Spectrum Strategic Capital Management LLC Purchases New Position in DigitalOcean Holdings, Inc. $DOCN

Key Points

• Spectrum Strategic Capital Management opened a new position in DigitalOcean, buying 12,594 shares worth about $606,000 in the fourth quarter.
• Insider selling was reported, with CFO Matt Steinfort and CAO Cherie Barrett both reducing their holdings in early March through stock sales totaling more than $2.3 million.
• DigitalOcean posted a strong quarter, beating EPS and revenue estimates with $0.44 EPS on $257.91 million in revenue, and analysts remain broadly positive with a Moderate Buy consensus and an average price target of $142.23.

Spectrum Strategic Capital Management LLC purchased a new stake in shares of DigitalOcean Holdings, Inc. (NYSE:DOCN - Free Report) during the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund purchased 12,594 shares of the company's stock, valued at approximately $606,000.

A number of other hedge funds also recently bought and sold shares of DOCN. Bullseye Asset Management LLC raised its stake in DigitalOcean by 267.8% in the third quarter. Bullseye Asset Management LLC now owns 99,300 shares of the company's stock valued at $3,392,000 after buying an additional 72,300 shares during the last quarter. State of New Jersey Common Pension Fund D purchased a new stake in DigitalOcean in the fourth quarter valued at about $2,358,000. New York State Teachers Retirement System raised its stake in DigitalOcean by 33.0% in the fourth quarter. New York State Teachers Retirement System now owns 49,310 shares of the company's stock valued at $2,373,000 after buying an additional 12,229 shares during the last quarter. Van Berkom & Associates Inc. raised its stake in DigitalOcean by 33.1% in the third quarter. Van Berkom & Associates Inc. now owns 1,564,991 shares of the company's stock valued at $53,460,000 after buying an additional 389,161 shares during the last quarter. Finally, Penserra Capital Management LLC raised its stake in DigitalOcean by 27.2% in the third quarter. Penserra Capital Management LLC now owns 293,132 shares of the company's stock valued at $10,013,000 after buying an additional 62,725 shares during the last quarter. Hedge funds and other institutional investors own 49.77% of the company's stock.

Insider Activity at DigitalOcean

In related news, CFO Matt Steinfort sold 20,000 shares of the stock in a transaction on Tuesday, March 3rd. The stock was sold at an average price of $55.40, for a total value of $1,108,000.00. Following the completion of the transaction, the chief financial officer directly owned 545,916 shares of the company's stock, valued at approximately $30,243,746.40. This represents a 3.53% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CAO Cherie Barrett sold 22,000 shares of the stock in a transaction on Monday, March 2nd. The shares were sold at an average price of $54.77, for a total value of $1,204,940.00. Following the completion of the transaction, the chief accounting officer directly owned 62,469 shares of the company's stock, valued at approximately $3,421,427.13. This represents a 26.05% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.96% of the stock is currently owned by company insiders.

DigitalOcean Stock Up 0.1%

Shares of DOCN opened at $154.98 on Monday. The company has a current ratio of 1.46, a quick ratio of 1.46 and a debt-to-equity ratio of 0.92. DigitalOcean Holdings, Inc. has a 12 month low of $25.56 and a 12 month high of $164.77. The stock's 50 day moving average is $95.94 and its two-hundred day moving average is $67.28. The firm has a market cap of $16.17 billion, a P/E ratio of 67.67 and a beta of 1.42.

DigitalOcean (NYSE:DOCN - Get Free Report) last issued its quarterly earnings data 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 return on equity of 88.86% and a net margin of 24.97%.The company had revenue of $257.91 million for the quarter, compared to analyst estimates of $249.76 million. During the same period last year, the company earned $0.56 earnings per share. DigitalOcean's quarterly revenue was up 22.4% compared to the same quarter last year. DigitalOcean has set its Q2 2026 guidance at 0.200-0.230 EPS and its FY 2026 guidance at 1.100-1.200 EPS. Analysts predict that DigitalOcean Holdings, Inc. will post 0.55 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

DOCN has been the subject of several research analyst reports. UBS Group raised their price objective on DigitalOcean to $175.00 and gave the stock a "neutral" rating in a research note on Tuesday, May 12th. Cantor Fitzgerald raised their price objective on DigitalOcean from $68.00 to $83.00 and gave the stock an "overweight" rating in a research note on Wednesday, February 25th. Bank of America raised their price objective on DigitalOcean from $103.00 to $107.00 and gave the stock a "buy" rating in a research note on Thursday, April 9th. Weiss Ratings restated a "hold (c+)" rating on shares of DigitalOcean in a research note on Friday, March 27th. Finally, Oppenheimer set a $190.00 price objective on DigitalOcean in a research note on Wednesday, May 6th. Nine equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $142.23.

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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