DigitalOcean Holdings, Inc. $DOCN is Paragon Capital Management Ltd’s 4th Largest Position

Paragon Capital Management Ltd reduced its position in shares of DigitalOcean Holdings, Inc. (NYSE:DOCN) by 16.9% during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 255,766 shares of the company’s stock after selling 52,076 shares during the period. DigitalOcean accounts for about 7.5% of Paragon Capital Management Ltd’s holdings, making the stock its 4th biggest position. Paragon Capital Management Ltd’s holdings in DigitalOcean were worth $40,163,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also added to or reduced their stakes in the company. Hilltop National Bank bought a new stake in DigitalOcean in the 2nd quarter worth about $38,000. Rakuten Securities Inc. bought a new position in shares of DigitalOcean during the 2nd quarter worth approximately $43,000. Parallel Advisors LLC lifted its position in shares of DigitalOcean by 66.2% during the 1st quarter. Parallel Advisors LLC now owns 324 shares of the company’s stock worth $28,000 after buying an additional 129 shares in the last quarter. Banque Cantonale Vaudoise purchased a new position in shares of DigitalOcean in the 1st quarter worth approximately $33,000. Finally, LRI Investments LLC bought a new position in shares of DigitalOcean in the second quarter valued at approximately $64,000. 49.77% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of analysts recently commented on the company. KeyCorp initiated coverage on DigitalOcean in a report on Tuesday, June 2nd. They set an “overweight” rating and a $200.00 price target on the stock. Truist Financial started coverage on shares of DigitalOcean in a research report on Thursday, August 27th. They set a “buy” rating and a $175.00 price target for the company. Robert W. Baird assumed coverage on shares of DigitalOcean in a report on Tuesday, July 21st. They set an “outperform” rating and a $165.00 price objective for the company. William Blair reaffirmed an “outperform” rating on shares of DigitalOcean in a research report on Wednesday, July 15th. Finally, UBS Group reduced their target price 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, thirteen have given a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Buy” and a consensus target price of $152.81.

DigitalOcean Stock Performance

Shares of DOCN stock traded up $13.79 during trading on Tuesday, reaching $126.26. 4,375,185 shares of the company’s stock traded hands, compared to its average volume of 3,669,071. The firm’s 50-day moving average is $123.78 and its 200 day moving average is $117.63. The company has a market capitalization of $13.18 billion, a P/E ratio of 57.65, a PEG ratio of 96.28 and a beta of 1.57. DigitalOcean Holdings, Inc. has a 1 year low of $33.08 and a 1 year high of $187.50. 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 (NYSE:DOCN) last announced its quarterly earnings results on Tuesday, August 4th. The company reported $0.45 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.26 by $0.19. DigitalOcean had a net margin of 23.26% and a return on equity of 31.01%. The firm had revenue of $281.18 million for the quarter, compared to the consensus estimate of $279.03 million. During the same period in the prior year, the firm posted $0.39 earnings per share. The company’s revenue for the quarter was up 28.6% on a year-over-year basis. DigitalOcean has set its FY 2026 guidance at 1.350-1.400 EPS and its Q3 2026 guidance at 0.280-0.300 EPS. Equities research analysts expect that DigitalOcean Holdings, Inc. will post 0.63 EPS for the current year.

Insider Buying and Selling at DigitalOcean

In other DigitalOcean news, CAO Cherie Barrett sold 4,456 shares of the firm’s stock in a transaction dated Thursday, August 13th. The stock was sold at an average price of $132.37, for a total value of $589,840.72. Following the sale, the chief accounting officer owned 65,487 shares of the company’s stock, valued at $8,668,514.19. This trade represents a 6.37% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Warren J. Adelman sold 4,200 shares of the firm’s stock in a transaction that occurred on Friday, August 7th. The shares were sold at an average price of $124.01, for a total transaction of $520,842.00. Following the completion of the sale, the director directly owned 67,433 shares in the company, valued at $8,362,366.33. This represents a 5.86% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 22,641 shares of company stock valued at $2,589,317 in the last three months. Company insiders own 0.96% of the company’s stock.

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.