Summit Creek Advisors LLC Purchases New Position in DigitalOcean Holdings, Inc. $DOCN

Summit Creek Advisors LLC purchased a new stake in shares of DigitalOcean Holdings, Inc. (NYSE:DOCN) in the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The firm purchased 34,432 shares of the company’s stock, valued at approximately $5,407,000. DigitalOcean makes up 1.8% of Summit Creek Advisors LLC’s holdings, making the stock its 26th biggest holding.

Other large investors have also added to or reduced their stakes in the company. State of New Jersey Common Pension Fund D bought a new stake in DigitalOcean in the fourth quarter worth $2,358,000. New York State Teachers Retirement System lifted its position in DigitalOcean by 33.0% during the fourth quarter. New York State Teachers Retirement System now owns 49,310 shares of the company’s stock valued at $2,373,000 after purchasing an additional 12,229 shares during the last quarter. Legato Capital Management LLC bought a new position in DigitalOcean during the fourth quarter valued at $1,365,000. Wealth High Governance Asset Management Ltda. purchased a new position in shares of DigitalOcean in the 1st quarter worth $8,986,000. Finally, Spectrum Strategic Capital Management LLC purchased a new position in shares of DigitalOcean in the 4th quarter worth $606,000. Institutional investors own 49.77% of the company’s stock.

DigitalOcean Stock Performance

Shares of NYSE:DOCN opened at $125.08 on Wednesday. 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 $29.62 and a 12 month high of $187.50. The company has a market capitalization of $13.05 billion, a price-to-earnings ratio of 57.12, a PEG ratio of 111.22 and a beta of 1.61. The firm’s 50-day moving average is $138.21 and its 200 day moving average is $112.62.

DigitalOcean (NYSE:DOCN) last announced its quarterly earnings data 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 net margin of 23.26% and a return on equity of 31.01%. The business had revenue of $281.18 million during the quarter, compared to the consensus estimate of $279.03 million. During the same quarter last year, the firm earned $0.39 earnings per share. The firm’s quarterly revenue was up 28.6% compared to the same quarter last year. DigitalOcean has set its FY 2026 guidance at 1.350-1.400 EPS and its Q3 2026 guidance at 0.280-0.300 EPS. Research analysts predict that DigitalOcean Holdings, Inc. will post 0.63 EPS for the current year.

Analysts Set New Price Targets

DOCN has been the topic of several recent research reports. Morgan Stanley upped their target price on shares of DigitalOcean from $75.00 to $175.00 and gave the company an “overweight” rating in a research report on Wednesday, May 6th. KeyCorp began coverage on DigitalOcean in a research note on Tuesday, June 2nd. They set an “overweight” rating and a $200.00 price objective on the stock. Barclays raised their price objective on DigitalOcean from $160.00 to $161.00 and gave the company an “overweight” rating in a research note on Wednesday, August 5th. Citigroup lifted their target price on DigitalOcean from $185.00 to $190.00 and gave the stock a “buy” rating in a report on Wednesday, August 5th. Finally, Weiss Ratings raised DigitalOcean from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Tuesday, August 11th. Two equities research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and two have given a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of “Buy” and a consensus target price of $151.33.

Insider Buying and Selling

In other DigitalOcean news, Director Warren J. Adelman sold 4,200 shares of the company’s stock in a transaction on Friday, August 7th. The stock was sold at an average price of $124.01, for a total value of $520,842.00. Following the transaction, the director owned 67,433 shares of the company’s stock, valued at $8,362,366.33. This represents a 5.86% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CAO Cherie Barrett sold 4,456 shares of the stock in a transaction on 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 sale, the chief accounting officer 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. In the last three months, insiders sold 18,656 shares of company stock valued at $2,811,383. Insiders own 0.96% of the company’s stock.

About DigitalOcean

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.