Diversify Advisory Services LLC Makes New Investment in DigitalOcean Holdings, Inc. $DOCN

Key Points

• Diversify Advisory Services initiated a position in DigitalOcean during the second quarter, buying 9,195 shares valued at approximately $1.1 million. Institutional investors and hedge funds collectively own 49.77% of the company.
• DigitalOcean reported quarterly earnings of $0.45 per share, beating estimates of $0.26, while revenue rose 28.6% year over year to $281.18 million. The company issued fiscal 2026 EPS guidance of $1.35–$1.40.
• DOCN shares opened at $116.60 after declining 6.9%, despite analysts maintaining an overall “Buy” rating and a consensus price target of $151.33. Recent insider activity was also negative, with insiders selling 18,656 shares worth $2.81 million in the last quarter.

Diversify Advisory Services LLC purchased a new position in DigitalOcean Holdings, Inc. (NYSE:DOCN - Free Report) in the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 9,195 shares of the company's stock, valued at approximately $1,105,000.

A number of other hedge funds have also recently added to or reduced their stakes in the company. State of New Jersey Common Pension Fund D acquired a new stake in DigitalOcean in the 4th quarter valued at $2,358,000. New York State Teachers Retirement System boosted its holdings in DigitalOcean by 33.0% during the fourth quarter. New York State Teachers Retirement System now owns 49,310 shares of the company's stock worth $2,373,000 after purchasing an additional 12,229 shares during the last quarter. Legato Capital Management LLC bought a new position in shares of DigitalOcean in the fourth quarter valued at approximately $1,365,000. Summit Creek Advisors LLC bought a new position in DigitalOcean in the 4th quarter valued at $7,126,000. Finally, Wealth High Governance Asset Management Ltda. bought a new stake in DigitalOcean in the first quarter worth about $8,986,000. Institutional investors and hedge funds own 49.77% of the company's stock.

Insider Transactions at DigitalOcean

In other news, CAO Cherie Barrett sold 4,456 shares of the business's stock in a transaction 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 completion of the transaction, the chief accounting officer owned 65,487 shares in the company, valued at $8,668,514.19. The trade was a 6.37% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Warren J. Adelman sold 4,200 shares of DigitalOcean stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $124.01, for a total transaction of $520,842.00. Following the completion of the sale, the director owned 67,433 shares of the company's stock, valued at $8,362,366.33. This represents a 5.86% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 18,656 shares of company stock valued at $2,811,383 in the last quarter. 0.96% of the stock is owned by insiders.

DigitalOcean Trading Down 6.9%

DOCN opened at $116.60 on Thursday. The company has a debt-to-equity ratio of 1.14, a current ratio of 1.31 and a quick ratio of 1.31. The firm has a market capitalization of $12.17 billion, a price-to-earnings ratio of 53.24, a PEG ratio of 107.22 and a beta of 1.61. The business has a 50 day simple moving average of $137.14 and a two-hundred day simple moving average of $113.05. DigitalOcean Holdings, Inc. has a one year low of $29.62 and a one year high of $187.50.

DigitalOcean (NYSE:DOCN - Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The company reported $0.45 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.26 by $0.19. The company had revenue of $281.18 million during the quarter, compared to the consensus estimate of $279.03 million. DigitalOcean had a net margin of 23.26% and a return on equity of 31.01%. DigitalOcean's revenue was up 28.6% on a year-over-year basis. During the same period in the prior year, the firm earned $0.39 earnings per share. DigitalOcean has set its FY 2026 guidance at 1.350-1.400 EPS and its Q3 2026 guidance at 0.280-0.300 EPS. Analysts predict that DigitalOcean Holdings, Inc. will post 0.63 EPS for the current year.

Analysts Set New Price Targets

DOCN has been the subject of a number of recent research reports. Morgan Stanley raised their target price on DigitalOcean from $75.00 to $175.00 and gave the stock an "overweight" rating in a research report on Wednesday, May 6th. Piper Sandler boosted 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 restated a "buy" rating and issued a $200.00 target price on shares of DigitalOcean in a research note on Friday, July 10th. UBS Group decreased their price target on shares of DigitalOcean from $155.00 to $140.00 and set a "neutral" rating on the stock in a report on Wednesday, August 5th. Finally, Stifel Nicolaus raised DigitalOcean from a "hold" rating to a "buy" rating and raised their price objective for the company from $135.00 to $160.00 in a report on Tuesday, July 21st. Two analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Buy" and a consensus price target of $151.33.

DigitalOcean Profile

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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