Paragon Capital Management Ltd Sells 52,076 Shares of DigitalOcean Holdings, Inc. $DOCN

Key Points

• Paragon Capital Management cut its DigitalOcean position by 16.9%, selling 52,076 shares in the second quarter and retaining 255,766 shares worth approximately $40.2 million. DigitalOcean remains the fund’s fourth-largest holding and represents 7.5% of its portfolio.
• Analyst sentiment remains broadly positive, with DigitalOcean receiving an average “Buy” rating and a consensus price target of $152.81. Targets cited in the article range from $140 at UBS to $200 at Canaccord Genuity and KeyCorp.
• DigitalOcean reported stronger-than-expected quarterly results, posting $0.45 in EPS versus the $0.26 consensus and $281.18 million in revenue, up 28.6% year over year. Its shares recently traded at $126.26, up 12.3%.

Paragon Capital Management Ltd reduced its position in shares of DigitalOcean Holdings, Inc. (NYSE:DOCN - Free Report) by 16.9% during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 255,766 shares of the company's stock after selling 52,076 shares during the period. DigitalOcean comprises 7.5% of Paragon Capital Management Ltd's investment portfolio, making the stock its 4th largest holding. Paragon Capital Management Ltd owned approximately 0.25% of DigitalOcean worth $40,163,000 at the end of the most recent quarter.

A number of other large investors have also added to or reduced their stakes in DOCN. Hilltop National Bank acquired a new position in shares of DigitalOcean during the second quarter worth $38,000. Rakuten Securities Inc. bought a new position in DigitalOcean during the 2nd quarter worth $43,000. Parallel Advisors LLC lifted its holdings in DigitalOcean by 66.2% during the 1st quarter. Parallel Advisors LLC now owns 324 shares of the company's stock worth $28,000 after buying an additional 129 shares during the period. Banque Cantonale Vaudoise bought a new stake in shares of DigitalOcean in the 1st quarter valued at about $33,000. Finally, LRI Investments LLC acquired a new stake in shares of DigitalOcean in the second quarter valued at about $64,000. Institutional investors own 49.77% of the company's stock.

Insider Buying and Selling

In other news, Director Warren J. Adelman sold 4,200 shares of DigitalOcean stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $124.01, for a total transaction of $520,842.00. Following the completion of the transaction, the director directly owned 67,433 shares in the company, valued at $8,362,366.33. This trade represents a 5.86% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Matt Steinfort sold 10,000 shares of the business's stock in a transaction dated Thursday, September 3rd. The stock was sold at an average price of $105.73, for a total transaction of $1,057,300.00. Following the sale, the chief financial officer directly owned 503,692 shares of the company's stock, valued at approximately $53,255,355.16. The trade was a 1.95% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 22,641 shares of company stock worth $2,589,317 in the last ninety days. Corporate insiders own 0.96% of the company's stock.

Wall Street Analyst Weigh In

DOCN has been the subject of several analyst reports. Canaccord Genuity Group restated a "buy" rating and set a $200.00 price target on shares of DigitalOcean in a report on Friday, July 10th. UBS Group reduced their price objective on shares of DigitalOcean from $155.00 to $140.00 and set a "neutral" rating on the stock in a research note on Wednesday, August 5th. Weiss Ratings raised shares of DigitalOcean from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Tuesday, August 11th. KeyCorp started coverage on shares of DigitalOcean in a report on Tuesday, June 2nd. They issued an "overweight" rating and a $200.00 target price on the stock. Finally, Robert W. Baird began coverage on shares of DigitalOcean in a research report on Tuesday, July 21st. They set an "outperform" rating and a $165.00 price target on the stock. Two investment analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, DigitalOcean currently has an average rating of "Buy" and a consensus target price of $152.81.

DigitalOcean Trading Up 12.3%

Shares of NYSE:DOCN traded up $13.79 during mid-day trading on Tuesday, hitting $126.26. The company had a trading volume of 4,375,185 shares, compared to its average volume of 3,669,071. 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 Holdings, Inc. has a one year low of $33.08 and a one year high of $187.50. The firm has a fifty day moving average price of $123.78 and a 200 day moving average price of $117.63. The company has a market capitalization of $13.18 billion, a PE ratio of 57.65, a price-to-earnings-growth ratio of 96.28 and a beta of 1.57.

DigitalOcean (NYSE:DOCN - Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The company reported $0.45 EPS for the quarter, topping analysts' consensus estimates of $0.26 by $0.19. The business had revenue of $281.18 million during the quarter, compared to analysts' expectations of $279.03 million. DigitalOcean had a net margin of 23.26% and a return on equity of 31.01%. The business's quarterly revenue was up 28.6% on a year-over-year basis. During the same period last year, the company posted $0.39 earnings per share. DigitalOcean has set its FY 2026 guidance at 1.350-1.400 EPS and its Q3 2026 guidance at 0.280-0.300 EPS. As a group, research analysts forecast that DigitalOcean Holdings, Inc. will post 0.63 EPS for the current year.

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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