Sterling Capital Management LLC Cuts Holdings in DigitalOcean Holdings, Inc. $DOCN

Key Points

• Sterling Capital Management cut its DigitalOcean stake by 57.1% in the first quarter, leaving it with 14,833 shares valued at about $1.27 million.
• Insiders sold shares recently, including Director Hilary Schneider and CFO Matt Steinfort, while company insiders now own just 0.96% of the stock.
• DigitalOcean beat earnings estimates for the latest quarter and reported 22.4% revenue growth year over year, while analysts remain broadly bullish with a consensus Moderate Buy rating and a $146.36 target price.

Sterling Capital Management LLC trimmed its position in DigitalOcean Holdings, Inc. (NYSE:DOCN - Free Report) by 57.1% during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 14,833 shares of the company's stock after selling 19,749 shares during the quarter. Sterling Capital Management LLC's holdings in DigitalOcean were worth $1,272,000 at the end of the most recent reporting period.

A number of other hedge funds also recently made changes to their positions in DOCN. Alyeska Investment Group L.P. bought a new position in DigitalOcean during the third quarter valued at approximately $21,808,000. Arrowstreet Capital Limited Partnership increased its stake in DigitalOcean by 90.9% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 1,194,845 shares of the company's stock worth $57,496,000 after acquiring an additional 568,823 shares during the last quarter. Franklin Resources Inc. raised its holdings in shares of DigitalOcean by 784.2% during the 4th quarter. Franklin Resources Inc. now owns 494,314 shares of the company's stock worth $23,786,000 after acquiring an additional 438,411 shares in the last quarter. Danske Bank A S bought a new position in shares of DigitalOcean during the 3rd quarter valued at approximately $14,582,000. Finally, Lazard Asset Management LLC boosted its position in shares of DigitalOcean by 34.5% during the 2nd quarter. Lazard Asset Management LLC now owns 1,660,731 shares of the company's stock valued at $47,430,000 after acquiring an additional 426,264 shares during the last quarter. 49.77% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity at DigitalOcean

In other news, Director Hilary Schneider sold 4,338 shares of the 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 sale, 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 ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CFO Matt Steinfort sold 10,000 shares of the business's stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $170.07, for a total value of $1,700,700.00. Following the transaction, the chief financial officer owned 538,414 shares of the company's stock, valued at approximately $91,568,068.98. The trade was a 1.82% decrease in their position. The SEC filing for this sale provides additional information. 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. Over the last quarter, insiders sold 39,338 shares of company stock worth $6,191,576. Company insiders own 0.96% of the company's stock.

Analysts Set New Price Targets

A number of research firms recently weighed in on DOCN. UBS Group raised their target price on shares of DigitalOcean to $175.00 and gave the company a "neutral" rating in a report on Tuesday, May 12th. Barclays increased their price objective on shares of DigitalOcean from $105.00 to $183.00 and gave the company an "overweight" rating in a research report on Wednesday, May 6th. KeyCorp started coverage on shares of DigitalOcean in a report on Tuesday, June 2nd. They issued an "overweight" rating and a $200.00 target price on the stock. Citizens Jmp upped their target price on shares of DigitalOcean from $83.00 to $105.00 and gave the company a "market outperform" rating in a research report on Thursday, March 26th. Finally, Oppenheimer set a $190.00 price target on shares of DigitalOcean in a report on Wednesday, May 6th. One research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat.com, DigitalOcean has an average rating of "Moderate Buy" and a consensus target price of $146.36.

DigitalOcean Trading Up 7.3%

DOCN stock opened at $149.46 on Tuesday. DigitalOcean Holdings, Inc. has a twelve month low of $25.56 and a twelve month high of $187.50. The stock has a market capitalization of $15.60 billion, a price-to-earnings ratio of 65.27 and a beta of 1.59. The company has a quick ratio of 1.46, a current ratio of 1.46 and a debt-to-equity ratio of 0.92. The firm's fifty day simple moving average is $148.48 and its two-hundred day simple moving average is $93.09.

DigitalOcean (NYSE:DOCN - Get Free Report) last released its quarterly earnings results on Tuesday, May 5th. The company reported $0.44 EPS for the quarter, topping analysts' consensus estimates of $0.27 by $0.17. The firm had revenue of $257.90 million during the quarter, compared to analysts' expectations of $249.76 million. DigitalOcean had a net margin of 24.97% and a return on equity of 88.86%. The firm's revenue for the quarter was up 22.4% compared to the same quarter last year. During the same period in the previous year, the company earned $0.56 EPS. DigitalOcean has set its Q2 2026 guidance at 0.200-0.230 EPS and its FY 2026 guidance at 1.100-1.200 EPS. As a group, analysts anticipate that DigitalOcean Holdings, Inc. will post 0.54 earnings per share for the current 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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