Wealth Effects LLC Invests $6.88 Million in DigitalOcean Holdings, Inc. $DOCN

Wealth Effects LLC acquired a new position in shares of DigitalOcean Holdings, Inc. (NYSE:DOCN) in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund acquired 43,835 shares of the company’s stock, valued at approximately $6,883,000. DigitalOcean comprises about 1.9% of Wealth Effects LLC’s investment portfolio, making the stock its 12th largest holding.

Several other hedge funds have also recently added to or reduced their stakes in the business. Principal Financial Group Inc. grew its holdings in DigitalOcean by 155.3% in the 1st quarter. Principal Financial Group Inc. now owns 1,108,420 shares of the company’s stock valued at $95,080,000 after buying an additional 674,231 shares during the last quarter. Alyeska Investment Group L.P. acquired a new position in shares of DigitalOcean during the third quarter worth approximately $21,808,000. Bank of New York Mellon Corp bought a new stake in shares of DigitalOcean in the second quarter valued at approximately $98,011,000. Arrowstreet Capital Limited Partnership boosted its position in shares of DigitalOcean by 90.9% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 1,194,845 shares of the company’s stock valued at $57,496,000 after acquiring an additional 568,823 shares during the period. Finally, Franklin Resources Inc. grew its stake in shares of DigitalOcean by 784.2% in the fourth quarter. Franklin Resources Inc. now owns 494,314 shares of the company’s stock worth $23,786,000 after acquiring an additional 438,411 shares during the last quarter. Institutional investors own 49.77% of the company’s stock.

Analyst Ratings Changes

A number of brokerages recently issued reports on DOCN. Robert W. Baird began coverage on shares of DigitalOcean in a research report on Tuesday, July 21st. They set an “outperform” rating and a $165.00 target price on the stock. Stifel Nicolaus raised shares of DigitalOcean from a “hold” rating to a “buy” rating and increased their price target for the company from $135.00 to $160.00 in a report on Tuesday, July 21st. Canaccord Genuity Group restated a “buy” rating and issued a $200.00 price target on shares of DigitalOcean in a research report on Friday, July 10th. Barclays boosted their price objective on shares of DigitalOcean from $160.00 to $161.00 and gave the stock an “overweight” rating in a report on Wednesday, August 5th. Finally, UBS Group cut their price objective on shares of DigitalOcean from $155.00 to $140.00 and set a “neutral” rating for the company in a research report on Wednesday, August 5th. Two analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Buy” and an average price target of $151.33.

DigitalOcean Stock Performance

DOCN opened at $129.95 on Monday. The stock has a market cap of $13.56 billion, a PE ratio of 59.34, a P/E/G 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 1 year low of $29.62 and a 1 year high of $187.50. The stock’s 50 day simple moving average is $139.76 and its 200-day simple moving average is $111.64.

DigitalOcean (NYSE:DOCN) last issued its earnings results on Tuesday, August 4th. The company reported $0.45 EPS for the quarter, topping the consensus estimate of $0.26 by $0.19. The firm had revenue of $281.18 million during the quarter, compared to analysts’ expectations of $279.03 million. DigitalOcean had a return on equity of 31.01% and a net margin of 23.26%.During the same period last year, the business earned $0.39 earnings per share. DigitalOcean’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. Sell-side analysts forecast that DigitalOcean Holdings, Inc. will post 0.63 EPS for the current year.

Insiders Place Their Bets

In other news, Director Warren J. Adelman sold 4,200 shares of DigitalOcean stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $124.01, for a total transaction of $520,842.00. Following the sale, the director directly owned 67,433 shares in the company, valued at approximately $8,362,366.33. The trade was a 5.86% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Matt Steinfort sold 10,000 shares of the company’s stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $170.07, for a total transaction of $1,700,700.00. Following the completion of the sale, the chief financial officer directly owned 538,414 shares in the company, valued at approximately $91,568,068.98. The trade was a 1.82% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Corporate insiders own 0.96% of the company’s stock.

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.