DigitalOcean (NYSE:DOCN) Updates Q1 Earnings Guidance

DigitalOcean (NYSE:DOCN) updated its first quarter earnings guidance on Tuesday. The company provided earnings per share (EPS) guidance of $0.41-0.46 for the period, compared to the consensus estimate of $0.42. The company issued revenue guidance of $207-209 million, compared to the consensus revenue estimate of $207.72 million. DigitalOcean also updated its FY 2025 guidance to 1.850-1.950 EPS.

Wall Street Analyst Weigh In

A number of equities analysts have recently weighed in on DOCN shares. Morgan Stanley raised shares of DigitalOcean from an “equal weight” rating to an “overweight” rating and upped their price target for the stock from $40.00 to $41.00 in a research note on Thursday, January 16th. Bank of America boosted their price target on DigitalOcean from $28.00 to $31.00 and gave the stock an “underperform” rating in a report on Wednesday. Cantor Fitzgerald lifted their target price on shares of DigitalOcean from $39.00 to $43.00 and gave the stock a “neutral” rating in a research note on Wednesday. Needham & Company LLC restated a “hold” rating on shares of DigitalOcean in a report on Wednesday. Finally, JMP Securities raised their price objective on DigitalOcean from $47.00 to $55.00 and gave the stock a “market outperform” rating in a report on Monday, January 27th. One equities research analyst has rated the stock with a sell rating, six have issued a hold rating and five have assigned a buy rating to the company. According to data from MarketBeat.com, DigitalOcean has a consensus rating of “Hold” and an average target price of $41.73.

DigitalOcean Price Performance

Shares of NYSE DOCN traded up $1.24 during mid-day trading on Wednesday, hitting $42.07. The company had a trading volume of 185,180 shares, compared to its average volume of 1,260,621. The firm’s 50 day simple moving average is $38.70 and its two-hundred day simple moving average is $39.10. The stock has a market cap of $3.88 billion, a price-to-earnings ratio of 49.57, a PEG 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.

Insider Transactions at DigitalOcean

In other news, CFO Matt Steinfort sold 12,498 shares of the stock in a transaction on 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. This represents a 2.36 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Bratin Saha sold 4,289 shares of the company’s stock in a transaction on Tuesday, January 21st. The shares were sold at an average price of $36.80, for a total value 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 represents a 1.14 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 20,255 shares of company stock valued at $790,163 in the last quarter. Insiders own 0.74% of the company’s stock.

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).