The Manufacturers Life Insurance Company Makes New $10.02 Million Investment in DigitalOcean Holdings, Inc. $DOCN

Key Points

• The Manufacturers Life Insurance Company acquired 63,777 DigitalOcean shares worth approximately $10.02 million in the second quarter, while institutional investors collectively own 49.77% of DOCN.
• DigitalOcean reported quarterly EPS of $0.45, beating estimates of $0.26, and revenue of $281.18 million, up 28.6% year over year and slightly above expectations.
• Analysts maintain a consensus “Buy” rating with an average price target of $152.81, although insiders sold 18,656 shares worth $2.81 million over the past 90 days.

The Manufacturers Life Insurance Company acquired a new stake in shares of DigitalOcean Holdings, Inc. (NYSE:DOCN - Free Report) in the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor acquired 63,777 shares of the company's stock, valued at approximately $10,015,000. The Manufacturers Life Insurance Company owned about 0.06% of DigitalOcean as of its most recent filing with the Securities and Exchange Commission.

Several other large investors have also modified their holdings of the stock. State of New Jersey Common Pension Fund D purchased a new position in DigitalOcean in the 4th quarter worth about $2,358,000. New York State Teachers Retirement System lifted its stake in DigitalOcean by 33.0% during 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 in the last quarter. Legato Capital Management LLC purchased a new stake in DigitalOcean during the fourth quarter valued at about $1,365,000. Summit Creek Advisors LLC acquired a new position in shares of DigitalOcean in the fourth quarter worth about $7,126,000. Finally, Wealth High Governance Asset Management Ltda. purchased a new position in shares of DigitalOcean in the first quarter worth approximately $8,986,000. 49.77% of the stock is owned by institutional investors.

Insider Buying and Selling

In other DigitalOcean news, CAO Cherie Barrett sold 4,456 shares of the business's stock in a transaction dated Thursday, August 13th. The stock was sold at an average price of $132.37, for a total value of $589,840.72. Following the transaction, the chief accounting officer owned 65,487 shares in the company, valued at $8,668,514.19. The trade was a 6.37% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Warren J. Adelman sold 4,200 shares of the company's 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 directly owned 67,433 shares in the company, valued at approximately $8,362,366.33. The trade was a 5.86% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 18,656 shares of company stock worth $2,811,383. Corporate insiders own 0.96% of the company's stock.

Wall Street Analyst Weigh In

DOCN has been the subject of several research analyst reports. William Blair restated an "outperform" rating on shares of DigitalOcean in a research report on Wednesday, July 15th. UBS Group lowered their price objective on shares of DigitalOcean from $155.00 to $140.00 and set a "neutral" rating on the stock in a research report on Wednesday, August 5th. Barclays boosted their target price on shares of DigitalOcean from $160.00 to $161.00 and gave the company an "overweight" rating in a research note on Wednesday, August 5th. Piper Sandler raised their target price on DigitalOcean from $98.00 to $155.00 and gave the stock a "neutral" rating in a research report on Tuesday, May 5th. Finally, Canaccord Genuity Group reiterated a "buy" rating and set a $200.00 price target on shares of DigitalOcean in a report on Friday, July 10th. Two equities research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Buy" and a consensus target price of $152.81.

DigitalOcean Stock Performance

Shares of DOCN opened at $111.50 on Friday. The company's 50 day moving average price is $128.72 and its 200 day moving average price is $115.41. DigitalOcean Holdings, Inc. has a 52 week low of $30.89 and a 52 week high of $187.50. The company has a market capitalization of $11.64 billion, a PE ratio of 50.91, a PEG ratio of 95.20 and a beta of 1.61. The company has a debt-to-equity ratio of 1.14, a quick ratio of 1.31 and a current ratio of 1.31.

DigitalOcean (NYSE:DOCN - Get Free Report) last released its quarterly earnings data on Tuesday, August 4th. The company reported $0.45 earnings per share for the quarter, beating the consensus estimate of $0.26 by $0.19. The firm had revenue of $281.18 million for the quarter, compared to analyst estimates of $279.03 million. DigitalOcean had a net margin of 23.26% and a return on equity of 31.01%. The company's revenue for the quarter was up 28.6% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.39 EPS. DigitalOcean has set its FY 2026 guidance at 1.350-1.400 EPS and its Q3 2026 guidance at 0.280-0.300 EPS. Research analysts expect that DigitalOcean Holdings, Inc. will post 0.63 EPS for the current fiscal year.

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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