Legal & General Group Plc Sells 8,027 Shares of DigitalOcean Holdings, Inc. $DOCN

Key Points

• Legal & General Group Plc reduced its DigitalOcean stake by 4.4% in the fourth quarter, selling 8,027 shares and leaving it with 172,551 shares valued at about $8.3 million.
• DigitalOcean reported better-than-expected Q1 results, posting EPS of $0.44 versus the $0.27 consensus and revenue of $257.91 million, up 22.4% year over year.
• Analysts remain broadly bullish on the stock, with a Moderate Buy consensus and an average price target of $146.36, while several firms recently raised their targets sharply.

Legal & General Group Plc cut its stake in shares of DigitalOcean Holdings, Inc. (NYSE:DOCN - Free Report) by 4.4% in the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 172,551 shares of the company's stock after selling 8,027 shares during the quarter. Legal & General Group Plc owned about 0.19% of DigitalOcean worth $8,303,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also recently modified their holdings of DOCN. Allworth Financial LP boosted its position in shares of 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. NBC Securities Inc. bought a new stake in shares of DigitalOcean during the 4th quarter valued at about $32,000. Wilmington Savings Fund Society FSB bought a new stake in shares of DigitalOcean during the 3rd quarter valued at about $37,000. Hantz Financial Services Inc. lifted its position in shares of DigitalOcean by 164.9% during the 4th quarter. Hantz Financial Services Inc. now owns 898 shares of the company's stock valued at $43,000 after buying an additional 559 shares in the last quarter. Finally, Advisory Services Network LLC purchased a new position in shares of DigitalOcean during the 3rd quarter valued at about $54,000. 49.77% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

A number of research firms have recently weighed in on DOCN. Royal Bank Of Canada set a $60.00 price objective on DigitalOcean in a research report on Tuesday, February 24th. Bank of America lifted their price objective on DigitalOcean from $103.00 to $107.00 and gave the stock a "buy" rating in a research note on Thursday, April 9th. Citizens Jmp boosted their target price on DigitalOcean from $83.00 to $105.00 and gave the company a "market outperform" rating in a research report on Thursday, March 26th. Canaccord Genuity Group boosted their target price on DigitalOcean from $120.00 to $200.00 and gave the company a "buy" rating in a research report on Wednesday, May 6th. Finally, Morgan Stanley boosted their price objective on DigitalOcean from $75.00 to $175.00 and gave the company an "overweight" rating in a report on Wednesday, May 6th. One research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $146.36.

DigitalOcean Trading Down 5.9%

Shares of NYSE:DOCN opened at $169.92 on Friday. The business's 50-day moving average is $122.61 and its 200 day moving average is $79.41. DigitalOcean Holdings, Inc. has a 1 year low of $25.56 and a 1 year high of $184.46. The firm has a market capitalization of $17.73 billion, a P/E ratio of 74.20 and a beta of 1.60. The company has a debt-to-equity ratio of 0.92, a current ratio of 1.46 and a quick ratio of 1.46.

DigitalOcean (NYSE:DOCN - Get Free Report) last announced its earnings results on Tuesday, May 5th. The company reported $0.44 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.27 by $0.17. The company had revenue of $257.91 million for the quarter, compared to analyst estimates of $249.76 million. DigitalOcean had a return on equity of 88.86% and a net margin of 24.97%.The firm's quarterly revenue was up 22.4% compared to the same quarter last year. During the same period in the prior year, the company posted $0.56 EPS. DigitalOcean has set its Q2 2026 guidance at 0.200-0.230 EPS and its FY 2026 guidance at 1.100-1.200 EPS. On average, research analysts predict that DigitalOcean Holdings, Inc. will post 0.54 earnings per share for the current fiscal year.

Insider Transactions at DigitalOcean

In other news, Director Hilary Schneider sold 4,338 shares of the stock in a transaction dated Friday, May 15th. The stock was sold at an average price of $156.38, for a total value of $678,376.44. Following the transaction, the director directly owned 24,323 shares of the company's stock, valued at approximately $3,803,630.74. This represents a 15.14% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Matt Steinfort sold 25,000 shares of the stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $152.50, for a total value of $3,812,500.00. Following the completion of the transaction, the chief financial officer directly owned 573,272 shares in the company, valued at $87,423,980. This represents a 4.18% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 39,338 shares of company stock worth $6,191,576 over the last three months. 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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