DigitalOcean (NYSE:DOCN) Updates FY 2025 Earnings Guidance

DigitalOcean (NYSE:DOCN) updated its FY 2025 earnings guidance on Tuesday. The company provided earnings per share (EPS) guidance of 1.850-1.950 for the period, compared to the consensus estimate of 1.840. The company issued revenue guidance of $870.0 million-$890.0 million, compared to the consensus revenue estimate of $877.7 million. DigitalOcean also updated its FY25 guidance to $1.85-1.95 EPS.

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on the stock. JMP Securities boosted their price target 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. Morgan Stanley upgraded shares of DigitalOcean from an “equal weight” rating to an “overweight” rating and upped their target price for the company from $40.00 to $41.00 in a research report on Thursday, January 16th. Needham & Company LLC restated a “hold” rating on shares of DigitalOcean in a research report on Tuesday, November 5th. Cantor Fitzgerald initiated coverage on DigitalOcean in a report on Friday, January 17th. They issued a “neutral” rating and a $39.00 price objective for the company. Finally, Citigroup initiated coverage on DigitalOcean in a report on Friday, January 24th. They set a “buy” rating and a $45.00 target price on the stock. Six analysts have rated the stock with a hold rating and five have assigned a buy rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $42.40.

DigitalOcean Trading Up 14.7 %

Shares of NYSE DOCN traded up $5.45 during midday trading on Tuesday, reaching $42.62. The company’s stock had a trading volume of 977,750 shares, compared to its average volume of 1,199,800. The stock has a 50 day simple moving average of $38.64 and a 200-day simple moving average of $39.05. The stock has a market capitalization of $3.93 billion, a price-to-earnings ratio of 49.53, a PEG ratio of 3.12 and a beta of 1.81. DigitalOcean has a fifty-two week low of $26.63 and a fifty-two week high of $47.02.

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. DigitalOcean had a net margin of 10.86% and a negative return on equity of 43.11%. The firm had revenue of $204.90 million for the quarter, compared to analysts’ expectations of $200.54 million. During the same period in the previous year, the firm posted $0.44 EPS. The company’s revenue for the quarter was up 13.3% on a year-over-year basis. As a group, equities analysts anticipate that DigitalOcean will post 1.01 EPS for the current year.

Insiders Place Their Bets

In other news, CFO Matt Steinfort sold 12,498 shares of the company’s stock in a transaction dated Wednesday, December 4th. The shares were sold at an average price of $40.00, for a total value of $499,920.00. Following the sale, the chief financial officer now directly owns 517,498 shares of the company’s stock, valued at approximately $20,699,920. This represents 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 the SEC website. Also, insider Bratin Saha sold 3,468 shares of DigitalOcean stock in a transaction dated Wednesday, December 18th. The stock was sold at an average price of $38.18, for a total value of $132,408.24. Following the transaction, the insider now owns 379,795 shares of the company’s stock, valued at $14,500,573.10. The trade was a 0.90 % decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 20,255 shares of company stock valued at $790,163. 0.74% of the stock is currently owned by corporate 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).