VIRGINIA RETIREMENT SYSTEMS ET Al Buys New Stake in DigitalOcean Holdings, Inc. $DOCN

Key Points

• Virginia Retirement Systems purchased 16,300 DigitalOcean shares worth approximately $2.56 million in the second quarter. Institutional investors and hedge funds now own 49.77% of the company.
• DigitalOcean reported quarterly EPS of $0.45, beating the $0.26 consensus estimate, while revenue rose 28.6% year over year to $281.18 million. The company issued fiscal 2026 EPS guidance of $1.35 to $1.40.
• Analyst sentiment remains positive overall, with a “Moderate Buy” consensus and an average price target of $152.81, although Weiss Ratings downgraded the stock to “hold.” Shares recently opened at $130.78.

VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new position in shares of DigitalOcean Holdings, Inc. (NYSE:DOCN - Free Report) in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor purchased 16,300 shares of the company's stock, valued at approximately $2,560,000.

Several other large investors have also recently added to or reduced their stakes in the stock. Hilltop National Bank purchased a new position in DigitalOcean in the second quarter valued at about $38,000. Rakuten Securities Inc. acquired a new stake in shares of DigitalOcean in the second quarter valued at about $43,000. Parallel Advisors LLC grew its stake in shares of DigitalOcean by 66.2% in the first quarter. Parallel Advisors LLC now owns 324 shares of the company's stock valued at $28,000 after buying an additional 129 shares in the last quarter. Banque Cantonale Vaudoise purchased a new stake in shares of DigitalOcean during the 1st quarter valued at about $33,000. Finally, LRI Investments LLC acquired a new position in DigitalOcean during the 2nd quarter worth approximately $64,000. 49.77% of the stock is currently owned by institutional investors and hedge funds.

DigitalOcean Stock Down 1.4%

Shares of NYSE:DOCN opened at $130.78 on Friday. The firm has a market cap of $13.65 billion, a PE ratio of 59.72, a price-to-earnings-growth ratio of 113.57 and a beta of 1.57. The company has a fifty day simple moving average of $122.95 and a 200 day simple moving average of $118.97. The company has a current ratio of 1.31, a quick ratio of 1.31 and a debt-to-equity ratio of 1.14. DigitalOcean Holdings, Inc. has a 12-month low of $33.69 and a 12-month high of $187.50.

DigitalOcean (NYSE:DOCN - Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The company reported $0.45 EPS for the quarter, beating analysts' consensus estimates of $0.26 by $0.19. The firm had revenue of $281.18 million for the quarter, compared to the consensus estimate of $279.03 million. DigitalOcean had a net margin of 23.26% and a return on equity of 31.01%. The firm's revenue was up 28.6% compared to the same quarter last year. During the same period in the prior year, the firm posted $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. On average, equities research analysts anticipate that DigitalOcean Holdings, Inc. will post 0.63 EPS for the current fiscal year.

Wall Street Analyst Weigh In

DOCN has been the topic of a number of recent research reports. Weiss Ratings cut shares of DigitalOcean from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Wednesday. Stifel Nicolaus raised shares of DigitalOcean from a "hold" rating to a "buy" rating and lifted their price target for the stock from $135.00 to $160.00 in a research note on Tuesday, July 21st. Canaccord Genuity Group reiterated a "buy" rating and issued a $200.00 price objective on shares of DigitalOcean in a report on Friday, July 10th. UBS Group decreased their price objective on shares of DigitalOcean from $155.00 to $140.00 and set a "neutral" rating for the company in a research report on Wednesday, August 5th. Finally, Barclays raised their target price on DigitalOcean from $160.00 to $161.00 and gave the company an "overweight" rating in a research note on Wednesday, August 5th. Two investment analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat, DigitalOcean presently has a consensus rating of "Moderate Buy" and a consensus price target of $152.81.

Insider Transactions at DigitalOcean

In related news, CAO Cherie Barrett sold 4,456 shares of DigitalOcean 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 completion of the transaction, the chief accounting officer directly owned 65,487 shares in the company, valued at approximately $8,668,514.19. This trade represents a 6.37% 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. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Matt Steinfort sold 10,000 shares of the business's stock in a transaction dated Thursday, September 3rd. The shares were sold at an average price of $105.73, for a total value of $1,057,300.00. Following the completion of the sale, the chief financial officer directly owned 503,692 shares of the company's stock, valued at approximately $53,255,355.16. This represents a 1.95% decrease in their ownership of the stock. 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 90 days, insiders have sold 22,641 shares of company stock valued at $2,589,317. Insiders own 0.96% of the company's stock.

About DigitalOcean

DigitalOcean Holdings, Inc provides cloud computing services designed primarily for developers, startups, and small and medium-sized businesses. Its platform offers on-demand infrastructure and developer tools intended to simplify the process of building, deploying, and scaling applications.

The company's products include virtual machines known as Droplets, managed Kubernetes, managed databases, object storage through Spaces, block storage, networking services, and App Platform, a platform-as-a-service offering for application deployment.

Want to see what other hedge funds are holding DOCN? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for DigitalOcean Holdings, Inc. (NYSE:DOCN - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.