Summit Creek Advisors LLC Invests $5.41 Million 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, Holdings Channel reports. The fund purchased 34,432 shares of the company’s stock, valued at approximately $5,407,000. DigitalOcean comprises approximately 1.8% of Summit Creek Advisors LLC’s portfolio, making the stock its 26th largest position.

Several other institutional investors and hedge funds have also recently modified their holdings of the stock. Principal Financial Group Inc. boosted its holdings in shares of DigitalOcean by 155.3% in the first quarter. Principal Financial Group Inc. now owns 1,108,420 shares of the company’s stock valued at $95,080,000 after purchasing an additional 674,231 shares during the period. Alyeska Investment Group L.P. purchased a new position in DigitalOcean during the 3rd quarter worth $21,808,000. Bank of New York Mellon Corp purchased a new position in DigitalOcean during the 2nd quarter worth $98,011,000. Arrowstreet Capital Limited Partnership raised its position in DigitalOcean by 90.9% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 1,194,845 shares of the company’s stock valued at $57,496,000 after purchasing an additional 568,823 shares in the last quarter. Finally, Franklin Resources Inc. raised its position in DigitalOcean by 784.2% during the 4th quarter. Franklin Resources Inc. now owns 494,314 shares of the company’s stock valued at $23,786,000 after purchasing an additional 438,411 shares in the last quarter. Institutional investors own 49.77% of the company’s stock.

DigitalOcean Trading Down 7.5%

DOCN opened at $125.08 on Wednesday. The firm has a market cap 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 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 stock has a fifty day moving average price of $138.21 and a 200-day moving average price of $112.62.

DigitalOcean (NYSE:DOCN) last issued its quarterly earnings data on Tuesday, August 4th. The company reported $0.45 earnings per share for the quarter, beating analysts’ consensus estimates 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 for the quarter, compared to the consensus estimate of $279.03 million. During the same quarter last year, the company earned $0.39 earnings per share. The firm’s revenue for the quarter 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. As a group, equities research analysts anticipate that DigitalOcean Holdings, Inc. will post 0.63 earnings per share for the current fiscal year.

Insider Buying and Selling at DigitalOcean

In other news, CFO Matt Steinfort sold 10,000 shares of the firm’s stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $170.07, for a total value of $1,700,700.00. Following the sale, the chief financial officer directly owned 538,414 shares in the company, valued at approximately $91,568,068.98. This trade represents a 1.82% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible 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 stock was sold at an average price of $132.37, for a total transaction of $589,840.72. Following the completion of 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 SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 18,656 shares of company stock valued at $2,811,383. 0.96% of the stock is currently owned by insiders.

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on the company. UBS Group dropped their price target on DigitalOcean from $155.00 to $140.00 and set a “neutral” rating on the stock in a research report on Wednesday, August 5th. Barclays lifted 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. Morgan Stanley upped their price objective on shares of DigitalOcean from $75.00 to $175.00 and gave the stock an “overweight” rating in a research note on Wednesday, May 6th. Piper Sandler increased their target price on shares of DigitalOcean from $98.00 to $155.00 and gave the stock a “neutral” rating in a report on Tuesday, May 5th. Finally, KeyCorp began coverage on shares of DigitalOcean in a research report on Tuesday, June 2nd. They set an “overweight” rating and a $200.00 target price on the stock. Two equities research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Buy” and an average price target of $151.33.

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.