DigitalOcean (NYSE:DOCN) Issues Q1 Earnings Guidance

DigitalOcean (NYSE:DOCN) issued an update on its first quarter earnings guidance on Tuesday morning. The company provided EPS guidance of $0.41-0.46 for the period, compared to the consensus EPS 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.

Analyst Ratings Changes

A number of research firms have recently commented on DOCN. Morgan Stanley raised shares of DigitalOcean from an “equal weight” rating to an “overweight” rating and boosted their price target for the stock from $40.00 to $41.00 in a report on Thursday, January 16th. Stifel Nicolaus lifted their price objective on shares of DigitalOcean from $35.00 to $40.00 and gave the stock a “hold” rating in a research report on Wednesday, December 18th. JMP Securities increased their target price on shares of DigitalOcean from $47.00 to $55.00 and gave the company a “market outperform” rating in a research report on Monday, January 27th. Needham & Company LLC reaffirmed a “hold” rating on shares of DigitalOcean in a report on Tuesday, November 5th. Finally, Cantor Fitzgerald started coverage on DigitalOcean in a research note on Friday, January 17th. They issued a “neutral” rating and a $39.00 price objective on the stock. Six research analysts have rated the stock with a hold rating and five have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $42.40.

DigitalOcean Stock Down 5.4 %

Shares of DOCN opened at $37.18 on Tuesday. The business’s 50-day moving average price is $38.64 and its 200-day moving average price is $39.05. DigitalOcean has a twelve month low of $26.63 and a twelve month high of $47.02. The stock has a market cap of $3.43 billion, a PE ratio of 43.74, a P/E/G ratio of 3.12 and a beta of 1.81.

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

Insider Transactions at DigitalOcean

In other news, CFO Matt Steinfort sold 12,498 shares of the company’s stock in a transaction on Wednesday, December 4th. The shares were 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 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 is accessible through this link. Also, insider Bratin Saha sold 4,289 shares of the stock in a transaction 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 transaction, the insider now directly owns 372,762 shares in the company, valued at approximately $13,717,641.60. This represents a 1.14 % decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 20,255 shares of company stock valued at $790,163. 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).