Pinnacle Wealth Management LLC Invests $556,000 in DigitalOcean Holdings, Inc. $DOCN

Key Points

• Pinnacle Wealth Management LLC invested $556,000 in DigitalOcean Holdings, purchasing 16,647 shares during the first quarter.
• Several institutional investors have increased their stakes in DigitalOcean, with 49.77% of the stock now owned by institutional investors.
• DigitalOcean's recent earnings report showed a 13.6% revenue increase compared to the same quarter last year, with EPS of $0.59 surpassing expectations.

Pinnacle Wealth Management LLC purchased a new position in DigitalOcean Holdings, Inc. (NYSE:DOCN - Free Report) during the 1st quarter, according to its most recent disclosure with the SEC. The fund purchased 16,647 shares of the company's stock, valued at approximately $556,000.

Several other institutional investors also recently added to or reduced their stakes in the business. Jacobs Levy Equity Management Inc. boosted its stake in DigitalOcean by 16.6% in the fourth quarter. Jacobs Levy Equity Management Inc. now owns 1,628,995 shares of the company's stock worth $55,500,000 after purchasing an additional 231,407 shares in the last quarter. Nuveen LLC acquired a new position in DigitalOcean in the first quarter worth $5,737,000. Russell Investments Group Ltd. boosted its stake in DigitalOcean by 75.5% in the first quarter. Russell Investments Group Ltd. now owns 285,079 shares of the company's stock worth $9,519,000 after purchasing an additional 122,612 shares in the last quarter. Interval Partners LP acquired a new position in DigitalOcean in the fourth quarter worth $3,690,000. Finally, Fuller & Thaler Asset Management Inc. boosted its stake in DigitalOcean by 7.3% in the fourth quarter. Fuller & Thaler Asset Management Inc. now owns 1,545,642 shares of the company's stock worth $52,660,000 after purchasing an additional 105,235 shares in the last quarter. 49.77% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

Several equities analysts have weighed in on the company. Citigroup cut their target price on DigitalOcean from $50.00 to $40.00 and set a "buy" rating on the stock in a research note on Wednesday, May 7th. Barclays increased their price target on DigitalOcean from $38.00 to $40.00 and gave the stock an "overweight" rating in a report on Wednesday, August 6th. Morgan Stanley increased their price target on DigitalOcean from $41.00 to $44.00 and gave the stock an "overweight" rating in a report on Wednesday, August 6th. Wall Street Zen upgraded DigitalOcean from a "hold" rating to a "buy" rating in a report on Sunday, June 29th. Finally, The Goldman Sachs Group decreased their price objective on DigitalOcean from $46.00 to $41.00 and set a "buy" rating for the company in a report on Wednesday, May 7th. One investment analyst has rated the stock with a sell rating, five have assigned a hold rating and seven have given a buy rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $41.45.

DigitalOcean Trading Up 1.6%

Shares of NYSE DOCN opened at $31.03 on Monday. DigitalOcean Holdings, Inc. has a 12 month low of $25.45 and a 12 month high of $47.02. The stock has a 50 day moving average of $29.13 and a 200-day moving average of $32.48. The company has a market capitalization of $2.82 billion, a P/E ratio of 23.87, a P/E/G ratio of 1.81 and a beta of 1.75.

DigitalOcean (NYSE:DOCN - Get Free Report) last released its quarterly earnings results on Tuesday, August 5th. The company reported $0.59 earnings per share for the quarter, topping the consensus estimate of $0.47 by $0.12. The business had revenue of $218.70 million during the quarter, compared to analysts' expectations of $216.62 million. DigitalOcean had a negative return on equity of 73.19% and a net margin of 15.18%. The firm's revenue for the quarter was up 13.6% compared to the same quarter last year. During the same period last year, the firm posted $0.48 EPS. Analysts predict that DigitalOcean Holdings, Inc. will post 1.01 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, insider Bratin Saha sold 3,461 shares of DigitalOcean stock in a transaction that occurred on Wednesday, June 18th. The stock was sold at an average price of $27.77, for a total transaction of $96,111.97. Following the completion of the sale, the insider directly owned 294,546 shares of the company's stock, valued at approximately $8,179,542.42. This trade represents a 1.16% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Insiders own 0.74% of the company's stock.

DigitalOcean Company Profile

DigitalOcean Holdings, Inc, through its subsidiaries, operates a cloud computing platform in North America, Europe, Asia, and internationally. The company's platform provides on-demand infrastructure and platform tools for developers, start-ups, and small and growing digital businesses. It also offers infrastructure-as-a-service (IaaS) solutions comprising compute and storage services, as well as networking projects, including Cloud Firewalls software, Managed Load Balancers software, and Virtual Private Cloud (VPC).

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