Kovitz Investment Group Partners LLC Purchases Shares of 13,364 DigitalOcean Holdings, Inc. $DOCN

Key Points

• Kovitz Investment Group Partners LLC acquired a new position in DigitalOcean Holdings, Inc., purchasing 13,364 shares valued at approximately $446,000 during Q1.
• DigitalOcean's recent earnings report highlighted a strong performance, with an EPS of $0.59 surpassing estimates, alongside a 13.6% year-over-year revenue increase.
• Wall Street analysts have mixed views on DigitalOcean, with a consensus "Hold" rating and target prices ranging from $32 to $40, as various firms adjust their assessments of the stock.

Kovitz Investment Group Partners LLC bought a new position in shares of DigitalOcean Holdings, Inc. (NYSE:DOCN - Free Report) during the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund bought 13,364 shares of the company's stock, valued at approximately $446,000.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Russell Investments Group Ltd. grew its holdings in shares of DigitalOcean by 75.5% during the first quarter. Russell Investments Group Ltd. now owns 285,079 shares of the company's stock worth $9,519,000 after buying an additional 122,612 shares during the last quarter. Public Sector Pension Investment Board grew its holdings in shares of DigitalOcean by 27.5% during the first quarter. Public Sector Pension Investment Board now owns 201,955 shares of the company's stock worth $6,743,000 after buying an additional 43,539 shares during the last quarter. Nuveen LLC purchased a new position in shares of DigitalOcean during the first quarter worth about $5,737,000. Entropy Technologies LP purchased a new position in shares of DigitalOcean during the first quarter worth about $551,000. Finally, Covestor Ltd grew its holdings in shares of DigitalOcean by 35.8% during the first quarter. Covestor Ltd now owns 3,182 shares of the company's stock worth $106,000 after buying an additional 838 shares during the last quarter. Institutional investors and hedge funds own 49.77% of the company's stock.

DigitalOcean Stock Performance

DOCN traded up $1.5480 during trading on Friday, reaching $31.5380. The company's stock had a trading volume of 1,787,689 shares, compared to its average volume of 3,724,420. The company's fifty day moving average price is $29.37 and its 200-day moving average price is $32.17. The company has a market capitalization of $2.87 billion, a price-to-earnings ratio of 24.26, a price-to-earnings-growth ratio of 1.84 and a beta of 1.75. DigitalOcean Holdings, Inc. has a 52-week low of $25.45 and a 52-week high of $47.02.

DigitalOcean (NYSE:DOCN - Get Free Report) last announced its quarterly 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. The business 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%.The company's quarterly revenue was up 13.6% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.48 EPS. DigitalOcean has set its FY 2025 guidance at 2.050-2.100 EPS. Q3 2025 guidance at 0.450-0.500 EPS. Equities analysts predict that DigitalOcean Holdings, Inc. will post 1.01 earnings per share for the current year.

Insider Activity

In related news, insider Bratin Saha sold 3,461 shares of DigitalOcean stock in a transaction that occurred on Wednesday, June 18th. The stock was sold at an average price of $27.77, for a total transaction of $96,111.97. Following the completion of the transaction, the insider directly owned 294,546 shares in the company, valued at $8,179,542.42. The trade was a 1.16% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.96% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on the company. UBS Group lowered their price target on DigitalOcean from $44.00 to $32.00 and set a "neutral" rating on the stock in a report on Thursday, May 8th. Barclays raised their price target on DigitalOcean from $38.00 to $40.00 and gave the stock an "overweight" rating in a report on Wednesday, August 6th. Canaccord Genuity Group raised their price target on DigitalOcean from $45.00 to $49.00 and gave the stock a "buy" rating in a report on Wednesday, August 6th. Needham & Company LLC reaffirmed a "hold" rating on shares of DigitalOcean in a report on Tuesday, May 6th. Finally, Morgan Stanley lifted their price objective on DigitalOcean from $41.00 to $44.00 and gave the company an "overweight" 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 assigned a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $41.45.

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).