DigitalOcean (NYSE:DOCN) Issues Q1 Earnings Guidance

DigitalOcean (NYSE:DOCN) issued an update on its first quarter earnings guidance on Tuesday morning. The company provided earnings per share guidance of $0.41-0.46 for the period, compared to the consensus earnings per share 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.

Analysts Set New Price Targets

A number of equities research analysts have recently commented on DOCN shares. Needham & Company LLC reiterated a “hold” rating on shares of DigitalOcean in a report on Tuesday, November 5th. Citigroup began coverage on shares of DigitalOcean in a research note on Friday, January 24th. They issued a “buy” rating and a $45.00 target price for the company. Stifel Nicolaus increased their price target on DigitalOcean from $35.00 to $40.00 and gave the stock a “hold” rating in a research note on Wednesday, December 18th. JMP Securities lifted their price objective on DigitalOcean from $47.00 to $55.00 and gave the company a “market outperform” rating in a research report on Monday, January 27th. Finally, Cantor Fitzgerald initiated coverage on DigitalOcean in a research report on Friday, January 17th. They set a “neutral” rating and a $39.00 target price on the stock. Six equities research analysts have rated the stock with a hold rating and five have given a buy rating to the stock. Based on data from MarketBeat.com, DigitalOcean currently has a consensus rating of “Hold” and a consensus target price of $42.40.

DigitalOcean Stock Performance

Shares of NYSE:DOCN traded up $3.88 during trading on Tuesday, reaching $41.05. 2,151,265 shares of the stock were exchanged, compared to its average volume of 1,232,193. The firm’s 50-day moving average price is $38.64 and its 200 day moving average price is $39.05. The firm has a market cap of $3.79 billion, a price-to-earnings ratio of 48.37, a price-to-earnings-growth 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.

DigitalOcean (NYSE:DOCN) last released its quarterly earnings data on Tuesday, February 25th. The company reported $0.49 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.35 by $0.14. The company 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%. The business’s quarterly revenue was up 13.3% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.44 earnings per share. As a group, equities research analysts forecast that DigitalOcean will post 1.01 EPS for the current year.

Insider Buying and Selling at DigitalOcean

In other DigitalOcean news, insider Bratin Saha sold 3,468 shares of the stock in a transaction that occurred on Wednesday, December 18th. The shares were sold at an average price of $38.18, for a total value of $132,408.24. Following the completion of the sale, the insider now owns 379,795 shares of the company’s stock, valued at $14,500,573.10. This trade represents a 0.90 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Matt Steinfort sold 12,498 shares of the business’s 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 transaction, the chief financial officer now directly owns 517,498 shares in the company, valued at approximately $20,699,920. The trade was a 2.36 % 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 over the last three months. 0.74% of the stock is 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).