DigitalOcean (NYSE:DOCN) Updates 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 FY25 guidance to $1.85-1.95 EPS.

DigitalOcean Trading Down 5.4 %

Shares of DigitalOcean stock opened at $37.18 on Tuesday. DigitalOcean has a 12-month low of $26.63 and a 12-month high of $47.02. The company has a market cap of $3.43 billion, a P/E ratio of 43.74, a PEG ratio of 3.12 and a beta of 1.81. The company’s fifty day simple moving average is $38.64 and its two-hundred day simple moving average is $39.05.

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

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on the stock. Citigroup started coverage on shares of DigitalOcean in a report on Friday, January 24th. They issued a “buy” rating and a $45.00 price objective on the stock. Morgan Stanley upgraded 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. Cantor Fitzgerald initiated coverage on DigitalOcean in a research report on Friday, January 17th. They set a “neutral” rating and a $39.00 price objective for the company. JMP Securities boosted their target price on DigitalOcean from $47.00 to $55.00 and gave the stock a “market outperform” rating in a report on Monday, January 27th. Finally, Needham & Company LLC restated a “hold” rating on shares of DigitalOcean in a report on Tuesday, November 5th. Six research analysts have rated the stock with a hold rating and five have assigned a buy rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus price target of $42.40.

Insider Activity

In related news, CFO Matt Steinfort sold 12,498 shares of the stock in a transaction that occurred 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 transaction, 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 ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Bratin Saha sold 3,468 shares of DigitalOcean stock in a transaction that occurred on Wednesday, December 18th. The stock was 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 directly owns 379,795 shares in the company, valued at approximately $14,500,573.10. The trade was a 0.90 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 20,255 shares of company stock valued at $790,163 over the last three months. 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).