DigitalOcean Holdings, Inc. $DOCN Stake Decreased by Viking Fund Management LLC

Key Points

• Viking Fund Management reduced its DigitalOcean stake by 20.6% in the third quarter, selling 14,000 shares and retaining 54,000 shares valued at approximately $7.2 million. Institutional investors collectively own 49.77% of the company.
• DigitalOcean reported quarterly EPS of $0.45, exceeding the $0.26 consensus estimate, while revenue rose 28.6% year over year to $281.18 million. The company also issued fiscal 2026 EPS guidance of $1.35–$1.40.
• Analyst sentiment remains positive, with a consensus rating of “Moderate Buy” and an average price target of $154.69, despite recent target reductions from some firms. Shares opened at $109.09, below their 50-day and 200-day moving averages.

Viking Fund Management LLC decreased its holdings in DigitalOcean Holdings, Inc. (NYSE:DOCN - Free Report) by 20.6% during the third quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 54,000 shares of the company's stock after selling 14,000 shares during the quarter. Viking Fund Management LLC owned 0.05% of DigitalOcean worth $7,203,000 at the end of the most recent reporting period.

Several other large investors also recently added to or reduced their stakes in the business. Bank of America Corp DE bought a new position in DigitalOcean in the second quarter worth approximately $241,945,000. First Trust Advisors LP boosted its stake in shares of DigitalOcean by 9.3% during the 1st quarter. First Trust Advisors LP now owns 1,441,151 shares of the company's stock worth $123,622,000 after acquiring an additional 122,675 shares during the last quarter. Bank of New York Mellon Corp bought a new stake in shares of DigitalOcean during the 2nd quarter valued at $98,011,000. Principal Financial Group Inc. grew its position in shares of DigitalOcean by 155.3% during the 1st quarter. Principal Financial Group Inc. now owns 1,108,420 shares of the company's stock valued at $95,080,000 after acquiring an additional 674,231 shares during the period. Finally, Allspring Global Investments Holdings LLC grew its position in shares of DigitalOcean by 81.3% during the 1st quarter. Allspring Global Investments Holdings LLC now owns 683,707 shares of the company's stock valued at $59,947,000 after acquiring an additional 306,529 shares during the period. 49.77% of the stock is currently owned by institutional investors.

DigitalOcean Price Performance

Shares of DigitalOcean stock opened at $109.09 on Thursday. The stock's 50-day simple moving average is $125.82 and its 200-day simple moving average is $129.80. The company has a quick ratio of 1.31, a current ratio of 1.31 and a debt-to-equity ratio of 1.14. DigitalOcean Holdings, Inc. has a 52 week low of $37.83 and a 52 week high of $187.50. The company has a market capitalization of $11.38 billion, a price-to-earnings ratio of 49.81, a PEG ratio of 109.02 and a beta of 1.70.

DigitalOcean (NYSE:DOCN - Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The company reported $0.45 earnings per share for the quarter, topping the consensus estimate of $0.26 by $0.19. DigitalOcean had a return on equity of 31.01% and a net margin of 23.26%. The business had revenue of $281.18 million during the quarter, compared to the consensus estimate of $279.03 million. During the same period in the prior year, the company posted $0.39 EPS. The firm's revenue for the quarter was up 28.6% compared to the same quarter last year. DigitalOcean has set its FY 2026 guidance at 1.350-1.400 EPS and its Q3 2026 guidance at 0.280-0.300 EPS. As a group, analysts expect that DigitalOcean Holdings, Inc. will post 0.64 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, Director Warren J. Adelman sold 4,200 shares of the company's stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $124.01, for a total transaction of $520,842.00. Following the sale, the director directly owned 67,433 shares in the company, valued at approximately $8,362,366.33. This represents a 5.86% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Matt Steinfort sold 10,000 shares of the stock in a transaction dated Thursday, September 3rd. The shares were sold at an average price of $105.73, for a total transaction of $1,057,300.00. Following the completion of the transaction, the chief financial officer directly owned 503,692 shares of the company's stock, valued at approximately $53,255,355.16. The trade was a 1.95% decrease in their position. 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 22,641 shares of company stock valued at $2,589,317 in the last three months. Corporate insiders own 0.96% of the company's stock.

Analysts Set New Price Targets

Several research firms have recently commented on DOCN. Stifel Nicolaus upgraded DigitalOcean from a "hold" rating to a "buy" rating and upped their price objective for the stock from $135.00 to $160.00 in a research note on Tuesday, July 21st. Truist Financial began coverage on DigitalOcean in a research report on Thursday, August 27th. They set a "buy" rating and a $175.00 target price on the stock. KeyCorp reissued an "overweight" rating on shares of DigitalOcean in a report on Tuesday. UBS Group cut their price target on DigitalOcean from $155.00 to $140.00 and set a "neutral" rating for the company in a report on Wednesday, August 5th. Finally, Citigroup restated a "market outperform" rating on shares of DigitalOcean in a research report on Thursday. One analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $154.69.

About DigitalOcean

DigitalOcean Holdings, Inc NYSE: DOCN provides cloud computing services designed primarily for developers, startups, and small and midsize businesses. Its platform offers on-demand infrastructure and software tools intended to simplify the development, deployment, and management of applications.

The company's services include cloud compute through Droplets, managed Kubernetes, managed databases, object and block storage, networking, and the App Platform for deploying applications. DigitalOcean also provides developer tools, tutorials, support, and other resources intended to help customers build and scale digital products without managing traditional data-center infrastructure.

Founded in 2011 and headquartered in New York City, DigitalOcean serves customers internationally through cloud infrastructure and data-center regions located in North America, Europe, and Asia.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.