DigitalOcean Holdings, Inc. $DOCN Shares Sold by Invesco Ltd.

Key Points

• Invesco Ltd. significantly reduced its stake in DigitalOcean Holdings, Inc. by 72.5%, selling over 3.5 million shares during the first quarter and now holding about 1.47% of the company.
• DigitalOcean reported earnings of $0.59 per share for the last quarter, surpassing analysts' estimates, with a 13.6% year-over-year revenue increase to $218.70 million.
• Equities analysts have differing views on DigitalOcean, with one investment analyst rating it as a sell, while others maintain buy ratings, resulting in a consensus rating of "Hold" and an average price target of $41.45.

Invesco Ltd. trimmed its stake in DigitalOcean Holdings, Inc. (NYSE:DOCN - Free Report) by 72.5% during the first quarter, according to its most recent disclosure with the SEC. The fund owned 1,336,647 shares of the company's stock after selling 3,520,383 shares during the quarter. Invesco Ltd. owned approximately 1.47% of DigitalOcean worth $44,631,000 as of its most recent SEC filing.

Other hedge funds also recently added to or reduced their stakes in the company. GAMMA Investing LLC lifted 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 buying an additional 820 shares during the last quarter. Farther Finance Advisors LLC lifted its stake in DigitalOcean by 135,100.0% in the first quarter. Farther Finance Advisors LLC now owns 1,352 shares of the company's stock valued at $46,000 after buying an additional 1,351 shares during the last quarter. Covestor Ltd lifted 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 buying an additional 838 shares during the last quarter. Canada Pension Plan Investment Board bought a new stake in DigitalOcean in the fourth quarter valued at $133,000. Finally, Cerity Partners LLC bought a new stake in DigitalOcean in the first quarter valued at $223,000. 49.77% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on the company. Needham & Company LLC reiterated a "hold" rating on shares of DigitalOcean in a research note on Tuesday, May 6th. Citigroup cut their price objective on shares of DigitalOcean from $50.00 to $40.00 and set a "buy" rating on the stock in a research note on Wednesday, May 7th. Morgan Stanley lifted their price objective on shares of DigitalOcean from $41.00 to $44.00 and gave the company an "overweight" rating in a research note on Wednesday, August 6th. The Goldman Sachs Group cut their price objective on shares of DigitalOcean from $46.00 to $41.00 and set a "buy" rating on the stock in a research note on Wednesday, May 7th. Finally, Canaccord Genuity Group lifted their price objective on shares of DigitalOcean from $45.00 to $49.00 and gave the company a "buy" rating in a research note on Wednesday, August 6th. Six investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, DigitalOcean presently has a consensus rating of "Hold" and a consensus target price of $41.45.

Insider Transactions at DigitalOcean

In related news, insider Bratin Saha sold 3,461 shares of DigitalOcean stock in a transaction dated Wednesday, June 18th. The stock was sold at an average price of $27.77, for a total transaction of $96,111.97. Following the transaction, the insider directly owned 294,546 shares of the company's stock, valued at $8,179,542.42. The trade was a 1.16% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 0.96% of the stock is currently owned by insiders.

DigitalOcean Trading Up 4.6%

NYSE:DOCN traded up $1.3890 during mid-day trading on Friday, reaching $31.3790. 419,562 shares of the stock were exchanged, compared to its average volume of 1,724,320. The business has a fifty day moving average price of $29.27 and a 200 day moving average price of $32.31. The firm has a market capitalization of $2.86 billion, a PE ratio of 24.11, a PEG ratio of 1.76 and a beta of 1.75. DigitalOcean Holdings, Inc. has a 1-year low of $25.45 and a 1-year high of $47.02.

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