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 (EPS) guidance of $0.41-0.46 for the period, compared to the consensus 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.

DigitalOcean Price Performance

Shares of NYSE:DOCN traded up $3.88 during midday trading on Tuesday, reaching $41.05. The company had a trading volume of 2,151,265 shares, compared to its average volume of 1,232,193. The stock has a market capitalization of $3.79 billion, a P/E ratio of 48.37, a PEG ratio of 3.12 and a beta of 1.81. The stock’s fifty day moving average price is $38.64 and its 200-day moving average price is $39.05. DigitalOcean has a one year low of $26.63 and a one year high of $47.02.

DigitalOcean (NYSE:DOCN) last released its earnings results on Tuesday, February 25th. The company reported $0.49 earnings per share for the quarter, topping the consensus estimate of $0.35 by $0.14. DigitalOcean had a net margin of 10.86% and a negative return on equity of 43.11%. The company had revenue of $204.90 million during the quarter, compared to the consensus estimate of $200.54 million. During the same quarter in the previous year, the firm earned $0.44 EPS. The company’s revenue was up 13.3% on a year-over-year basis. As a group, sell-side analysts forecast that DigitalOcean will post 1.01 earnings per share for the current year.

Analysts Set New Price Targets

A number of research firms have commented on DOCN. JMP Securities increased 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. Citigroup began coverage on shares of DigitalOcean in a report on Friday, January 24th. They issued a “buy” rating and a $45.00 price objective for the company. Stifel Nicolaus increased their target price on shares of DigitalOcean from $35.00 to $40.00 and gave the stock a “hold” rating in a report on Wednesday, December 18th. Cantor Fitzgerald started coverage on shares of DigitalOcean in a research report on Friday, January 17th. They issued a “neutral” rating and a $39.00 price target on the stock. Finally, Needham & Company LLC reaffirmed a “hold” rating on shares of DigitalOcean in a research report on Tuesday, November 5th. Six research analysts have rated the stock with a hold rating and five have issued a buy rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $42.40.

Insider Buying and Selling at DigitalOcean

In related news, insider Bratin Saha sold 4,289 shares of the 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 completion of the transaction, the insider now owns 372,762 shares in the company, valued at $13,717,641.60. This represents a 1.14 % decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CFO Matt Steinfort sold 12,498 shares of the firm’s stock in a transaction dated Wednesday, December 4th. The shares were 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 position. The disclosure for this sale can be found here. Insiders sold 20,255 shares of company stock valued at $790,163 in the last ninety days. Company 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).