Northwestern Mutual Wealth Management Co. Invests $2.80 Million in DigitalOcean Holdings, Inc. $DOCN

Key Points

• Northwestern Mutual Wealth Management acquired 17,817 DigitalOcean shares worth approximately $2.8 million, while institutional investors collectively own 49.77% of the company.
• Analysts maintain a favorable outlook, with the stock receiving a consensus “Buy” rating and an average price target of $151.33; Morgan Stanley raised its target to $175 and assigned an “overweight” rating.
• DigitalOcean exceeded quarterly expectations, reporting $0.45 earnings per share versus the $0.26 consensus and revenue of $281.18 million, up 28.6% year over year. However, insiders sold 18,656 shares worth $2.81 million over the past 90 days.

Northwestern Mutual Wealth Management Co. acquired a new stake in shares of DigitalOcean Holdings, Inc. (NYSE:DOCN - Free Report) during the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund acquired 17,817 shares of the company's stock, valued at approximately $2,798,000.

A number of other large investors have also modified their holdings of the company. Allworth Financial LP boosted its stake 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 buying an additional 255 shares in the last quarter. Parallel Advisors LLC increased its holdings in DigitalOcean by 66.2% in the 1st quarter. Parallel Advisors LLC now owns 324 shares of the company's stock valued at $28,000 after buying an additional 129 shares during the period. Huntington National Bank raised its stake in shares of DigitalOcean by 638.3% in the 4th quarter. Huntington National Bank now owns 598 shares of the company's stock valued at $29,000 after buying an additional 517 shares in the last quarter. NBC Securities Inc. acquired a new position in shares of DigitalOcean in the 4th quarter valued at $32,000. Finally, Banque Cantonale Vaudoise bought a new position in shares of DigitalOcean during the 1st quarter worth about $33,000. 49.77% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

DOCN has been the topic of several recent research reports. Piper Sandler lifted their target price on shares of DigitalOcean from $98.00 to $155.00 and gave the company a "neutral" rating in a research report on Tuesday, May 5th. Oppenheimer set a $190.00 price target on shares of DigitalOcean in a research report on Wednesday, May 6th. Morgan Stanley raised their price target on shares of DigitalOcean from $75.00 to $175.00 and gave the stock an "overweight" rating in a research note on Wednesday, May 6th. Barclays lifted their price objective on DigitalOcean from $160.00 to $161.00 and gave the company an "overweight" rating in a report on Wednesday, August 5th. Finally, William Blair reissued an "outperform" rating on shares of DigitalOcean in a report on Wednesday, July 15th. Two analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Buy" and a consensus price target of $151.33.

DigitalOcean Price Performance

DigitalOcean stock opened at $111.53 on Tuesday. The company has a debt-to-equity ratio of 1.14, a quick ratio of 1.31 and a current ratio of 1.31. The firm has a market cap of $11.64 billion, a P/E ratio of 50.93, a P/E/G ratio of 98.99 and a beta of 1.61. The business's fifty day moving average is $133.48 and its two-hundred day moving average is $114.23. DigitalOcean Holdings, Inc. has a 52 week low of $30.36 and a 52 week high of $187.50.

DigitalOcean (NYSE:DOCN - Get Free Report) last announced 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 return on equity of 31.01% and a net margin of 23.26%.The company had revenue of $281.18 million during the quarter, compared to analyst estimates of $279.03 million. During the same period last year, the company posted $0.39 earnings per share. The firm's quarterly revenue was up 28.6% compared to the same quarter last year. 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 research analysts forecast that DigitalOcean Holdings, Inc. will post 0.63 earnings per share for the current fiscal year.

Insider Buying and Selling at DigitalOcean

In other DigitalOcean news, Director Warren J. Adelman sold 4,200 shares of the firm's stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $124.01, for a total value of $520,842.00. Following the completion of the sale, the director owned 67,433 shares in the company, valued at approximately $8,362,366.33. This trade represents a 5.86% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CAO Cherie Barrett sold 4,456 shares of the business's stock in a transaction dated Thursday, August 13th. The stock was sold at an average price of $132.37, for a total transaction of $589,840.72. Following the completion of the transaction, the chief accounting officer directly owned 65,487 shares of the company's stock, valued at approximately $8,668,514.19. This represents a 6.37% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 18,656 shares of company stock worth $2,811,383. 0.96% of the stock is currently owned by corporate insiders.

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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