Mizuho Markets Americas LLC Lowers Holdings in DigitalOcean Holdings, Inc. $DOCN

Key Points

• Mizuho Markets Americas LLC cut its DigitalOcean stake by 36.7% in the fourth quarter, selling 130,127 shares and leaving it with 224,723 shares valued at about $10.8 million.
• DigitalOcean reported better-than-expected Q1 results, with earnings of $0.44 per share versus $0.27 expected and revenue of $257.9 million, up 22.4% year over year.
• Analyst sentiment remains constructive: the stock has a Moderate Buy consensus with an average price target of $142.23, though there has also been notable insider selling recently, including CFO Matt Steinfort selling 25,000 shares.

Mizuho Markets Americas LLC trimmed its holdings in DigitalOcean Holdings, Inc. (NYSE:DOCN - Free Report) by 36.7% during the 4th quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 224,723 shares of the company's stock after selling 130,127 shares during the quarter. Mizuho Markets Americas LLC owned 0.25% of DigitalOcean worth $10,814,000 at the end of the most recent reporting period.

Other hedge funds also recently added to or reduced their stakes in the company. Allworth Financial LP boosted its holdings in DigitalOcean by 54.4% in the third quarter. Allworth Financial LP now owns 724 shares of the company's stock valued at $25,000 after purchasing an additional 255 shares during the last quarter. NBC Securities Inc. purchased a new stake in DigitalOcean in the fourth quarter valued at $32,000. Wilmington Savings Fund Society FSB purchased a new stake in DigitalOcean in the third quarter valued at $37,000. Advisory Services Network LLC purchased a new stake in DigitalOcean in the third quarter valued at $54,000. Finally, GAMMA Investing LLC boosted its holdings in DigitalOcean by 33.8% in the fourth quarter. GAMMA Investing LLC now owns 1,581 shares of the company's stock valued at $76,000 after purchasing an additional 399 shares during the last quarter. 49.77% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several equities research analysts have commented on DOCN shares. Royal Bank Of Canada set a $60.00 price target on shares of DigitalOcean in a report on Tuesday, February 24th. Piper Sandler increased their target price on shares of DigitalOcean from $98.00 to $155.00 and gave the stock a "neutral" rating in a research note on Tuesday, May 5th. Bank of America increased their target price on shares of DigitalOcean from $103.00 to $107.00 and gave the stock a "buy" rating in a research note on Thursday, April 9th. Cantor Fitzgerald increased their target price on shares of DigitalOcean from $68.00 to $83.00 and gave the stock an "overweight" rating in a research note on Wednesday, February 25th. Finally, Weiss Ratings reissued a "hold (c+)" rating on shares of DigitalOcean in a research note on Friday, March 27th. Nine investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $142.23.

DigitalOcean Stock Up 0.4%

DOCN opened at $158.93 on Friday. DigitalOcean Holdings, Inc. has a twelve month low of $25.56 and a twelve month high of $165.99. The company has a quick ratio of 1.46, a current ratio of 1.46 and a debt-to-equity ratio of 0.92. The company has a 50-day moving average price of $105.50 and a 200 day moving average price of $71.12. The company has a market cap of $16.59 billion, a PE ratio of 69.40 and a beta of 1.42.

DigitalOcean (NYSE:DOCN - Get Free Report) last released its quarterly earnings results on Tuesday, May 5th. The company reported $0.44 earnings per share for the quarter, topping 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 firm had revenue of $257.91 million during the quarter, compared to the consensus estimate of $249.76 million. During the same quarter in the prior year, the firm earned $0.56 EPS. The company's revenue for the quarter 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. Sell-side analysts expect that DigitalOcean Holdings, Inc. will post 0.55 earnings per share for the current fiscal year.

Insider Buying and Selling

In other DigitalOcean news, 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 sale, the chief financial officer owned 573,272 shares in the company, valued at approximately $87,423,980. This represents a 4.18% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CAO Cherie Barrett sold 22,000 shares of the stock in a transaction dated Monday, March 2nd. The shares were sold at an average price of $54.77, for a total transaction of $1,204,940.00. Following the completion of the sale, the chief accounting officer owned 62,469 shares of the company's stock, valued at approximately $3,421,427.13. The trade was a 26.05% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 71,338 shares of company stock worth $6,803,816 in the last 90 days. 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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