Wealth Effects LLC Acquires Shares of 43,835 DigitalOcean Holdings, Inc. $DOCN

Key Points

• Wealth Effects LLC acquired 43,835 DigitalOcean shares worth approximately $6.9 million, making the company its 12th-largest holding at 1.9% of the portfolio. Institutional investors and hedge funds collectively own 49.77% of DigitalOcean.
• Analyst sentiment remains positive, with a consensus “Buy” rating and average price target of $151.33. Price targets range from $140 at UBS, which rated the stock neutral, to $200 from KeyCorp.
• DigitalOcean reported quarterly EPS of $0.45, exceeding the $0.26 consensus estimate, while revenue rose 28.6% year over year to $281.18 million. Shares opened at $129.95, compared with a 52-week range of $29.62 to $187.50.

Wealth Effects LLC bought a new position in 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 bought 43,835 shares of the company's stock, valued at approximately $6,883,000. DigitalOcean makes up about 1.9% of Wealth Effects LLC's holdings, making the stock its 12th biggest holding.

A number of other institutional investors also recently modified their holdings of the stock. Hilltop National Bank purchased a new position in shares of DigitalOcean during the 2nd quarter valued at $38,000. Parallel Advisors LLC raised its holdings in shares of DigitalOcean by 66.2% during the first quarter. Parallel Advisors LLC now owns 324 shares of the company's stock worth $28,000 after acquiring an additional 129 shares in the last quarter. Banque Cantonale Vaudoise acquired a new stake in DigitalOcean during the first quarter valued at $33,000. LRI Investments LLC acquired a new stake in DigitalOcean during the second quarter valued at $64,000. Finally, Optiver Holding B.V. grew its stake in DigitalOcean by 1,063.9% in the first quarter. Optiver Holding B.V. now owns 419 shares of the company's stock valued at $36,000 after purchasing an additional 383 shares in the last quarter. Institutional investors and hedge funds own 49.77% of the company's stock.

Analyst Ratings Changes

Several research analysts have weighed in on the company. Barclays upped their target price on DigitalOcean from $160.00 to $161.00 and gave the stock an "overweight" rating in a research report on Wednesday, August 5th. Robert W. Baird initiated coverage on DigitalOcean in a research note on Tuesday, July 21st. They issued an "outperform" rating and a $165.00 price target for the company. KeyCorp initiated coverage on DigitalOcean in a report on Tuesday, June 2nd. They issued an "overweight" rating and a $200.00 price objective on the stock. UBS Group cut 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. Finally, Piper Sandler lifted their target price on shares of DigitalOcean from $98.00 to $155.00 and gave the company a "neutral" rating in a research note on Tuesday, May 5th. Two investment analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and two have issued a Hold rating to the company. According to MarketBeat, the company presently has a consensus rating of "Buy" and an average price target of $151.33.

Insider Buying and Selling

In other news, Director Warren J. Adelman sold 4,200 shares of the business's stock in a transaction on Friday, August 7th. The shares were sold at an average price of $124.01, for a total value of $520,842.00. Following the completion of the sale, 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. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Matt Steinfort sold 10,000 shares of the company's stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $170.07, for a total transaction of $1,700,700.00. Following the sale, the chief financial officer directly owned 538,414 shares of the company's stock, valued at approximately $91,568,068.98. This represents a 1.82% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 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. 0.96% of the stock is owned by corporate insiders.

DigitalOcean Price Performance

NYSE DOCN opened at $129.95 on Monday. DigitalOcean Holdings, Inc. has a fifty-two week low of $29.62 and a fifty-two week high of $187.50. The stock's 50-day moving average is $139.76 and its two-hundred day moving average is $111.64. The firm has a market cap of $13.56 billion, a P/E ratio of 59.34, a price-to-earnings-growth ratio of 111.22 and a beta of 1.61. The company has a debt-to-equity ratio of 1.14, a current ratio of 1.31 and a quick ratio of 1.31.

DigitalOcean (NYSE:DOCN - Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The company reported $0.45 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.26 by $0.19. DigitalOcean had a return on equity of 31.01% and a net margin of 23.26%.The company had revenue of $281.18 million during the quarter, compared to the consensus estimate of $279.03 million. During the same quarter in the prior year, the company posted $0.39 EPS. The firm's revenue was up 28.6% on a year-over-year basis. 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, analysts anticipate that DigitalOcean Holdings, Inc. will post 0.63 earnings per share 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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