California State Teachers Retirement System Acquires 23,985 Shares of DigitalOcean Holdings, Inc. $DOCN

California State Teachers Retirement System increased its holdings in DigitalOcean Holdings, Inc. (NYSE:DOCN) by 37.4% during the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 88,179 shares of the company’s stock after purchasing an additional 23,985 shares during the period. California State Teachers Retirement System’s holdings in DigitalOcean were worth $7,564,000 as of its most recent SEC filing.

Other institutional investors have also added to or reduced their stakes in the company. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in shares of DigitalOcean by 5.0% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 339,670 shares of the company’s stock valued at $11,342,000 after buying an additional 16,162 shares during the last quarter. Intech Investment Management LLC boosted its position in shares of DigitalOcean by 59.2% during the first quarter. Intech Investment Management LLC now owns 39,429 shares of the company’s stock worth $1,317,000 after acquiring an additional 14,655 shares during the last quarter. Amundi boosted its position in shares of DigitalOcean by 126,552.2% during the second quarter. Amundi now owns 29,130 shares of the company’s stock worth $827,000 after acquiring an additional 29,107 shares during the last quarter. Jump Financial LLC purchased a new position in DigitalOcean during the second quarter valued at $3,212,000. Finally, Qube Research & Technologies Ltd grew its stake in DigitalOcean by 69.7% during the second quarter. Qube Research & Technologies Ltd now owns 414,643 shares of the company’s stock valued at $11,842,000 after acquiring an additional 170,339 shares in the last quarter. 49.77% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at DigitalOcean

In other DigitalOcean news, CFO Matt Steinfort sold 25,000 shares of the stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $152.50, for a total transaction of $3,812,500.00. Following the completion of the sale, the chief financial officer directly owned 573,272 shares of the company’s stock, valued at approximately $87,423,980. This represents a 4.18% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, Director Hilary Schneider sold 4,338 shares of the 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 sale, the director directly owned 24,323 shares of the company’s stock, valued at $3,803,630.74. The trade was a 15.14% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 39,338 shares of company stock worth $6,191,576. 0.96% of the stock is currently owned by corporate insiders.

DigitalOcean Stock Performance

DigitalOcean stock opened at $129.11 on Wednesday. The company has a debt-to-equity ratio of 0.92, a quick ratio of 1.46 and a current ratio of 1.46. The company has a market capitalization of $13.47 billion, a PE ratio of 56.38 and a beta of 1.61. The company has a 50 day moving average price of $145.98 and a 200-day moving average price of $107.48. DigitalOcean Holdings, Inc. has a fifty-two week low of $28.79 and a fifty-two week high of $187.50.

DigitalOcean (NYSE:DOCN) last announced its quarterly earnings data on Tuesday, August 4th. The company reported $0.45 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.26 by $0.19. The company had revenue of $281.18 million for the quarter, compared to analysts’ expectations of $279.03 million. DigitalOcean had a return on equity of 88.86% and a net margin of 24.97%.DigitalOcean’s revenue was up 28.6% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.39 earnings per share. 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 analysts forecast that DigitalOcean Holdings, Inc. will post 0.57 earnings per share for the current year.

Analysts Set New Price Targets

DOCN has been the topic of several research analyst reports. Morgan Stanley boosted their price target 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. Barclays cut their price objective on DigitalOcean from $184.00 to $160.00 and set an “overweight” rating for the company in a research report on Tuesday, July 21st. The Goldman Sachs Group lifted their price objective on DigitalOcean from $78.00 to $179.00 and gave the stock a “buy” rating in a research note on Wednesday, May 6th. Weiss Ratings cut shares of DigitalOcean from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Tuesday, July 28th. Finally, Stifel Nicolaus upgraded DigitalOcean from a “hold” rating to a “buy” rating and raised their price target for the stock from $135.00 to $160.00 in a research report on Tuesday, July 21st. Two research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $151.93.

DigitalOcean News Summary

Here are the key news stories impacting DigitalOcean this week:

• Positive Sentiment: Q2 results exceeded expectations. DigitalOcean reported adjusted earnings of $0.45 per share, above the $0.26 consensus estimate, while revenue rose 28.6% year over year to $281.18 million, slightly ahead of the $279.03 million forecast. DigitalOcean Beats Q2 Earnings and Revenue Estimates
• Positive Sentiment: Management raised its 2026 outlook. Full-year EPS guidance was increased to $1.35-$1.40, versus the $1.06 analyst consensus. Revenue guidance was raised to approximately $1.2 billion, ahead of the roughly $1.1 billion consensus. Third-quarter guidance also exceeded expectations, with revenue of $304-$307 million and EPS of $0.28-$0.30. DigitalOcean Announces Second Quarter 2026 Financial Results
• Positive Sentiment: AI-related demand is improving growth prospects. The company forecast approximately 30.5% revenue growth for 2026 and a greater-than-35% exit growth rate as inference services scale, providing a potential catalyst for continued expansion. DigitalOcean Forecasts 2026 Revenue Growth
• Neutral Sentiment: Investor reaction has been mixed. DOCN initially declined sharply despite the quarterly beat and raised guidance, indicating that elevated expectations or valuation concerns may be limiting the positive response. The stock later recovered, leaving trading unusually volatile.
• Negative Sentiment: Valuation remains a risk. DigitalOcean trades at a relatively high earnings multiple, so continued upside may depend on the company delivering the accelerated growth and AI-related expansion embedded in its revised outlook.

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.