of $105.73, for a total transaction of $1,057,300.00. Following the completion of the sale, the chief financial officer owned 503,692 shares in the company, valued at $53,255,355.16. This trade represents a 1.95% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 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, CAO Cherie Barrett sold 4,456 shares of DigitalOcean stock in a transaction that occurred on Thursday, August 13th. The stock was sold at an average price of $132.37, for a total value of $589,840.72. Following the sale, the chief accounting officer owned 65,487 shares in the company, valued at $8,668,514.19. This represents a 6.37% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 18,441 shares of company stock worth $2,068,475. Insiders own 0.96% of the company's stock.

DigitalOcean Company Profile

DigitalOcean Holdings, Inc provides cloud computing services designed primarily for developers, startups, and small and midsize businesses. Founded in 2011, the company focuses on making it easier for customers to build, deploy, and scale applications without managing their own physical infrastructure.

Its platform includes virtual machines known as Droplets, managed Kubernetes, an application platform, managed databases, object storage, and networking and monitoring tools. These services support tasks ranging from hosting websites and applications to developing and running cloud-native software.

DigitalOcean serves customers around the world through its cloud platform and data center infrastructure.

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