Russell Investments Group Ltd. Increases Stock Position in DigitalOcean Holdings, Inc. $DOCN

Key Points

• Russell Investments Group Ltd. significantly increased its stake in DigitalOcean Holdings, Inc. by 75.5%, owning approximately 285,079 shares valued at about $9.52 million as of its latest SEC filing.
• DigitalOcean reported earnings of $0.59 per share, exceeding analyst expectations, with a revenue increase of 13.6% year-over-year.
• Analyst ratings for DigitalOcean include several upgrades and a mixed outlook, with a current average target price of $41.45 and a consensus of seven buy ratings versus one sell rating.

Russell Investments Group Ltd. boosted its holdings in shares of DigitalOcean Holdings, Inc. (NYSE:DOCN - Free Report) by 75.5% in the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 285,079 shares of the company's stock after acquiring an additional 122,612 shares during the period. Russell Investments Group Ltd. owned about 0.31% of DigitalOcean worth $9,519,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. GAMMA Investing LLC raised its position in DigitalOcean by 336.1% during the first quarter. GAMMA Investing LLC now owns 1,064 shares of the company's stock worth $36,000 after acquiring an additional 820 shares during the last quarter. Farther Finance Advisors LLC raised its position in DigitalOcean by 135,100.0% during the first quarter. Farther Finance Advisors LLC now owns 1,352 shares of the company's stock worth $46,000 after acquiring an additional 1,351 shares during the last quarter. Covestor Ltd raised its position in DigitalOcean by 35.8% during the first quarter. Covestor Ltd now owns 3,182 shares of the company's stock worth $106,000 after acquiring an additional 838 shares during the last quarter. Canada Pension Plan Investment Board acquired a new position in DigitalOcean during the fourth quarter worth about $133,000. Finally, Cerity Partners LLC acquired a new position in DigitalOcean during the first quarter worth about $223,000. Institutional investors and hedge funds own 49.77% of the company's stock.

Insider Buying and Selling

In related news, insider Bratin Saha sold 3,461 shares of the company's stock in a transaction that occurred on Wednesday, June 18th. The shares were sold at an average price of $27.77, for a total transaction of $96,111.97. Following the completion of the transaction, the insider owned 294,546 shares of the company's stock, valued at approximately $8,179,542.42. This represents a 1.16% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 0.96% of the company's stock.

Analyst Ratings Changes

DOCN has been the subject of a number of research reports. Wall Street Zen upgraded shares of DigitalOcean from a "hold" rating to a "buy" rating in a research report on Sunday, June 29th. Canaccord Genuity Group upped their price objective on shares of DigitalOcean from $45.00 to $49.00 and gave the company a "buy" rating in a research note on Wednesday, August 6th. The Goldman Sachs Group reduced their price objective on shares of DigitalOcean from $46.00 to $41.00 and set a "buy" rating on the stock in a research note on Wednesday, May 7th. Citigroup reduced their price objective on shares of DigitalOcean from $50.00 to $40.00 and set a "buy" rating on the stock in a research note on Wednesday, May 7th. Finally, Stifel Nicolaus set a $36.00 price objective on shares of DigitalOcean in a research note on Tuesday, August 5th. Six equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $41.45.

DigitalOcean Price Performance

DOCN stock traded down $0.2340 on Thursday, hitting $29.9760. 1,114,700 shares of the company were exchanged, compared to its average volume of 3,728,201. DigitalOcean Holdings, Inc. has a twelve month low of $25.45 and a twelve month high of $47.02. The business's fifty day moving average is $29.27 and its two-hundred day moving average is $32.31. The stock has a market capitalization of $2.73 billion, a price-to-earnings ratio of 23.06, a price-to-earnings-growth ratio of 1.76 and a beta of 1.75.

DigitalOcean (NYSE:DOCN - Get Free Report) last issued its quarterly earnings results on Tuesday, August 5th. The company reported $0.59 EPS for the quarter, topping the consensus estimate of $0.47 by $0.12. DigitalOcean had a net margin of 15.18% and a negative return on equity of 73.19%. The firm had revenue of $218.70 million during the quarter, compared to analyst estimates of $216.62 million. During the same quarter in the prior year, the business posted $0.48 earnings per share. DigitalOcean's revenue for the quarter was up 13.6% compared to the same quarter last year. DigitalOcean has set its FY 2025 guidance at 2.050-2.100 EPS. Q3 2025 guidance at 0.450-0.500 EPS. Equities research analysts expect that DigitalOcean Holdings, Inc. will post 1.01 earnings per share for the current year.

About DigitalOcean

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).