Engineers Gate Manager LP Purchases New Position in DigitalOcean Holdings, Inc. $DOCN

Key Points

• Engineers Gate Manager LP initiated a DigitalOcean position worth approximately $1.65 million in the second quarter, while institutional investors collectively own 49.77% of the company.
• DigitalOcean reported quarterly EPS of $0.45, beating estimates of $0.26, while revenue rose 28.6% year over year to $281.18 million. The stock opened at $123.66, and analysts maintain a “Moderate Buy” consensus with an average price target of $152.81.
• Insiders sold 22,641 shares worth $2.59 million during the past quarter, including sales by CFO Matt Steinfort and Director Warren J. Adelman; the CFO’s transaction was conducted under a pre-arranged plan to cover tax obligations.

Engineers Gate Manager LP purchased a new stake in DigitalOcean Holdings, Inc. (NYSE:DOCN - Free Report) in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 10,487 shares of the company's stock, valued at approximately $1,647,000.

Several other hedge funds have also bought and sold shares of the stock. Integrated Wealth Concepts LLC purchased a new position in shares of DigitalOcean during the 2nd quarter valued at approximately $232,000. NewEdge Advisors LLC raised its position in shares of DigitalOcean by 833.8% in the second quarter. NewEdge Advisors LLC now owns 3,315 shares of the company's stock worth $521,000 after acquiring an additional 2,960 shares during the period. IFP Advisors Inc boosted its stake in shares of DigitalOcean by 44,500.0% during the 2nd quarter. IFP Advisors Inc now owns 446 shares of the company's stock worth $70,000 after acquiring an additional 445 shares in the last quarter. Spark Investment Management LLC purchased a new stake in shares of DigitalOcean during the 2nd quarter worth about $267,000. Finally, Arizona State Retirement System grew its position in shares of DigitalOcean by 2.2% during the 2nd quarter. Arizona State Retirement System now owns 21,511 shares of the company's stock valued at $3,378,000 after acquiring an additional 460 shares during the period. Hedge funds and other institutional investors own 49.77% of the company's stock.

DigitalOcean Stock Up 4.9%

DOCN opened at $123.66 on Thursday. The company has a market cap of $12.90 billion, a PE ratio of 56.46, a price-to-earnings-growth ratio of 100.89 and a beta of 1.57. DigitalOcean Holdings, Inc. has a twelve month low of $33.69 and a twelve month high of $187.50. The company has a 50-day moving average price of $121.87 and a 200 day moving average price of $120.72. 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 (NYSE:DOCN - Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The company reported $0.45 earnings per share (EPS) 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 company had revenue of $281.18 million for the quarter, compared to analysts' expectations of $279.03 million. During the same period in the previous year, the firm posted $0.39 EPS. DigitalOcean's revenue 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. Sell-side analysts expect that DigitalOcean Holdings, Inc. will post 0.63 earnings per share for the current fiscal year.

Analyst Ratings Changes

Several brokerages recently weighed in on DOCN. William Blair restated an "outperform" rating on shares of DigitalOcean in a research note on Wednesday, July 15th. Robert W. Baird began coverage on DigitalOcean in a report on Tuesday, July 21st. They issued an "outperform" rating and a $165.00 price objective on the stock. Barclays boosted their price objective on DigitalOcean from $160.00 to $161.00 and gave the company an "overweight" rating in a research report on Wednesday, August 5th. Canaccord Genuity Group reaffirmed a "buy" rating and set a $200.00 target price on shares of DigitalOcean in a research note on Friday, July 10th. Finally, UBS Group decreased their target price on DigitalOcean from $155.00 to $140.00 and set a "neutral" rating on the stock in a research report on Wednesday, August 5th. Two equities research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $152.81.

Insider Activity

In other DigitalOcean news, CFO Matt Steinfort sold 10,000 shares of the firm's stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $105.73, for a total value of $1,057,300.00. Following the transaction, the chief financial officer owned 503,692 shares in the company, valued at approximately $53,255,355.16. This trade represents a 1.95% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible 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, Director Warren J. Adelman sold 4,200 shares of the firm's stock in a transaction on Friday, August 7th. The shares were sold at an average price of $124.01, for a total value of $520,842.00. Following the completion of the transaction, the director owned 67,433 shares in the company, valued at $8,362,366.33. The trade was a 5.86% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 22,641 shares of company stock worth $2,589,317 over the last quarter. 0.96% of the stock is currently owned by corporate insiders.

DigitalOcean Company Profile

DigitalOcean Holdings, Inc provides cloud computing services designed primarily for developers, startups, and small and medium-sized businesses. Its platform offers on-demand infrastructure and developer tools intended to simplify the process of building, deploying, and scaling applications.

The company's products include virtual machines known as Droplets, managed Kubernetes, managed databases, object storage through Spaces, block storage, networking services, and App Platform, a platform-as-a-service offering for application deployment.

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