DigitalOcean (NYSE:DOCN) Releases 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.

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on DOCN. Bank of America upped their price target on shares of DigitalOcean from $28.00 to $31.00 and gave the stock an “underperform” rating in a research report on Wednesday. Cantor Fitzgerald boosted their price target on DigitalOcean from $39.00 to $43.00 and gave the stock a “neutral” rating in a research report on Wednesday. Stifel Nicolaus lifted their target price on DigitalOcean from $35.00 to $40.00 and gave the company a “hold” rating in a research note on Wednesday, December 18th. JPMorgan Chase & Co. increased their price target on shares of DigitalOcean from $40.00 to $45.00 and gave the company a “neutral” rating in a research report on Wednesday. Finally, Canaccord Genuity Group lifted their price objective on shares of DigitalOcean from $48.00 to $50.00 and gave the stock a “buy” rating in a research report on Wednesday. One investment analyst has rated the stock with a sell rating, six have given a hold rating and five have assigned a buy rating to the company. According to data from MarketBeat.com, DigitalOcean presently has an average rating of “Hold” and a consensus price target of $43.27.

DigitalOcean Stock Up 1.7 %

Shares of NYSE:DOCN traded up $0.76 during trading on Thursday, hitting $44.70. The stock had a trading volume of 1,372,553 shares, compared to its average volume of 1,322,927. DigitalOcean has a 12-month low of $26.63 and a 12-month high of $47.02. The stock has a market capitalization of $4.12 billion, a price-to-earnings ratio of 52.75, a price-to-earnings-growth ratio of 3.12 and a beta of 1.81. The stock has a 50-day simple moving average of $38.88 and a two-hundred day simple moving average of $39.14.

Insiders Place Their Bets

In other news, CFO Matt Steinfort sold 12,498 shares of the firm’s stock in a transaction that occurred on Wednesday, December 4th. The shares were sold at an average price of $40.00, for a total transaction of $499,920.00. Following the sale, the chief financial officer now owns 517,498 shares of the company’s stock, valued at $20,699,920. This trade represents a 2.36 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Bratin Saha sold 4,289 shares of the business’s 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 completion of the transaction, the insider now owns 372,762 shares of the company’s stock, valued at approximately $13,717,641.60. This represents a 1.14 % decrease in their ownership of the stock. 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. 0.74% of the stock is owned by 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).