Private Advisor Group LLC Cuts Stake in DigitalOcean Holdings, Inc. $DOCN

Key Points

• Private Advisor Group LLC cut its DigitalOcean stake by 61.9% in the first quarter, leaving it with 35,328 shares worth about $3.03 million.
• DigitalOcean reported better-than-expected quarterly results, with EPS of $0.44 versus $0.27 expected and revenue of $257.9 million, up 22.4% year over year.
• Wall Street remains broadly positive on DOCN, with several firms raising targets; the stock has a Moderate Buy consensus and a $145.36 average price target.

Private Advisor Group LLC lessened its stake in shares of DigitalOcean Holdings, Inc. (NYSE:DOCN - Free Report) by 61.9% during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 35,328 shares of the company's stock after selling 57,498 shares during the quarter. Private Advisor Group LLC's holdings in DigitalOcean were worth $3,030,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds also recently modified their holdings of DOCN. Elevation Point Wealth Partners LLC acquired a new stake in shares of DigitalOcean in the first quarter valued at about $357,000. Strs Ohio lifted its position in DigitalOcean by 1,575.0% during the 1st quarter. Strs Ohio now owns 6,700 shares of the company's stock worth $575,000 after acquiring an additional 6,300 shares in the last quarter. Peregrine Capital Management LLC purchased a new position in DigitalOcean in the 1st quarter worth approximately $13,530,000. Janney Montgomery Scott LLC acquired a new stake in DigitalOcean in the first quarter valued at approximately $402,000. Finally, Pictet Asset Management Holding SA raised its stake in shares of DigitalOcean by 22.3% during the first quarter. Pictet Asset Management Holding SA now owns 11,653 shares of the company's stock valued at $1,000,000 after purchasing an additional 2,128 shares during the period. Hedge funds and other institutional investors own 49.77% of the company's stock.

DigitalOcean Trading Up 0.5%

DigitalOcean stock opened at $141.13 on Friday. The firm's 50-day moving average is $155.69 and its 200-day moving average is $98.28. The company has a debt-to-equity ratio of 0.92, a quick ratio of 1.46 and a current ratio of 1.46. DigitalOcean Holdings, Inc. has a 1 year low of $25.56 and a 1 year high of $187.50. The company has a market cap of $14.73 billion, a P/E ratio of 61.63 and a beta of 1.57.

DigitalOcean (NYSE:DOCN - Get Free Report) last posted its quarterly earnings results on Tuesday, May 5th. The company reported $0.44 EPS for the quarter, beating the consensus estimate of $0.27 by $0.17. DigitalOcean had a net margin of 24.97% and a return on equity of 88.86%. The business had revenue of $257.90 million during the quarter, compared to analyst estimates of $249.76 million. During the same period in the previous year, the business posted $0.56 EPS. The company's quarterly revenue was up 22.4% on a year-over-year basis. 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 0.55 earnings per share for the current year.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on DOCN shares. Morgan Stanley boosted their target price on shares of DigitalOcean from $75.00 to $175.00 and gave the stock an "overweight" rating in a research report on Wednesday, May 6th. KeyCorp assumed coverage on shares of DigitalOcean in a research note on Tuesday, June 2nd. They set an "overweight" rating and a $200.00 price target on the stock. The Goldman Sachs Group boosted their price objective on shares of DigitalOcean from $78.00 to $179.00 and gave the stock a "buy" rating in a report on Wednesday, May 6th. Oppenheimer set a $190.00 price objective on shares of DigitalOcean in a research report on Wednesday, May 6th. Finally, Canaccord Genuity Group restated a "buy" rating and set a $200.00 target price on shares of DigitalOcean in a research note on Thursday, June 11th. One investment analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $145.36.

Insider Transactions at DigitalOcean

In other news, CFO Matt Steinfort sold 25,000 shares of the 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 directly owned 573,272 shares in the company, valued at approximately $87,423,980. This represents a 4.18% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Hilary Schneider sold 4,338 shares of the firm's stock in a transaction that occurred on Friday, May 15th. The stock was 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 in the company, valued at approximately $3,803,630.74. This trade represents a 15.14% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 39,338 shares of company stock worth $6,191,576 in the last three months. 0.96% of the stock is currently owned by corporate insiders.

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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