DigitalOcean Holdings, Inc. $DOCN Stock Holdings Lifted by Graham Capital Management L.P.

Key Points

• Graham Capital Management L.P. increased its holdings in DigitalOcean Holdings, Inc. by 284.0%, purchasing 29,061 shares during the first quarter, bringing its total to 39,294 shares valued at $1.31 million.
• DigitalOcean's stock received mixed analyst ratings, with a consensus of six buy ratings, five holds, and one sell, while target prices range from $36.00 to $50.00.
• The company reported a 13.6% increase in revenue year-over-year during its latest earnings call, with a net margin of 15.18% and EPS of $0.59, surpassing analysts' expectations.

Graham Capital Management L.P. increased its position in DigitalOcean Holdings, Inc. (NYSE:DOCN - Free Report) by 284.0% in the first quarter, according to its most recent disclosure with the SEC. The institutional investor owned 39,294 shares of the company's stock after purchasing an additional 29,061 shares during the period. Graham Capital Management L.P.'s holdings in DigitalOcean were worth $1,312,000 at the end of the most recent reporting period.

Other hedge funds have also bought and sold shares of the company. Focus Partners Wealth boosted its stake in DigitalOcean by 2.8% in the fourth quarter. Focus Partners Wealth now owns 12,455 shares of the company's stock valued at $424,000 after acquiring an additional 338 shares during the period. BSW Wealth Partners boosted its stake in DigitalOcean by 4.8% in the first quarter. BSW Wealth Partners now owns 15,256 shares of the company's stock valued at $509,000 after acquiring an additional 700 shares during the period. CWM LLC boosted its stake in DigitalOcean by 4.7% in the first quarter. CWM LLC now owns 17,802 shares of the company's stock valued at $594,000 after acquiring an additional 799 shares during the period. GAMMA Investing LLC boosted its stake in DigitalOcean by 336.1% in the first quarter. GAMMA Investing LLC now owns 1,064 shares of the company's stock valued at $36,000 after acquiring an additional 820 shares during the period. Finally, Covestor Ltd boosted its stake in DigitalOcean by 35.8% in the first quarter. Covestor Ltd now owns 3,182 shares of the company's stock valued at $106,000 after acquiring an additional 838 shares during the period. 49.77% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of equities analysts have commented on DOCN shares. Stifel Nicolaus set a $36.00 target price on DigitalOcean in a research note on Tuesday, August 5th. Morgan Stanley lifted their target price on DigitalOcean from $41.00 to $44.00 and gave the company an "overweight" rating in a research note on Wednesday, August 6th. Barclays lifted their target price on DigitalOcean from $38.00 to $40.00 and gave the company an "overweight" rating in a research note on Wednesday, August 6th. UBS Group decreased their target price on DigitalOcean from $44.00 to $32.00 and set a "neutral" rating for the company in a research note on Thursday, May 8th. Finally, Wall Street Zen upgraded DigitalOcean from a "hold" rating to a "buy" rating in a research report on Sunday, June 29th. Six investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus price target of $41.45.

Insider Activity

In other DigitalOcean news, insider Bratin Saha sold 13,010 shares of the company's stock in a transaction on Wednesday, September 3rd. The stock was sold at an average price of $31.87, for a total value of $414,628.70. Following the transaction, the insider owned 269,465 shares of the company's stock, valued at approximately $8,587,849.55. This represents a 4.61% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 0.96% of the company's stock.

DigitalOcean Trading Up 1.9%

NYSE:DOCN traded up $0.60 during midday trading on Friday, hitting $32.72. 2,985,463 shares of the stock were exchanged, compared to its average volume of 2,965,272. DigitalOcean Holdings, Inc. has a one year low of $25.45 and a one year high of $47.02. The company has a market capitalization of $2.98 billion, a price-to-earnings ratio of 25.17, a P/E/G ratio of 1.83 and a beta of 1.77. The business has a 50-day moving average price of $30.22 and a two-hundred day moving average price of $31.36.

DigitalOcean (NYSE:DOCN - Get Free Report) last announced its earnings results on Tuesday, August 5th. The company reported $0.59 EPS for the quarter, topping the consensus estimate of $0.47 by $0.12. DigitalOcean had a negative return on equity of 73.19% and a net margin of 15.18%.The firm had revenue of $218.70 million for the quarter, compared to analysts' expectations of $216.62 million. During the same quarter in the previous year, the company earned $0.48 earnings per share. The firm's quarterly revenue was up 13.6% compared to the same quarter last year. DigitalOcean has set its FY 2025 guidance at 2.050-2.100 EPS. Q3 2025 guidance at 0.450-0.500 EPS. Sell-side analysts forecast that DigitalOcean Holdings, Inc. will post 1.01 EPS for the current fiscal year.

About DigitalOcean

DigitalOcean Holdings, Inc, through its subsidiaries, operates a cloud computing platform in North America, Europe, Asia, and internationally. The company's platform provides on-demand infrastructure and platform tools for developers, start-ups, and small and growing digital businesses. It also offers infrastructure-as-a-service (IaaS) solutions comprising compute and storage services, as well as networking projects, including Cloud Firewalls software, Managed Load Balancers software, and Virtual Private Cloud (VPC).