Jacobs Levy Equity Management Inc. Sells 53,246 Shares of DigitalOcean Holdings, Inc. $DOCN

Key Points

• Jacobs Levy Equity Management Inc. has reduced its stake in DigitalOcean Holdings by 3.3%, now holding 1,575,749 shares valued at approximately $52.6 million.
• Other hedge funds, such as Fuller & Thaler Asset Management Inc. and Russell Investments Group Ltd., have increased their positions in DigitalOcean, with Fuller & Thaler boosting theirs by 28.6%.
• DigitalOcean's latest quarterly earnings showed an EPS of $0.59, surpassing estimates, and the company announced a FY 2025 guidance of 2.050-2.100 EPS.

Jacobs Levy Equity Management Inc. trimmed its holdings in shares of DigitalOcean Holdings, Inc. (NYSE:DOCN - Free Report) by 3.3% in the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 1,575,749 shares of the company's stock after selling 53,246 shares during the period. Jacobs Levy Equity Management Inc. owned about 1.73% of DigitalOcean worth $52,614,000 at the end of the most recent reporting period.

Several other institutional investors have also added to or reduced their stakes in the business. Focus Partners Wealth boosted its holdings in shares of DigitalOcean by 2.8% during the fourth quarter. Focus Partners Wealth now owns 12,455 shares of the company's stock worth $424,000 after purchasing an additional 338 shares during the period. Advisors Asset Management Inc. boosted its holdings in shares of DigitalOcean by 39.6% during the first quarter. Advisors Asset Management Inc. now owns 2,229 shares of the company's stock worth $74,000 after purchasing an additional 632 shares during the period. BSW Wealth Partners boosted its holdings in shares of DigitalOcean by 4.8% during the first quarter. BSW Wealth Partners now owns 15,256 shares of the company's stock worth $509,000 after purchasing an additional 700 shares during the period. CWM LLC boosted its holdings in shares of DigitalOcean by 4.7% during the first quarter. CWM LLC now owns 17,802 shares of the company's stock worth $594,000 after purchasing an additional 799 shares during the period. Finally, GAMMA Investing LLC boosted its holdings in shares of DigitalOcean by 336.1% during the first quarter. GAMMA Investing LLC now owns 1,064 shares of the company's stock worth $36,000 after purchasing an additional 820 shares during the period. 49.77% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

DOCN has been the subject of a number of analyst reports. Morgan Stanley increased their target price on shares of DigitalOcean from $41.00 to $44.00 and gave the stock an "overweight" rating in a report on Wednesday, August 6th. Wall Street Zen upgraded shares of DigitalOcean from a "hold" rating to a "buy" rating in a report on Sunday, June 29th. Barclays raised their price objective on shares of DigitalOcean from $38.00 to $40.00 and gave the stock an "overweight" rating in a report on Wednesday, August 6th. Stifel Nicolaus set a $36.00 price objective on shares of DigitalOcean in a report on Tuesday, August 5th. Finally, Canaccord Genuity Group raised their price objective on shares of DigitalOcean from $45.00 to $49.00 and gave the stock a "buy" rating in a report on Wednesday, August 6th. Six research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $41.45.

DigitalOcean Stock Down 0.3%

Shares of NYSE DOCN traded down $0.09 on Wednesday, reaching $34.23. 2,693,345 shares of the company's stock traded hands, compared to its average volume of 1,768,741. DigitalOcean Holdings, Inc. has a 12 month low of $25.45 and a 12 month high of $47.02. The business's 50 day simple moving average is $30.44 and its two-hundred day simple moving average is $31.17. The company has a market cap of $3.12 billion, a price-to-earnings ratio of 26.33, a price-to-earnings-growth ratio of 1.89 and a beta of 1.77.

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

Insider Buying and Selling at DigitalOcean

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

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).