Granahan Investment Management LLC Buys Shares of 33,699 DigitalOcean Holdings, Inc. $DOCN

Granahan Investment Management LLC purchased a new stake in DigitalOcean Holdings, Inc. (NYSE:DOCN) during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm purchased 33,699 shares of the company’s stock, valued at approximately $2,891,000.

A number of other institutional investors also recently modified their holdings of the business. Principal Financial Group Inc. lifted its position in shares of DigitalOcean by 155.3% during the 1st quarter. Principal Financial Group Inc. now owns 1,108,420 shares of the company’s stock worth $95,080,000 after buying an additional 674,231 shares during the last quarter. Alyeska Investment Group L.P. acquired a new stake in DigitalOcean in the third quarter valued at about $21,808,000. Arrowstreet Capital Limited Partnership grew its position in 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 last quarter. Franklin Resources Inc. grew its position in DigitalOcean by 784.2% in the fourth quarter. Franklin Resources Inc. now owns 494,314 shares of the company’s stock valued at $23,786,000 after acquiring an additional 438,411 shares during the last quarter. Finally, Danske Bank A S acquired a new position in DigitalOcean during the third quarter worth about $14,582,000. Institutional investors and hedge funds own 49.77% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on DOCN shares. Stifel Nicolaus raised shares of DigitalOcean from a “hold” rating to a “buy” rating and increased their target price for the stock from $135.00 to $160.00 in a report on Tuesday. Weiss Ratings raised shares of DigitalOcean from a “hold (c+)” rating to a “buy (b-)” rating in a report on Friday, July 10th. William Blair reiterated an “outperform” rating on shares of DigitalOcean in a research report on Wednesday, July 15th. Morgan Stanley increased their price objective on shares of DigitalOcean from $75.00 to $175.00 and gave the company an “overweight” rating in a research note on Wednesday, May 6th. Finally, KeyCorp assumed coverage on shares of DigitalOcean in a research report on Tuesday, June 2nd. They issued an “overweight” rating and a $200.00 target price on the stock. Two research analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and two have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Buy” and a consensus price target of $151.93.

Insider Activity at DigitalOcean

In other DigitalOcean news, CFO Matt Steinfort sold 10,000 shares of the company’s stock in a transaction that occurred 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 transaction, the chief financial officer directly owned 538,414 shares in the company, valued at approximately $91,568,068.98. This represents a 1.82% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. 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, Director Hilary Schneider sold 4,338 shares of the company’s stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $156.38, for a total transaction of $678,376.44. Following the completion of the transaction, the director owned 24,323 shares of the company’s stock, valued at approximately $3,803,630.74. This trade represents a 15.14% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 39,338 shares of company stock worth $6,191,576. 0.96% of the stock is owned by corporate insiders.

DigitalOcean Price Performance

DigitalOcean stock opened at $123.65 on Friday. The stock has a 50-day moving average price of $151.20 and a two-hundred day moving average price of $103.88. DigitalOcean Holdings, Inc. has a 12 month low of $25.56 and a 12 month high of $187.50. The company has a market capitalization of $12.90 billion, a PE ratio of 53.99 and a beta of 1.57. The company has a current ratio of 1.46, a quick ratio of 1.46 and a debt-to-equity ratio of 0.92.

DigitalOcean (NYSE:DOCN) last released its quarterly earnings results on Tuesday, May 5th. The company reported $0.44 earnings per share for the quarter, topping 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 analysts’ expectations of $249.76 million. During the same period in the previous year, the business posted $0.56 earnings per share. The business’s quarterly 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. Analysts expect that DigitalOcean Holdings, Inc. will post 0.56 EPS for the current year.

DigitalOcean 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.