Jupiter Topco LLC Buys New Stake in DigitalOcean Holdings, Inc. $DOCN

Key Points

• Jupiter Topco LLC purchased 34,376 DigitalOcean shares worth approximately $5.4 million during the second quarter. Several other institutions also initiated positions, with institutional investors collectively owning 49.77% of DOCN.
• Analysts remain broadly bullish, with DigitalOcean holding a consensus “Buy” rating and an average price target of $152.81. Recent targets range from $155 to $200.
• DigitalOcean reported strong quarterly results, including adjusted EPS of $0.45 versus expectations of $0.26 and revenue of $281.18 million, up 28.6% year over year. However, the stock opened at $110.49, below its 50-day moving average of $127.60.

Jupiter Topco LLC purchased a new stake in shares of DigitalOcean Holdings, Inc. (NYSE:DOCN - Free Report) during the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor purchased 34,376 shares of the company's stock, valued at approximately $5,400,000.

Several other institutional investors have also bought and sold shares of the business. Canada Pension Plan Investment Board purchased a new position in shares of DigitalOcean in the 2nd quarter worth $10,992,000. Castleark Management LLC purchased a new stake in shares of DigitalOcean during the 2nd quarter valued at about $5,580,000. Osterweis Capital Management Inc. purchased a new stake in shares of DigitalOcean during the 2nd quarter valued at about $14,374,000. Nicholas Investment Partners LP bought a new position in shares of DigitalOcean in the 2nd quarter valued at about $2,983,000. Finally, Legal & General Group Plc bought a new position in shares of DigitalOcean in the 2nd quarter valued at about $16,502,000. Institutional investors own 49.77% of the company's stock.

Insider Buying and Selling at DigitalOcean

In other DigitalOcean news, Director Warren J. Adelman sold 4,200 shares of the stock in a transaction on Friday, August 7th. The stock was sold at an average price of $124.01, for a total value of $520,842.00. Following the sale, the director owned 67,433 shares in the company, valued at $8,362,366.33. This trade represents a 5.86% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CAO Cherie Barrett sold 4,456 shares of DigitalOcean stock in a transaction on Thursday, August 13th. The stock was sold at an average price of $132.37, for a total value of $589,840.72. Following the sale, the chief accounting officer owned 65,487 shares of the company's stock, valued at approximately $8,668,514.19. This trade represents a 6.37% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.96% of the company's stock.

Analyst Upgrades and Downgrades

Several brokerages have weighed in on DOCN. Citigroup boosted their price objective on DigitalOcean from $185.00 to $190.00 and gave the stock a "buy" rating in a research note on Wednesday, August 5th. Oppenheimer set a $190.00 target price on DigitalOcean in a report on Wednesday, May 6th. Piper Sandler boosted their target price on DigitalOcean from $98.00 to $155.00 and gave the company a "neutral" rating in a research report on Tuesday, May 5th. Canaccord Genuity Group restated a "buy" rating and set a $200.00 price target on shares of DigitalOcean in a report on Friday, July 10th. Finally, Barclays increased their price target on DigitalOcean from $160.00 to $161.00 and gave the company an "overweight" rating in a report on Wednesday, August 5th. Two investment analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and two have issued a Hold rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Buy" and an average price target of $152.81.

DigitalOcean Stock Down 0.6%

Shares of NYSE DOCN opened at $110.49 on Tuesday. DigitalOcean Holdings, Inc. has a 1 year low of $30.89 and a 1 year high of $187.50. The firm has a 50-day simple moving average of $127.60 and a two-hundred day simple moving average of $116.09. The company has a market cap of $11.53 billion, a P/E ratio of 50.45, a PEG ratio of 95.20 and a beta of 1.61. The company has a debt-to-equity ratio of 1.14, a current ratio of 1.31 and a quick ratio of 1.31.

DigitalOcean (NYSE:DOCN - Get Free Report) last released its earnings results on Tuesday, August 4th. The company reported $0.45 EPS for the quarter, beating analysts' consensus estimates of $0.26 by $0.19. DigitalOcean had a return on equity of 31.01% and a net margin of 23.26%.The firm had revenue of $281.18 million for the quarter, compared to analysts' expectations of $279.03 million. During the same quarter in the prior year, the firm posted $0.39 earnings per share. The company's quarterly revenue was up 28.6% on a year-over-year basis. DigitalOcean has set its FY 2026 guidance at 1.350-1.400 EPS and its Q3 2026 guidance at 0.280-0.300 EPS. Research analysts anticipate that DigitalOcean Holdings, Inc. will post 0.63 earnings per share for the current year.

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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