Public Employees Retirement System of Ohio Makes New Investment in DigitalOcean Holdings, Inc. $DOCN

Key Points

• Ohio’s public employees’ retirement system purchased 23,601 DigitalOcean shares worth approximately $3.7 million during the second quarter. Hedge funds and other institutional investors collectively own 49.77% of DOCN.
• Analysts remain broadly bullish, with an average rating of “Buy” and a consensus price target of $152.81; several firms recently raised their targets, including Citigroup to $190 and Canaccord Genuity to $200.
• DigitalOcean exceeded quarterly expectations, reporting $0.45 in EPS versus a $0.26 estimate and $281.18 million in revenue, up 28.6% year over year. Insiders have nonetheless sold 22,641 shares worth about $2.59 million over the past three months.

Public Employees Retirement System of Ohio purchased a new stake in shares of DigitalOcean Holdings, Inc. (NYSE:DOCN - Free Report) during the 2nd quarter, according to its most recent Form 13F filing with the SEC. The institutional investor purchased 23,601 shares of the company's stock, valued at approximately $3,706,000.

A number of other institutional investors and hedge funds have also recently modified their holdings of DOCN. Allworth Financial LP lifted its holdings in DigitalOcean by 54.4% in the third quarter. Allworth Financial LP now owns 724 shares of the company's stock valued at $25,000 after acquiring an additional 255 shares during the period. Parallel Advisors LLC increased its position in shares of DigitalOcean by 66.2% during the 1st quarter. Parallel Advisors LLC now owns 324 shares of the company's stock valued at $28,000 after purchasing an additional 129 shares during the last quarter. Huntington National Bank increased its position in shares of DigitalOcean by 638.3% during the 4th quarter. Huntington National Bank now owns 598 shares of the company's stock valued at $29,000 after purchasing an additional 517 shares during the last quarter. Banque Cantonale Vaudoise bought a new position in shares of DigitalOcean in the 1st quarter worth approximately $33,000. Finally, Optiver Holding B.V. boosted its holdings in shares of DigitalOcean by 1,063.9% in the first quarter. Optiver Holding B.V. now owns 419 shares of the company's stock worth $36,000 after buying an additional 383 shares during the last quarter. 49.77% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

DOCN has been the topic of several analyst reports. Stifel Nicolaus upgraded shares of DigitalOcean from a "hold" rating to a "buy" rating and lifted their price target for the stock from $135.00 to $160.00 in a research note on Tuesday, July 21st. Citigroup upped their price objective on DigitalOcean from $185.00 to $190.00 and gave the stock a "buy" rating in a research note on Wednesday, August 5th. William Blair reiterated an "outperform" rating on shares of DigitalOcean in a research report on Wednesday, July 15th. Canaccord Genuity Group reissued a "buy" rating and issued a $200.00 target price on shares of DigitalOcean in a report on Friday, July 10th. Finally, Weiss Ratings upgraded shares of DigitalOcean from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Tuesday, August 11th. Two research analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Buy" and a consensus price target of $152.81.

DigitalOcean Stock Performance

NYSE DOCN opened at $109.50 on Friday. 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 1-year low of $30.89 and a 1-year high of $187.50. The business has a 50 day simple moving average of $125.06 and a two-hundred day simple moving average of $117.00. The stock has a market capitalization of $11.43 billion, a PE ratio of 50.00, a P/E/G ratio of 89.78 and a beta of 1.57.

DigitalOcean (NYSE:DOCN - Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The company reported $0.45 earnings per share for the quarter, topping the consensus estimate of $0.26 by $0.19. The company had revenue of $281.18 million for 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%. DigitalOcean's quarterly revenue was up 28.6% on a year-over-year basis. During the same quarter in the previous year, the business 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. On average, research analysts predict that DigitalOcean Holdings, Inc. will post 0.63 EPS for the current fiscal year.

Insider Transactions at DigitalOcean

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

DigitalOcean 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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