Nicholas Investment Partners LP Makes New $2.98 Million Investment in DigitalOcean Holdings, Inc. $DOCN

Nicholas Investment Partners LP purchased a new stake in DigitalOcean Holdings, Inc. (NYSE:DOCN) during the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund purchased 18,997 shares of the company’s stock, valued at approximately $2,983,000.

Several other large investors also recently modified their holdings of DOCN. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in shares of DigitalOcean by 5.0% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 339,670 shares of the company’s stock valued at $11,342,000 after acquiring an additional 16,162 shares during the period. Intech Investment Management LLC boosted its stake in DigitalOcean by 59.2% during the first quarter. Intech Investment Management LLC now owns 39,429 shares of the company’s stock worth $1,317,000 after acquiring an additional 14,655 shares in the last quarter. Amundi grew its holdings in DigitalOcean by 126,552.2% in the second quarter. Amundi now owns 29,130 shares of the company’s stock worth $827,000 after purchasing an additional 29,107 shares during the period. Jump Financial LLC bought a new stake in DigitalOcean in the second quarter valued at $3,212,000. Finally, Qube Research & Technologies Ltd increased its stake in DigitalOcean by 69.7% in the second quarter. Qube Research & Technologies Ltd now owns 414,643 shares of the company’s stock valued at $11,842,000 after purchasing an additional 170,339 shares in the last quarter. Institutional investors and hedge funds own 49.77% of the company’s stock.

Insider Activity

In other news, CFO Matt Steinfort sold 10,000 shares of the firm’s stock in a transaction that occurred on Tuesday, June 2nd. The stock was 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 in the company, valued at $91,568,068.98. This trade represents a 1.82% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. 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 value of $589,840.72. Following the transaction, the chief accounting officer directly owned 65,487 shares in the company, valued at approximately $8,668,514.19. The trade was a 6.37% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 18,656 shares of company stock worth $2,811,383 over the last 90 days. 0.96% of the stock is currently owned by corporate insiders.

DigitalOcean Trading Down 3.6%

NYSE:DOCN opened at $111.53 on Tuesday. 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 Holdings, Inc. has a one year low of $30.36 and a one year high of $187.50. The company has a market cap of $11.64 billion, a PE ratio of 50.93, a PEG ratio of 98.99 and a beta of 1.61. The firm has a 50-day moving average of $133.48 and a 200-day moving average of $114.23.

DigitalOcean (NYSE:DOCN) last announced its quarterly earnings results 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 business had revenue of $281.18 million for the quarter, compared to analysts’ expectations of $279.03 million. DigitalOcean had a net margin of 23.26% and a return on equity of 31.01%. The firm’s revenue for the quarter was up 28.6% compared to the same quarter last year. During the same quarter last year, the firm 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. As a group, equities research analysts expect that DigitalOcean Holdings, Inc. will post 0.63 EPS for the current fiscal year.

Analyst Ratings Changes

Several analysts have recently commented on the company. Morgan Stanley raised their target price on DigitalOcean from $75.00 to $175.00 and gave the company an “overweight” rating in a research note on Wednesday, May 6th. William Blair reiterated an “outperform” rating on shares of DigitalOcean in a report on Wednesday, July 15th. Oppenheimer set a $190.00 price target on DigitalOcean in a report on Wednesday, May 6th. 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 objective for the company. Finally, Barclays boosted their price objective on DigitalOcean from $160.00 to $161.00 and gave the company an “overweight” rating in a report on Wednesday, August 5th. Two research 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 data from MarketBeat, the stock presently has an average rating of “Buy” and an average price target of $151.33.

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.