Kestra Private Wealth Services LLC Acquires Shares of 6,595 DigitalOcean Holdings, Inc. $DOCN

Key Points

• Kestra Private Wealth Services LLC acquired a new stake of 6,595 shares in DigitalOcean (NYSE:DOCN) in Q4, valued at approximately $317,000.
• Q1 results topped expectations — $0.44 EPS vs $0.27 consensus and $257.9M revenue (up 22.4% YoY) — and raised Q2/FY26 guidance, fueling an AI-driven rally that pushed the stock to fresh highs (opened at $161.05).
• Analysts raised price targets (e.g., UBS to $160, Oppenheimer $190) and the stock carries a "Moderate Buy" consensus with an average target of $136.08, while institutional investors own about 49.77% of shares.

Kestra Private Wealth Services LLC acquired a new stake in shares of DigitalOcean Holdings, Inc. (NYSE:DOCN - Free Report) in the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund acquired 6,595 shares of the company's stock, valued at approximately $317,000.

A number of other large investors have also added to or reduced their stakes in the stock. Allworth Financial LP raised its stake in DigitalOcean by 54.4% during the third quarter. Allworth Financial LP now owns 724 shares of the company's stock valued at $25,000 after buying an additional 255 shares during the last quarter. CWM LLC raised its stake in shares of DigitalOcean by 1.3% in the fourth quarter. CWM LLC now owns 20,971 shares of the company's stock worth $1,009,000 after purchasing an additional 270 shares during the last quarter. GAMMA Investing LLC raised its stake in shares of DigitalOcean by 33.8% in the fourth quarter. GAMMA Investing LLC now owns 1,581 shares of the company's stock worth $76,000 after purchasing an additional 399 shares during the last quarter. Man Group plc raised its stake in shares of DigitalOcean by 0.5% in the second quarter. Man Group plc now owns 82,485 shares of the company's stock worth $2,356,000 after purchasing an additional 420 shares during the last quarter. Finally, Sumitomo Mitsui Trust Group Inc. raised its stake in shares of DigitalOcean by 2.3% in the fourth quarter. Sumitomo Mitsui Trust Group Inc. now owns 19,319 shares of the company's stock worth $930,000 after purchasing an additional 435 shares during the last quarter. Hedge funds and other institutional investors own 49.77% of the company's stock.

DigitalOcean Stock Up 5.4%

DigitalOcean stock opened at $161.05 on Thursday. The stock has a market cap of $16.81 billion, a PE ratio of 70.33 and a beta of 1.42. The company has a debt-to-equity ratio of 0.92, a quick ratio of 0.69 and a current ratio of 1.46. DigitalOcean Holdings, Inc. has a one year low of $25.56 and a one year high of $161.96. The stock has a fifty day moving average of $81.78 and a 200 day moving average of $61.47.

DigitalOcean (NYSE:DOCN - Get Free Report) last posted its quarterly earnings data on Tuesday, May 5th. The company reported $0.44 EPS for the quarter, beating analysts' consensus estimates of $0.27 by $0.17. The company had revenue of $257.91 million during the quarter, compared to analysts' expectations of $249.76 million. DigitalOcean had a return on equity of 88.86% and a net margin of 24.97%.DigitalOcean's revenue for the quarter was up 22.4% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.56 earnings per share. DigitalOcean has set its Q2 2026 guidance at 0.200-0.230 EPS and its FY 2026 guidance at 1.100-1.200 EPS. As a group, sell-side analysts predict that DigitalOcean Holdings, Inc. will post 0.4 EPS for the current year.

Key Headlines Impacting DigitalOcean

Here are the key news stories impacting DigitalOcean this week:

• Positive Sentiment: Q1 results and guidance beat — DigitalOcean reported $0.44 EPS and $257.9M revenue (both above consensus) and raised FY26 EPS and Q2 revenue guidance, a catalyst behind the rally. DigitalOcean Stock Soars 18% After Q1 Double Beat, Raises FY26 Guidance
• Positive Sentiment: Beating the details — the quarter showed 22% YoY revenue growth and margin expansion, with slide deck and call underlining stronger cash flow prospects. DigitalOcean Earnings Release & Conference Call
• Positive Sentiment: AI narrative fueling demand — management and analysts highlighted DigitalOcean’s capacity expansion and positioning for AI-native customers as a multi-year growth driver. DigitalOcean: Massive Momentum As Capacity Expands
• Positive Sentiment: Analysts raise forecasts — multiple analysts lifted estimates after Q1, citing stronger revenue trajectory and higher FY26 guidance. Analyst upgrades and raised targets helped push the stock to fresh highs. DigitalOcean Analysts Increase Their Forecasts Following Strong Q1 Results
• Positive Sentiment: Market momentum — coverage pieces and headlines note an AI-driven rally and the stock reached an all-time high on the strong results and outlook. DigitalOcean (DOCN) Hits All-Time High on Stellar Revenues, Upbeat Q2
• Neutral Sentiment: UBS raised its price target from $105 to $160 but kept a "neutral" rating, implying limited near-term upside per that analyst despite the higher target. Benzinga: UBS Raises Price Target
• Neutral Sentiment: Analytical pieces examine sustainability — market write-ups ask how far the AI-fueled rally can run, useful context for investors weighing growth vs. valuation. DigitalOcean’s AI Surge: How Far Can This Rally Go?
• Negative Sentiment: EPS comparison and valuation questions — while Q1 beat, EPS declined versus the prior year ($0.56 last year vs $0.44 this quarter), and some investors may be cautious as valuation has expanded following the run. Zacks: DOCN Surpasses Q1 Earnings and Revenue Estimates

Wall Street Analyst Weigh In

DOCN has been the subject of several recent analyst reports. UBS Group boosted their price target on DigitalOcean from $105.00 to $160.00 and gave the stock a "neutral" rating in a research note on Wednesday. Weiss Ratings restated a "hold (c+)" rating on shares of DigitalOcean in a research note on Friday, March 27th. Oppenheimer set a $190.00 price target on DigitalOcean in a research note on Wednesday. Stifel Nicolaus set a $57.00 price target on DigitalOcean in a research note on Tuesday, February 24th. Finally, Citizens Jmp boosted their price target on DigitalOcean from $83.00 to $105.00 and gave the stock a "market outperform" rating in a research note on Thursday, March 26th. Nine research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat.com, DigitalOcean currently has an average rating of "Moderate Buy" and a consensus price target of $136.08.

Insider Transactions at DigitalOcean

In other DigitalOcean news, CAO Cherie Barrett sold 22,000 shares of the company's stock in a transaction dated Monday, March 2nd. The stock was sold at an average price of $54.77, for a total value of $1,204,940.00. Following the completion of the sale, the chief accounting officer owned 62,469 shares in the company, valued at $3,421,427.13. This represents a 26.05% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, CFO Matt Steinfort sold 20,000 shares of the company's stock in a transaction dated Tuesday, March 3rd. The stock was sold at an average price of $55.40, for a total value of $1,108,000.00. Following the completion of the sale, the chief financial officer owned 545,916 shares of the company's stock, valued at approximately $30,243,746.40. The trade was a 3.53% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 0.96% of the company's stock.

DigitalOcean Company Profile

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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