DigitalOcean (NYSE:DOCN) Releases FY25 Earnings Guidance

DigitalOcean (NYSE:DOCN) updated its FY25 earnings guidance on Tuesday. The company provided earnings per share guidance of $1.85-1.95 for the period, compared to the consensus earnings per share estimate of $1.84. The company issued revenue guidance of $870-890 million, compared to the consensus revenue estimate of $877.68 million. DigitalOcean also updated its FY 2025 guidance to 1.850-1.950 EPS.

Wall Street Analyst Weigh In

Several research analysts have weighed in on DOCN shares. Needham & Company LLC reissued a “hold” rating on shares of DigitalOcean in a research report on Wednesday. Bank of America increased their price target on shares of DigitalOcean from $28.00 to $31.00 and gave the company an “underperform” rating in a research report on Wednesday. Morgan Stanley raised shares of DigitalOcean from an “equal weight” rating to an “overweight” rating and lifted their price objective for the stock from $40.00 to $41.00 in a research report on Thursday, January 16th. JMP Securities raised 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. Finally, Stifel Nicolaus upped their price objective on DigitalOcean from $35.00 to $40.00 and gave the company a “hold” rating in a research note on Wednesday, December 18th. 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’s stock. According to data from MarketBeat, DigitalOcean currently has an average rating of “Hold” and a consensus price target of $41.73.

DigitalOcean Stock Performance

DOCN stock traded up $1.24 during midday trading on Wednesday, reaching $42.07. 185,180 shares of the company’s stock traded hands, compared to its average volume of 1,260,621. DigitalOcean has a 52 week low of $26.63 and a 52 week high of $47.02. The company has a 50-day moving average price of $38.70 and a two-hundred day moving average price of $39.10. The firm has a market capitalization of $3.88 billion, a PE ratio of 49.57, a price-to-earnings-growth ratio of 3.12 and a beta of 1.81.

Insider Activity at DigitalOcean

In other news, CFO Matt Steinfort sold 12,498 shares of the company’s stock in a transaction dated Wednesday, December 4th. The stock was sold at an average price of $40.00, for a total transaction of $499,920.00. Following 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 sale was disclosed in a filing with the SEC, which is available at this link. Also, insider Bratin Saha sold 4,289 shares of the firm’s stock in a transaction that occurred on Tuesday, January 21st. The shares were sold at an average price of $36.80, for a total transaction of $157,835.20. Following the completion of 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 disclosure for this sale can be found here. In the last three months, insiders have sold 20,255 shares of company stock worth $790,163. 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).