Principal Financial Group Inc. Purchases 674,231 Shares of DigitalOcean Holdings, Inc. $DOCN

Principal Financial Group Inc. lifted its position in shares of DigitalOcean Holdings, Inc. (NYSE:DOCN) by 155.3% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 1,108,420 shares of the company’s stock after purchasing an additional 674,231 shares during the quarter. Principal Financial Group Inc. owned approximately 1.06% of DigitalOcean worth $95,080,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors and hedge funds have also modified their holdings of DOCN. Fuller & Thaler Asset Management Inc. lifted its position in DigitalOcean by 11.6% in the fourth quarter. Fuller & Thaler Asset Management Inc. now owns 2,420,341 shares of the company’s stock worth $116,467,000 after purchasing an additional 252,303 shares during the period. Lazard Asset Management LLC raised its stake in shares of DigitalOcean by 34.5% in the 2nd quarter. Lazard Asset Management LLC now owns 1,660,731 shares of the company’s stock valued at $47,430,000 after buying an additional 426,264 shares in the last quarter. Van Berkom & Associates Inc. raised its stake in shares of DigitalOcean by 2.9% in the 4th quarter. Van Berkom & Associates Inc. now owns 1,610,671 shares of the company’s stock valued at $77,505,000 after buying an additional 45,680 shares in the last quarter. Dimensional Fund Advisors LP increased its stake in DigitalOcean by 2.4% in the fourth quarter. Dimensional Fund Advisors LP now owns 1,359,695 shares of the company’s stock valued at $65,432,000 after acquiring an additional 31,682 shares during the period. Finally, First Trust Advisors LP increased its stake in DigitalOcean by 19.8% in the fourth quarter. First Trust Advisors LP now owns 1,318,476 shares of the company’s stock valued at $63,445,000 after acquiring an additional 217,457 shares during the period. 49.77% of the stock is currently owned by institutional investors.

Insiders Place Their Bets

In other news, CFO Matt Steinfort sold 25,000 shares of the firm’s stock in a transaction on Friday, May 15th. The stock was sold at an average price of $152.50, for a total value of $3,812,500.00. Following the completion of the sale, the chief financial officer directly owned 573,272 shares in the company, valued at approximately $87,423,980. This trade represents a 4.18% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, Director Hilary Schneider sold 4,338 shares of DigitalOcean stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $156.38, for a total value of $678,376.44. Following the completion of the transaction, the director directly owned 24,323 shares of the company’s stock, valued at $3,803,630.74. This represents a 15.14% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders sold 39,338 shares of company stock worth $6,191,576. Insiders own 0.96% of the company’s stock.

Analyst Ratings Changes

DOCN has been the subject of a number of analyst reports. William Blair restated an “outperform” rating on shares of DigitalOcean in a research note on Wednesday. Barclays increased their target price on DigitalOcean from $183.00 to $184.00 and gave the stock an “overweight” rating in a report on Tuesday, July 7th. Bank of America raised their target price on DigitalOcean from $103.00 to $107.00 and gave the stock a “buy” rating in a research report on Thursday, April 9th. Oppenheimer set a $190.00 price target on DigitalOcean in a research note on Wednesday, May 6th. Finally, Piper Sandler upped their price target on DigitalOcean from $98.00 to $155.00 and gave the company a “neutral” rating in a research report on Tuesday, May 5th. One research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $145.36.

DigitalOcean Stock Performance

NYSE DOCN opened at $119.55 on Thursday. DigitalOcean Holdings, Inc. has a 1-year low of $25.56 and a 1-year high of $187.50. The company has a 50 day moving average of $155.54 and a 200-day moving average of $100.40. The company has a current ratio of 1.46, a quick ratio of 1.46 and a debt-to-equity ratio of 0.92. The firm has a market cap of $12.48 billion, a price-to-earnings ratio of 52.20 and a beta of 1.57.

DigitalOcean (NYSE:DOCN) last announced its earnings results on Tuesday, May 5th. The company reported $0.44 EPS for the quarter, topping the consensus estimate of $0.27 by $0.17. The business had revenue of $257.90 million for the quarter, compared to the consensus estimate of $249.76 million. DigitalOcean had a return on equity of 88.86% and a net margin of 24.97%.DigitalOcean’s revenue was up 22.4% compared to the same quarter last year. During the same period in the previous year, the business earned $0.56 EPS. DigitalOcean has set its Q2 2026 guidance at 0.200-0.230 EPS and its FY 2026 guidance at 1.100-1.200 EPS. On average, equities analysts forecast that DigitalOcean Holdings, Inc. will post 0.56 earnings per share for the current fiscal year.

DigitalOcean News Summary

Here are the key news stories impacting DigitalOcean this week:

• Positive Sentiment: KeyCorp raised its earnings estimates for DigitalOcean across multiple periods, including Q2, Q3, Q4, FY2026 and out years through FY2029, while keeping a Strong-Buy rating. Higher EPS forecasts suggest improving profitability expectations, which can support the stock.
• Positive Sentiment: DigitalOcean announced a plan to repurchase up to $500 million of its 2030 convertible senior notes, funded by a concurrent registered offering. Investors may view this as a balance-sheet optimization move that could reduce future dilution and improve capital structure flexibility. Article Title
• Neutral Sentiment: A Yahoo Finance piece argued that DOCN could be 29% undervalued based on 2026 revenue growth guidance. That supports the bull case, but it is an opinion-based valuation view rather than a company announcement. Article Title
• Neutral Sentiment: KeyCorp’s repeated estimate increases also reinforce the view that DigitalOcean’s earnings trajectory may be improving over the next several years, but these are still analyst projections, not actual results.

DigitalOcean Company 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.