DigitalOcean (NYSE:DOCN) Releases FY25 Earnings Guidance

DigitalOcean (NYSE:DOCN) updated its FY25 earnings guidance on Tuesday. The company provided earnings per share (EPS) guidance of $1.85-1.95 for the period, compared to the consensus 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.

DigitalOcean Price Performance

DigitalOcean stock traded up $1.24 during mid-day trading on Wednesday, reaching $42.07. 185,180 shares of the company were exchanged, compared to its average volume of 1,260,621. The company has a fifty day simple moving average of $38.70 and a 200-day simple moving average of $39.10. The firm has a market cap of $3.88 billion, a PE ratio of 49.57, a PEG ratio of 3.12 and a beta of 1.81. DigitalOcean has a 12 month low of $26.63 and a 12 month high of $47.02.

Analyst Ratings Changes

Several equities research analysts recently weighed in on the stock. Citigroup assumed coverage on shares of DigitalOcean in a research report on Friday, January 24th. They set a “buy” rating and a $45.00 price objective for the company. Morgan Stanley raised 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 research note on Thursday, January 16th. JMP Securities upped their target price on DigitalOcean from $47.00 to $55.00 and gave the stock a “market outperform” rating in a research note on Monday, January 27th. Cantor Fitzgerald raised their target price on DigitalOcean from $39.00 to $43.00 and gave the company a “neutral” rating in a report on Wednesday. Finally, Stifel Nicolaus boosted their price target on DigitalOcean from $35.00 to $40.00 and gave the stock a “hold” rating in a report on Wednesday, December 18th. One equities research analyst has rated the stock with a sell rating, six have assigned a hold rating and five have assigned a buy rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Hold” and an average target price of $41.73.

Insider Transactions at DigitalOcean

In other news, insider Bratin Saha sold 4,289 shares of DigitalOcean stock in a transaction dated 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 directly owns 372,762 shares in the company, 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 filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, 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 completion of the sale, the chief financial officer now owns 517,498 shares in the company, valued at $20,699,920. This represents a 2.36 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 20,255 shares of company stock worth $790,163 over the last ninety days. 0.74% of the stock is owned by insiders.

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).