DigitalOcean (NYSE:DOCN) Releases 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.

Analysts Set New Price Targets

Several equities analysts have issued reports on DOCN shares. Canaccord Genuity Group lifted their target price on DigitalOcean from $48.00 to $50.00 and gave the company a “buy” rating in a research note on Wednesday. Morgan Stanley upgraded shares of DigitalOcean from an “equal weight” rating to an “overweight” rating and lifted their price objective for the company from $40.00 to $41.00 in a report on Thursday, January 16th. Bank of America boosted their target price on DigitalOcean from $28.00 to $31.00 and gave the company an “underperform” rating in a report on Wednesday. Stifel Nicolaus raised their target price on shares of DigitalOcean from $35.00 to $40.00 and gave the stock a “hold” rating in a research note on Wednesday, December 18th. Finally, JPMorgan Chase & Co. boosted their target price on DigitalOcean from $40.00 to $45.00 and gave the stock a “neutral” rating in a research report on Wednesday. One analyst has rated the stock with a sell rating, six have given a hold rating and five have issued a buy rating to the company’s stock. According to data from MarketBeat.com, DigitalOcean currently has a consensus rating of “Hold” and a consensus target price of $43.27.

DigitalOcean Stock Performance

Shares of NYSE:DOCN traded down $0.73 during trading on Thursday, reaching $43.21. 1,791,755 shares of the stock were exchanged, compared to its average volume of 1,333,421. DigitalOcean has a 12-month low of $26.63 and a 12-month high of $47.02. The firm’s 50-day moving average price is $38.88 and its 200 day moving average price is $39.14. The firm has a market cap of $3.99 billion, a price-to-earnings ratio of 51.00, a price-to-earnings-growth ratio of 3.12 and a beta of 1.81.

Insider Transactions at DigitalOcean

In other DigitalOcean news, insider Bratin Saha sold 4,289 shares of the firm’s stock in a transaction dated Tuesday, January 21st. The shares were sold at an average price of $36.80, for a total value of $157,835.20. Following the transaction, the insider now owns 372,762 shares of the company’s stock, valued at $13,717,641.60. This trade represents a 1.14 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, 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 value of $499,920.00. Following the completion of the sale, the chief financial officer now directly owns 517,498 shares in the company, valued at $20,699,920. This represents a 2.36 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 20,255 shares of company stock valued at $790,163 over the last 90 days. Corporate insiders own 0.74% of the company’s stock.

About DigitalOcean

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).