Lisanti Capital Growth LLC Acquires New Stake in DigitalOcean Holdings, Inc. $DOCN

Key Points

• Lisanti Capital Growth LLC initiated a DigitalOcean position of 50,425 shares worth approximately $7.9 million, making DOCN its sixth-largest holding. Institutional investors own about 49.77% of the company.
• DigitalOcean reported quarterly revenue of $281.18 million, up 28.6% year over year, and EPS of $0.45—well above analysts’ $0.26 estimate. The company issued fiscal 2026 EPS guidance of $1.35–$1.40.
• Analyst sentiment is broadly positive, with a consensus “Buy” rating and an average price target of $151.33, although shares opened at $116.60 after trading between $29.62 and $187.50 over the past year.

Lisanti Capital Growth LLC bought a new position in DigitalOcean Holdings, Inc. (NYSE:DOCN - Free Report) during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm bought 50,425 shares of the company's stock, valued at approximately $7,918,000. DigitalOcean comprises about 1.7% of Lisanti Capital Growth LLC's investment portfolio, making the stock its 6th largest position.

A number of other large investors have also made changes to their positions in DOCN. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its stake in shares of DigitalOcean by 5.0% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 339,670 shares of the company's stock worth $11,342,000 after purchasing an additional 16,162 shares during the period. Intech Investment Management LLC boosted its holdings in shares of DigitalOcean by 59.2% in the first quarter. Intech Investment Management LLC now owns 39,429 shares of the company's stock worth $1,317,000 after buying an additional 14,655 shares during the last quarter. Amundi grew its position in DigitalOcean by 126,552.2% during the second quarter. Amundi now owns 29,130 shares of the company's stock valued at $827,000 after buying an additional 29,107 shares during the period. Jump Financial LLC purchased a new position in shares of DigitalOcean during the 2nd quarter worth $3,212,000. Finally, Qube Research & Technologies Ltd grew its position in shares of DigitalOcean by 69.7% during the 2nd quarter. Qube Research & Technologies Ltd now owns 414,643 shares of the company's stock valued at $11,842,000 after acquiring an additional 170,339 shares during the period. 49.77% of the stock is currently owned by institutional investors.

DigitalOcean Stock Performance

Shares of NYSE DOCN opened at $116.60 on Thursday. The stock has a market cap of $12.17 billion, a PE ratio of 53.24, a price-to-earnings-growth ratio of 107.22 and a beta of 1.61. DigitalOcean Holdings, Inc. has a 1 year low of $29.62 and a 1 year high of $187.50. The firm has a fifty day moving average price of $137.14 and a 200-day moving average price of $113.05. 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 earnings per share for the quarter, beating analysts' consensus estimates of $0.26 by $0.19. DigitalOcean had a net margin of 23.26% and a return on equity of 31.01%. The company had revenue of $281.18 million for the quarter, compared to analysts' expectations of $279.03 million. During the same quarter in the previous year, the company earned $0.39 EPS. DigitalOcean's revenue for the quarter 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. Equities analysts anticipate that DigitalOcean Holdings, Inc. will post 0.63 earnings per share for the current fiscal year.

Insider Activity

In other news, Director Warren J. Adelman sold 4,200 shares of the company's stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $124.01, for a total value of $520,842.00. Following the completion of the transaction, the director owned 67,433 shares of the company's stock, valued at $8,362,366.33. This represents a 5.86% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CFO Matt Steinfort sold 10,000 shares of the stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $170.07, for a total value of $1,700,700.00. Following the sale, the chief financial officer owned 538,414 shares of the company's stock, valued at $91,568,068.98. This represents a 1.82% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 18,656 shares of company stock worth $2,811,383 over the last ninety days. Corporate insiders own 0.96% of the company's stock.

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on the company. Piper Sandler upped their price objective on DigitalOcean from $98.00 to $155.00 and gave the stock a "neutral" rating in a research note on Tuesday, May 5th. Morgan Stanley lifted their target price on DigitalOcean from $75.00 to $175.00 and gave the company an "overweight" rating in a research report on Wednesday, May 6th. Stifel Nicolaus upgraded DigitalOcean from a "hold" rating to a "buy" rating and upped their price target for the stock from $135.00 to $160.00 in a research report on Tuesday, July 21st. Weiss Ratings upgraded DigitalOcean from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Tuesday, August 11th. Finally, Oppenheimer set a $190.00 price objective on DigitalOcean in a research note on Wednesday, May 6th. Two equities research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, DigitalOcean has an average rating of "Buy" and a consensus target price of $151.33.

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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