Legato Capital Management LLC Makes New $1.37 Million Investment in DigitalOcean Holdings, Inc. $DOCN

Key Points

• Legato Capital Management initiated a new position in DigitalOcean, buying 28,370 shares valued at about $1.37 million in the fourth quarter.
• Analysts remain generally upbeat on the stock, with nine Buy ratings and three Hold ratings and a consensus Moderate Buy target price of $142.23.
• DigitalOcean reported better-than-expected quarterly results, with EPS of $0.44 versus $0.27 expected and revenue of $257.91 million, though insiders have sold shares recently, including CFO Matt Steinfort.

Legato Capital Management LLC acquired a new position in shares of DigitalOcean Holdings, Inc. (NYSE:DOCN - Free Report) in the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm acquired 28,370 shares of the company's stock, valued at approximately $1,365,000.

Other hedge funds have also recently bought and sold shares of the company. NBC Securities Inc. acquired a new stake in DigitalOcean during the fourth quarter worth approximately $32,000. Allworth Financial LP lifted its position in DigitalOcean by 54.4% during the third quarter. Allworth Financial LP now owns 724 shares of the company's stock worth $25,000 after acquiring an additional 255 shares during the last quarter. Wilmington Savings Fund Society FSB acquired a new stake in DigitalOcean during the third quarter worth approximately $37,000. GAMMA Investing LLC lifted its position in DigitalOcean by 33.8% during the fourth quarter. GAMMA Investing LLC now owns 1,581 shares of the company's stock worth $76,000 after acquiring an additional 399 shares during the last quarter. Finally, Advisory Services Network LLC acquired a new stake in shares of DigitalOcean in the third quarter valued at approximately $54,000. 49.77% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on the stock. Stifel Nicolaus set a $57.00 price target on shares of DigitalOcean in a research report on Tuesday, February 24th. UBS Group lifted their price target on shares of DigitalOcean to $175.00 and gave the company a "neutral" rating in a research report on Tuesday, May 12th. Canaccord Genuity Group lifted their price target on shares of DigitalOcean from $120.00 to $200.00 and gave the company a "buy" rating in a research report on Wednesday, May 6th. Oppenheimer set a $190.00 price target on shares of DigitalOcean in a research report on Wednesday, May 6th. Finally, Bank of America lifted their price target on shares of DigitalOcean from $103.00 to $107.00 and gave the company a "buy" rating in a research report on Thursday, April 9th. Nine investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat.com, DigitalOcean currently has a consensus rating of "Moderate Buy" and an average target price of $142.23.

Insider Buying and Selling at DigitalOcean

In other DigitalOcean news, CFO Matt Steinfort sold 25,000 shares of the business's stock in a transaction on Friday, May 15th. The shares were sold at an average price of $152.50, for a total transaction of $3,812,500.00. Following the sale, the chief financial officer owned 573,272 shares of the company's stock, valued at approximately $87,423,980. The trade was a 4.18% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CAO Cherie Barrett sold 22,000 shares of the business's stock in a transaction on Monday, March 2nd. The stock was sold at an average price of $54.77, for a total transaction of $1,204,940.00. Following the sale, the chief accounting officer directly owned 62,469 shares in the company, valued at approximately $3,421,427.13. The trade was a 26.05% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 71,338 shares of company stock worth $6,803,816 over the last three months. Corporate insiders own 0.96% of the company's stock.

DigitalOcean Stock Up 0.3%

Shares of DOCN opened at $158.93 on Monday. DigitalOcean Holdings, Inc. has a one year low of $25.56 and a one year high of $165.99. The company has a market cap of $16.59 billion, a P/E ratio of 69.40 and a beta of 1.42. The company has a debt-to-equity ratio of 0.92, a current ratio of 1.46 and a quick ratio of 1.46. The firm has a 50 day simple moving average of $105.50 and a two-hundred day simple moving average of $71.33.

DigitalOcean (NYSE:DOCN - Get Free Report) last announced its quarterly earnings data on Tuesday, May 5th. The company reported $0.44 EPS for the quarter, beating the consensus estimate of $0.27 by $0.17. DigitalOcean had a net margin of 24.97% and a return on equity of 88.86%. The business had revenue of $257.91 million during the quarter, compared to the consensus estimate of $249.76 million. During the same period in the previous year, the business earned $0.56 earnings per share. The company's revenue was up 22.4% on a year-over-year basis. DigitalOcean has set its Q2 2026 guidance at 0.200-0.230 EPS and its FY 2026 guidance at 1.100-1.200 EPS. Research analysts forecast that DigitalOcean Holdings, Inc. will post 0.55 EPS for the current fiscal 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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