Edgestream Partners L.P. Buys New Position in DigitalOcean Holdings, Inc. $DOCN

Key Points

• Edgestream Partners initiated a DigitalOcean position of 36,355 shares valued at approximately $3.1 million. Institutional investors collectively own 49.77% of the company.
• Analysts maintain a broadly positive view, with a consensus rating of “Moderate Buy” and an average price target of $151.93; individual targets range from $165 to $200.
• DigitalOcean exceeded quarterly expectations, reporting $0.44 in EPS versus the $0.27 consensus and $257.9 million in revenue, up 22.4% year over year. Meanwhile, insiders sold $6.2 million of stock over the past 90 days.

Edgestream Partners L.P. bought a new stake in shares of DigitalOcean Holdings, Inc. (NYSE:DOCN - Free Report) in the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor bought 36,355 shares of the company's stock, valued at approximately $3,119,000.

Other hedge funds have also recently added to or reduced their stakes in the company. EverSource Wealth Advisors LLC boosted its stake in shares of DigitalOcean by 14.8% in the 1st quarter. EverSource Wealth Advisors LLC now owns 551 shares of the company's stock valued at $47,000 after purchasing an additional 71 shares during the last quarter. Parallel Advisors LLC raised its stake in DigitalOcean by 66.2% during the first quarter. Parallel Advisors LLC now owns 324 shares of the company's stock worth $28,000 after buying an additional 129 shares during the last quarter. Maryland State Retirement & Pension System raised its stake in DigitalOcean by 1.9% during the fourth 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 holdings 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 period. Finally, CWM LLC boosted its position in DigitalOcean by 1.3% during 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 last quarter. Institutional investors own 49.77% of the company's stock.

Wall Street Analysts Forecast Growth

DOCN has been the subject of several research analyst reports. Oppenheimer set a $190.00 price objective on DigitalOcean in a research report on Wednesday, May 6th. Citigroup upped their target price on DigitalOcean from $180.00 to $185.00 and gave the company a "buy" rating in a research report on Wednesday, July 8th. The Goldman Sachs Group raised their target price on DigitalOcean from $78.00 to $179.00 and gave the stock a "buy" rating in a research note on Wednesday, May 6th. Robert W. Baird began coverage on DigitalOcean in a report on Tuesday, July 21st. They issued an "outperform" rating and a $165.00 target price for the company. Finally, Canaccord Genuity Group reissued a "buy" rating and issued a $200.00 price target on shares of DigitalOcean in a research note on Friday, July 10th. Two analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, DigitalOcean currently has a consensus rating of "Moderate Buy" and an average price target of $151.93.

DigitalOcean Trading Down 2.4%

DOCN opened at $117.28 on Friday. The company has a fifty day moving average price of $147.24 and a two-hundred day moving average price of $106.06. DigitalOcean Holdings, Inc. has a 1-year low of $25.56 and a 1-year high of $187.50. The company has a market cap of $12.24 billion, a P/E ratio of 51.22 and a beta of 1.57. The company has a current ratio of 1.46, a quick ratio of 1.46 and a debt-to-equity ratio of 0.92.

DigitalOcean (NYSE:DOCN - Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The company reported $0.44 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.27 by $0.17. The company had revenue of $257.90 million for 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 business's revenue was up 22.4% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.56 EPS. DigitalOcean has set its Q2 2026 guidance at 0.200-0.230 EPS and its FY 2026 guidance at 1.100-1.200 EPS. Analysts predict that DigitalOcean Holdings, Inc. will post 0.57 EPS for the current fiscal year.

Insider Buying and Selling

In other DigitalOcean news, CFO Matt Steinfort sold 25,000 shares of the stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $152.50, for a total value of $3,812,500.00. Following the transaction, the chief financial officer owned 573,272 shares in the company, valued at approximately $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 Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Hilary Schneider sold 4,338 shares of the stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $156.38, for a total value of $678,376.44. Following the completion of the transaction, the director owned 24,323 shares in the company, valued at approximately $3,803,630.74. The trade was a 15.14% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 39,338 shares of company stock worth $6,191,576. 0.96% of the stock is owned by company insiders.

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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