DigitalOcean (NYSE:DOCN) Issues FY 2025 Earnings Guidance

DigitalOcean (NYSE:DOCN) updated its FY 2025 earnings guidance on Tuesday. The company provided earnings per share guidance of 1.850-1.950 for the period, compared to the consensus earnings per share 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.

DigitalOcean Trading Down 1.7 %

NYSE DOCN traded down $0.73 on Thursday, hitting $43.21. 1,791,755 shares of the company were exchanged, compared to its average volume of 1,333,421. The stock has a fifty day moving average of $38.88 and a 200-day moving average of $39.14. The company has a market cap of $3.99 billion, a PE ratio of 51.00, 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.

Analysts Set New Price Targets

Several equities research analysts recently issued reports on DOCN shares. JPMorgan Chase & Co. upped their price target on DigitalOcean from $40.00 to $45.00 and gave the stock a “neutral” rating in a report on Wednesday. Canaccord Genuity Group raised their target price on DigitalOcean from $48.00 to $50.00 and gave the stock a “buy” rating in a research note on Wednesday. Morgan Stanley upgraded DigitalOcean from an “equal weight” rating to an “overweight” rating and lifted their price target for the company from $40.00 to $41.00 in a research report on Thursday, January 16th. Needham & Company LLC reiterated a “hold” rating on shares of DigitalOcean in a research report on Wednesday. Finally, Citigroup started coverage on shares of DigitalOcean in a research note on Friday, January 24th. They set a “buy” rating and a $45.00 price target on the stock. One investment analyst has rated the stock with a sell rating, six have issued a hold rating and five have issued a buy rating to the company. According to data from MarketBeat, the company has an average rating of “Hold” and a consensus target price of $43.27.

Insider Activity at DigitalOcean

In other DigitalOcean news, insider Bratin Saha sold 3,468 shares of the firm’s stock in a transaction that occurred on Wednesday, December 18th. The shares were sold at an average price of $38.18, for a total transaction of $132,408.24. Following the completion of the transaction, the insider now owns 379,795 shares of the company’s stock, valued at approximately $14,500,573.10. This trade represents a 0.90 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Matt Steinfort sold 12,498 shares of DigitalOcean 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 transaction, the chief financial officer now directly owns 517,498 shares of the company’s stock, valued at $20,699,920. This trade 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 worth $790,163 in the last three months. 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).