Teachers Retirement System of The State of Kentucky lifted its stake in DigitalOcean Holdings, Inc. (NYSE:DOCN – Free Report) by 94.5% during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 31,998 shares of the company’s stock after acquiring an additional 15,544 shares during the period. Teachers Retirement System of The State of Kentucky’s holdings in DigitalOcean were worth $2,745,000 at the end of the most recent reporting period.
Other institutional investors and hedge funds have also bought and sold shares of the company. Allworth Financial LP raised its stake in DigitalOcean by 54.4% during the 3rd quarter. Allworth Financial LP now owns 724 shares of the company’s stock valued at $25,000 after purchasing an additional 255 shares during the last quarter. Huntington National Bank grew its position in DigitalOcean by 638.3% in the 4th quarter. Huntington National Bank now owns 598 shares of the company’s stock worth $29,000 after purchasing an additional 517 shares during the last quarter. NBC Securities Inc. bought a new position in shares of DigitalOcean during the 4th quarter worth about $32,000. Banque Cantonale Vaudoise bought a new position in shares of DigitalOcean during the 1st quarter worth about $33,000. Finally, Wilmington Savings Fund Society FSB acquired a new position in shares of DigitalOcean during the third quarter valued at about $37,000. Institutional investors own 49.77% of the company’s stock.
Key DigitalOcean News
Here are the key news stories impacting DigitalOcean this week:
- Positive Sentiment: KeyCorp raised its FY2026 EPS estimate for DigitalOcean to $0.51 from $0.47 and kept a Strong-Buy rating, signaling improved near-term earnings expectations.
- Positive Sentiment: KeyCorp also lifted its Q2 2026 EPS forecast to $0.09 from $0.07, suggesting the company may be performing better than previously expected in the current quarter.
- Positive Sentiment: Higher estimates for Q3 2026, Q4 2026, FY2027, FY2028, and FY2029 point to sustained margin and earnings expansion over multiple years, which is typically supportive for valuation.
- Positive Sentiment: A recent preview from Zacks highlighted AI-driven growth and enterprise wins, noting stronger revenue visibility from major AI customer commitments and longer contract durations. Article title: DigitalOcean’s Q2 Preview Signals AI-Driven Growth & Enterprise Wins
- Neutral Sentiment: Despite the improved outlook, KeyCorp’s FY2026 estimate of $0.51 EPS is still slightly below the current consensus of $0.55, so the near-term view is positive but not dramatically above Street expectations.
DigitalOcean Stock Up 2.5%
DigitalOcean (NYSE:DOCN – Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The company reported $0.44 earnings per share for the quarter, beating the consensus estimate of $0.27 by $0.17. DigitalOcean had a return on equity of 88.86% and a net margin of 24.97%.The company had revenue of $257.90 million for the quarter, compared to analyst estimates of $249.76 million. During the same period in the prior year, the company posted $0.56 EPS. The company’s revenue was up 22.4% compared to the same quarter last year. DigitalOcean has set its Q2 2026 guidance at 0.200-0.230 EPS and its FY 2026 guidance at 1.100-1.200 EPS. Equities analysts predict that DigitalOcean Holdings, Inc. will post 0.56 EPS for the current fiscal year.
Insider Buying and Selling at DigitalOcean
In other DigitalOcean news, Director Hilary Schneider sold 4,338 shares of the company’s stock in a transaction on Friday, May 15th. The stock was sold at an average price of $156.38, for a total value of $678,376.44. Following the sale, the director directly owned 24,323 shares in the company, valued at $3,803,630.74. This represents a 15.14% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CFO Matt Steinfort sold 10,000 shares of the company’s stock in a transaction on 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 completion of the sale, 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 disclosure for this sale is available in the SEC filing. 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. In the last ninety days, insiders sold 39,338 shares of company stock worth $6,191,576. 0.96% of the stock is owned by insiders.
Analysts Set New Price Targets
Several research firms recently weighed in on DOCN. The Goldman Sachs Group increased their target price on shares of DigitalOcean from $78.00 to $179.00 and gave the company a “buy” rating in a research note on Wednesday, May 6th. Morgan Stanley boosted their price target on DigitalOcean from $75.00 to $175.00 and gave the company an “overweight” rating in a research note on Wednesday, May 6th. Piper Sandler lifted their price objective on DigitalOcean from $98.00 to $155.00 and gave the stock a “neutral” rating in a report on Tuesday, May 5th. KeyCorp initiated coverage on DigitalOcean in a research report on Tuesday, June 2nd. They set an “overweight” rating and a $200.00 price objective on the stock. Finally, Bank of America upped their target price on DigitalOcean from $103.00 to $107.00 and gave the company a “buy” rating in a research note on Thursday, April 9th. One analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and two have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $145.36.
Get Our Latest Research Report on DigitalOcean
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.
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