DigitalOcean (NYSE:DOCN) Updates FY25 Earnings Guidance

DigitalOcean (NYSE:DOCN) updated its FY25 earnings guidance on Tuesday. The company provided earnings per share (EPS) guidance of $1.85-1.95 for the period, compared to the consensus estimate of $1.84. The company issued revenue guidance of $870-890 million, compared to the consensus revenue estimate of $877.68 million. DigitalOcean also updated its Q1 guidance to $0.41-0.46 EPS.

Analysts Set New Price Targets

DOCN has been the subject of a number of research reports. Citigroup assumed coverage on DigitalOcean in a report on Friday, January 24th. They issued a “buy” rating and a $45.00 price objective for the company. Morgan Stanley upgraded shares of DigitalOcean from an “equal weight” rating to an “overweight” rating and upped their price target for the company from $40.00 to $41.00 in a research report on Thursday, January 16th. Needham & Company LLC reissued a “hold” rating on shares of DigitalOcean in a research report on Tuesday, November 5th. Cantor Fitzgerald assumed coverage on shares of DigitalOcean in a research note on Friday, January 17th. They issued a “neutral” rating and a $39.00 price objective on the stock. Finally, JMP Securities increased their target price on shares of DigitalOcean from $47.00 to $55.00 and gave the stock a “market outperform” rating in a research note on Monday, January 27th. Six research analysts have rated the stock with a hold rating and five have issued a buy rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $42.40.

DigitalOcean Price Performance

NYSE DOCN opened at $37.18 on Tuesday. The company has a market cap of $3.43 billion, a P/E ratio of 43.74, a P/E/G ratio of 3.12 and a beta of 1.81. DigitalOcean has a 12 month low of $26.63 and a 12 month high of $47.02. The company has a 50-day moving average of $38.64 and a 200-day moving average of $39.05.

DigitalOcean (NYSE:DOCN) last issued its quarterly earnings results on Tuesday, February 25th. The company reported $0.49 EPS for the quarter, topping the consensus estimate of $0.34 by $0.15. The firm had revenue of $204.90 million during the quarter, compared to analyst estimates of $200.54 million. DigitalOcean had a net margin of 10.86% and a negative return on equity of 43.11%. DigitalOcean’s revenue for the quarter was up 13.3% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.44 earnings per share. As a group, equities research analysts anticipate that DigitalOcean will post 1.01 EPS for the current year.

Insider Buying and Selling

In other news, CFO Matt Steinfort sold 12,498 shares of the business’s stock in a transaction dated Wednesday, December 4th. The stock was sold at an average price of $40.00, for a total transaction of $499,920.00. Following the completion of the sale, the chief financial officer now owns 517,498 shares in the company, valued at approximately $20,699,920. The trade was a 2.36 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Bratin Saha sold 4,289 shares of the stock in a transaction that occurred on Tuesday, January 21st. The stock was sold at an average price of $36.80, for a total transaction of $157,835.20. Following the sale, the insider now directly owns 372,762 shares of the company’s stock, valued at approximately $13,717,641.60. This trade represents a 1.14 % decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 20,255 shares of company stock valued at $790,163. 0.74% of the stock is currently owned by company insiders.

DigitalOcean Company Profile

DigitalOcean Holdings, Inc, through its subsidiaries, operates a cloud computing platform in North America, Europe, Asia, and internationally. The company’s platform provides on-demand infrastructure and platform tools for developers, start-ups, and small and growing digital businesses. It also offers infrastructure-as-a-service (IaaS) solutions comprising compute and storage services, as well as networking projects, including Cloud Firewalls software, Managed Load Balancers software, and Virtual Private Cloud (VPC).