Oribel Capital Management LP Takes Position in DigitalOcean Holdings, Inc. $DOCN

Key Points

• Oribel Capital Management opened a new position in DigitalOcean in the first quarter, buying 25,200 shares valued at about $2.16 million.
• DigitalOcean reported strong quarterly results, beating earnings and revenue estimates with EPS of $0.44 and revenue of $257.9 million, up 22.4% year over year.
• Analyst sentiment remains positive overall, with multiple firms upgrading the stock and a consensus rating of Buy alongside an average price target of $151.93.

Oribel Capital Management LP acquired a new position in shares of DigitalOcean Holdings, Inc. (NYSE:DOCN - Free Report) in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 25,200 shares of the company's stock, valued at approximately $2,162,000.

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

DigitalOcean Trading Down 5.7%

DigitalOcean stock opened at $123.65 on Friday. The firm has a 50-day moving average of $151.20 and a 200-day moving average of $103.88. DigitalOcean Holdings, Inc. has a one year low of $25.56 and a one year high of $187.50. 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 company has a market cap of $12.90 billion, a price-to-earnings ratio of 53.99 and a beta of 1.57.

DigitalOcean (NYSE:DOCN - Get Free Report) last announced its quarterly earnings data on Tuesday, May 5th. The company reported $0.44 earnings per share for the quarter, beating the consensus estimate of $0.27 by $0.17. The company had revenue of $257.90 million during the quarter, compared to analysts' expectations of $249.76 million. DigitalOcean had a return on equity of 88.86% and a net margin of 24.97%.DigitalOcean's revenue for the quarter was up 22.4% compared to the same quarter last year. During the same quarter last year, the company earned $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, equities analysts expect that DigitalOcean Holdings, Inc. will post 0.56 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, CFO Matt Steinfort sold 25,000 shares of the company's stock in a transaction that occurred on Friday, May 15th. The stock was 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 in the company, valued at $87,423,980. This represents a 4.18% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, Director Hilary Schneider sold 4,338 shares of the stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $156.38, for a total value of $678,376.44. Following the completion of the sale, the director directly owned 24,323 shares of the company's stock, valued at approximately $3,803,630.74. The trade was a 15.14% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 39,338 shares of company stock valued at $6,191,576. Corporate insiders own 0.96% of the company's stock.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on DOCN. UBS Group reduced their price objective on DigitalOcean from $175.00 to $155.00 and set a "neutral" rating for the company in a research report on Wednesday, July 8th. Stifel Nicolaus raised DigitalOcean from a "hold" rating to a "buy" rating and lifted their target price for the company from $135.00 to $160.00 in a research report on Tuesday. Weiss Ratings upgraded DigitalOcean from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Friday, July 10th. Citigroup upped their price target on DigitalOcean from $180.00 to $185.00 and gave the stock a "buy" rating in a research report on Wednesday, July 8th. Finally, Oppenheimer set a $190.00 price target on shares of DigitalOcean in a research note on Wednesday, May 6th. Two investment 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. According to MarketBeat.com, the company presently has a consensus rating of "Buy" and an average target price of $151.93.

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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