Peregrine Capital Management LLC Makes New Investment in DigitalOcean Holdings, Inc. $DOCN

Key Points

• Peregrine Capital Management opened a new position in DigitalOcean, buying 157,724 shares worth about $13.5 million in the first quarter.
• DigitalOcean’s latest quarterly results topped expectations, with EPS of $0.44 versus $0.27 expected and revenue of $257.9 million, up 22.4% year over year.
• Despite some insider selling, analysts remain broadly positive on DOCN, with a Moderate Buy consensus and an average price target of $146.36.

Peregrine Capital Management LLC bought a new position in DigitalOcean Holdings, Inc. (NYSE:DOCN - Free Report) in the 1st quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor bought 157,724 shares of the company's stock, valued at approximately $13,530,000. Peregrine Capital Management LLC owned approximately 0.17% of DigitalOcean as of its most recent filing with the SEC.

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

Insider Activity at DigitalOcean

In other DigitalOcean news, CFO Matt Steinfort sold 25,000 shares of DigitalOcean stock in a transaction that occurred on 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 of the company's stock, valued at approximately $87,423,980. The trade was a 4.18% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Hilary Schneider sold 4,338 shares of the business's stock in a transaction on Friday, May 15th. The shares were sold at an average price of $156.38, for a total transaction of $678,376.44. Following the sale, the director owned 24,323 shares of the company's stock, valued at approximately $3,803,630.74. This represents a 15.14% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 39,338 shares of company stock valued at $6,191,576 over the last three months. 0.96% of the stock is owned by corporate insiders.

DigitalOcean Trading Up 4.8%

Shares of NYSE:DOCN opened at $157.03 on Wednesday. The company has a market cap of $16.39 billion, a P/E ratio of 68.57 and a beta of 1.60. The company has a debt-to-equity ratio of 0.92, a current ratio of 1.46 and a quick ratio of 1.46. DigitalOcean Holdings, Inc. has a 1 year low of $25.56 and a 1 year high of $187.50. The stock's fifty day moving average price is $149.90 and its 200-day moving average price is $93.84.

DigitalOcean (NYSE:DOCN - Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The company reported $0.44 EPS for the quarter, topping the consensus estimate of $0.27 by $0.17. The company had revenue of $257.90 million during the quarter, compared to the consensus estimate 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% on a year-over-year basis. During the same period 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. Sell-side analysts expect that DigitalOcean Holdings, Inc. will post 0.54 earnings per share for the current year.

Analyst Ratings Changes

A number of research analysts recently issued reports on the stock. Oppenheimer set a $190.00 price target on shares of DigitalOcean in a research report on Wednesday, May 6th. Canaccord Genuity Group reaffirmed a "buy" rating and set a $200.00 target price on shares of DigitalOcean in a research note on Thursday, June 11th. Weiss Ratings reiterated a "hold (c+)" rating on shares of DigitalOcean in a report on Wednesday, June 24th. Citigroup boosted their price target on DigitalOcean from $115.00 to $180.00 and gave the stock a "buy" rating in a research report on Thursday, May 7th. Finally, Piper Sandler upped their price target on DigitalOcean from $98.00 to $155.00 and gave the stock a "neutral" rating in a research note on Tuesday, May 5th. One analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $146.36.

About DigitalOcean

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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