DigitalOcean Holdings, Inc. $DOCN Stock: Summit Creek Advisors LLC Grows Holdings

Summit Creek Advisors LLC grew its stake in DigitalOcean Holdings, Inc. (NYSE:DOCN) by 28.8% during the 3rd quarter, Holdings Channel.com reports. The firm owned 44,350 shares of the company’s stock after acquiring an additional 9,918 shares during the period. DigitalOcean accounts for approximately 2.4% of Summit Creek Advisors LLC’s investment portfolio, making the stock its 14th biggest holding. Summit Creek Advisors LLC’s holdings in DigitalOcean were worth $5,916,000 as of its most recent SEC filing.

A number of other hedge funds also recently modified their holdings of the stock. Parallel Advisors LLC boosted its holdings in shares of DigitalOcean by 66.2% during the 1st quarter. Parallel Advisors LLC now owns 324 shares of the company’s stock worth $28,000 after buying an additional 129 shares during the period. Root Financial Partners LLC acquired a new position in DigitalOcean in the 3rd quarter valued at about $31,000. Optiver Holding B.V. grew its stake in DigitalOcean by 1,063.9% in the 1st quarter. Optiver Holding B.V. now owns 419 shares of the company’s stock valued at $36,000 after buying an additional 383 shares during the last quarter. SSI Investment Management LLC bought a new position in DigitalOcean in the 2nd quarter valued at about $37,000. Finally, Hilltop National Bank bought a new position in DigitalOcean in the 2nd quarter valued at about $38,000. Institutional investors and hedge funds own 49.77% of the company’s stock.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on the company. The Goldman Sachs Group reduced their price objective on DigitalOcean from $178.00 to $156.00 and set a “buy” rating for the company in a report on Thursday. Stifel Nicolaus set a $130.00 target price on DigitalOcean in a research report on Tuesday. Piper Sandler upgraded DigitalOcean from a “neutral” rating to an “overweight” rating and lowered their target price for the stock from $142.00 to $126.00 in a research note on Wednesday, October 21st. Oppenheimer lifted their price target on DigitalOcean from $190.00 to $220.00 and gave the stock an “outperform” rating in a report on Wednesday, October 14th. Finally, Canaccord Genuity Group reduced their price target on DigitalOcean from $200.00 to $180.00 and set a “buy” rating for the company in a research note on Wednesday. Two research analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $141.06.

Insider Activity at DigitalOcean

In other news, CFO Matt Steinfort sold 10,000 shares of DigitalOcean stock in a transaction that occurred on 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 in the company, valued at approximately $53,255,355.16. The trade was a 1.95% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. 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. Also, CAO Cherie Barrett sold 4,456 shares of DigitalOcean stock in a transaction that occurred on Thursday, August 13th. The shares were sold at an average price of $132.37, for a total transaction of $589,840.72. Following the completion of the sale, the chief accounting officer owned 65,487 shares of the company’s stock, valued at approximately $8,668,514.19. The trade was a 6.37% 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. Insiders have sold 18,441 shares of company stock worth $2,068,475 over the last ninety days. Insiders own 0.96% of the company’s stock.

DigitalOcean Trading Up 2.2%

DOCN stock opened at $72.23 on Friday. DigitalOcean Holdings, Inc. has a 52 week low of $41.96 and a 52 week high of $187.50. The company has a market capitalization of $8.52 billion, a PE ratio of 233.00, a price-to-earnings-growth ratio of 94.28 and a beta of 1.69. The company’s 50-day simple moving average is $116.36 and its 200 day simple moving average is $111.68. The company has a debt-to-equity ratio of 0.61, a quick ratio of 1.31 and a current ratio of 1.15.

DigitalOcean (NYSE:DOCN) last issued its quarterly earnings data on Tuesday, November 3rd. The company reported $0.45 earnings per share for the quarter, topping the consensus estimate of $0.32 by $0.13. The business had revenue of $321.19 million during the quarter, compared to analysts’ expectations of $306.74 million. DigitalOcean had a net margin of 3.11% and a return on equity of 15.01%. The business’s revenue was up 39.6% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.54 EPS. As a group, sell-side analysts anticipate that DigitalOcean Holdings, Inc. will post 0.65 earnings per share for the current year.

Trending Headlines about DigitalOcean

Here are the key news stories impacting DigitalOcean this week:

• Positive Sentiment: DigitalOcean announced a collaboration with Box, which could expand the reach of its cloud services. The announcement provides no further details in the supplied headline. DigitalOcean announces collaboration with Box
• Positive Sentiment: Earlier coverage pointed to higher guidance and AI revenue growth as reasons for investor optimism. DigitalOcean Stock Jumps On Higher Guidance And AI Revenue Growth
• Neutral Sentiment: Goldman Sachs lowered its price target from $178 to $156 but kept a Buy rating, signaling continued optimism alongside a more cautious valuation. Goldman Sachs price-target update
• Negative Sentiment: UBS, Canaccord Genuity and Citigroup were reported to have cut their price targets or issued a more pessimistic outlook, adding pressure to sentiment. Canaccord nevertheless maintained a Buy rating. UBS Group price-target cut Canaccord Genuity price-target cut Citigroup forecast
• Negative Sentiment: Coverage also highlighted a $1 billion offering and argued DOCN could be substantially below fair value after its results. The offering may raise concerns about financing and potential dilution. DigitalOcean Holdings Could Be 62% Below Fair Value Following Results And $1b Offering

DigitalOcean Profile

DigitalOcean Holdings, Inc provides cloud computing services designed primarily for developers, startups, and small and midsize businesses. Founded in 2011, the company focuses on making it easier for customers to build, deploy, and scale applications without managing their own physical infrastructure.

Its platform includes virtual machines known as Droplets, managed Kubernetes, an application platform, managed databases, object storage, and networking and monitoring tools. These services support tasks ranging from hosting websites and applications to developing and running cloud-native software.

DigitalOcean serves customers around the world through its cloud platform and data center infrastructure.