Sincerus Advisory LLC Sells 13,662 Shares of DigitalOcean Holdings, Inc. $DOCN

Key Points

• Sincerus Advisory cut its DigitalOcean stake by 33.2% in the second quarter, selling 13,662 shares and retaining 27,474 shares valued at approximately $4.3 million. Institutional investors collectively own 49.77% of DOCN.
• Analyst sentiment remains broadly positive, with a consensus rating of “Moderate Buy” and an average price target of $151.93, although some firms recently lowered ratings or targets.
• DigitalOcean reported quarterly revenue of $257.9 million, up 22.4% year over year, and adjusted earnings of $0.44 per share, beating analyst expectations of $0.27. Shares opened at $128.13 and have traded between $26.20 and $187.50 over the past year.

Sincerus Advisory LLC reduced its position in DigitalOcean Holdings, Inc. (NYSE:DOCN - Free Report) by 33.2% during the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 27,474 shares of the company's stock after selling 13,662 shares during the period. DigitalOcean makes up 2.9% of Sincerus Advisory LLC's investment portfolio, making the stock its 9th largest holding. Sincerus Advisory LLC's holdings in DigitalOcean were worth $4,314,000 at the end of the most recent quarter.

Other large investors also recently modified their holdings of the company. Principal Financial Group Inc. increased its stake in DigitalOcean by 155.3% during the 1st quarter. Principal Financial Group Inc. now owns 1,108,420 shares of the company's stock valued at $95,080,000 after purchasing an additional 674,231 shares in the last quarter. Alyeska Investment Group L.P. bought a new position in shares of DigitalOcean in the third quarter valued at $21,808,000. Arrowstreet Capital Limited Partnership grew its holdings in shares of DigitalOcean by 90.9% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 1,194,845 shares of the company's stock valued at $57,496,000 after buying an additional 568,823 shares during the last quarter. Franklin Resources Inc. grew its holdings in shares of DigitalOcean by 784.2% during the fourth quarter. Franklin Resources Inc. now owns 494,314 shares of the company's stock valued at $23,786,000 after buying an additional 438,411 shares during the last quarter. Finally, Danske Bank A S bought a new stake in shares of DigitalOcean during the third quarter worth about $14,582,000. 49.77% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

Several equities analysts recently weighed in on DOCN shares. Weiss Ratings cut shares of DigitalOcean from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Tuesday, July 28th. Stifel Nicolaus raised DigitalOcean from a "hold" rating to a "buy" rating and boosted their price objective for the stock from $135.00 to $160.00 in a report on Tuesday, July 21st. The Goldman Sachs Group boosted their price objective on 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 DigitalOcean in a research note on Wednesday, May 6th. Finally, UBS Group cut their target price on DigitalOcean from $175.00 to $155.00 and set a "neutral" rating on the stock in a research report on Wednesday, July 8th. Two analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $151.93.

Insider Activity at DigitalOcean

In other DigitalOcean news, CFO Matt Steinfort sold 25,000 shares of the business's stock in a transaction on Friday, May 15th. The stock was sold at an average price of $152.50, for a total value of $3,812,500.00. Following the transaction, 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 ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Hilary Schneider sold 4,338 shares of the business's stock in a transaction 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 transaction, the director directly owned 24,323 shares in the company, valued at approximately $3,803,630.74. This represents a 15.14% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 39,338 shares of company stock valued at $6,191,576. 0.96% of the stock is currently owned by corporate insiders.

DigitalOcean Trading Up 9.0%

Shares of DOCN stock opened at $128.13 on Tuesday. The company has a debt-to-equity ratio of 0.92, a quick ratio of 1.46 and a current ratio of 1.46. The company has a market capitalization of $13.37 billion, a price-to-earnings ratio of 55.95 and a beta of 1.61. DigitalOcean Holdings, Inc. has a 52-week low of $26.20 and a 52-week high of $187.50. The company has a 50-day simple moving average of $146.62 and a two-hundred day simple moving average of $106.94.

DigitalOcean (NYSE:DOCN - Get Free Report) last posted its earnings results on Tuesday, May 5th. The company reported $0.44 EPS for the quarter, topping 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 firm had revenue of $257.90 million for the quarter, compared to analysts' expectations of $249.76 million. During the same quarter last year, the firm earned $0.56 EPS. The company's quarterly revenue was up 22.4% compared to the same quarter last year. Research analysts anticipate that DigitalOcean Holdings, Inc. will post 0.57 EPS for the current fiscal year.

DigitalOcean Company 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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