DigitalOcean (NYSE:DOCN) Updates FY25 Earnings Guidance

DigitalOcean (NYSE:DOCN) issued an update on its FY25 earnings guidance on Friday morning. The company provided EPS guidance of $1.85-1.95 for the period, compared to the consensus EPS estimate of $1.91. The company issued revenue guidance of $870-890 million, compared to the consensus revenue estimate of $883.72 million. DigitalOcean also updated its Q1 guidance to $0.41-0.46 EPS.

DigitalOcean Stock Performance

Shares of DOCN stock opened at $28.64 on Friday. The stock’s 50 day simple moving average is $39.63 and its 200 day simple moving average is $39.03. DigitalOcean has a twelve month low of $26.63 and a twelve month high of $47.02. The company has a market capitalization of $2.64 billion, a price-to-earnings ratio of 33.69, a PEG ratio of 3.12 and a beta of 1.87.

Analyst Ratings Changes

A number of brokerages have recently weighed in on DOCN. Morgan Stanley upgraded shares of DigitalOcean from an “equal weight” rating to an “overweight” rating and boosted their price objective for the stock from $40.00 to $41.00 in a research note on Thursday, January 16th. Needham & Company LLC reissued a “hold” rating on shares of DigitalOcean in a research report on Wednesday, February 26th. UBS Group upped their price target on shares of DigitalOcean from $39.00 to $44.00 and gave the company a “neutral” rating in a report on Wednesday, February 26th. Citigroup started coverage on shares of DigitalOcean in a research note on Friday, January 24th. They issued a “buy” rating and a $45.00 price objective on the stock. Finally, JMP Securities upped their target price on shares of DigitalOcean from $47.00 to $55.00 and gave the company a “market outperform” rating in a research note on Monday, January 27th. One analyst has rated the stock with a sell rating, six have given a hold rating and six have given a buy rating to the stock. According to data from MarketBeat, DigitalOcean has a consensus rating of “Hold” and an average price target of $43.27.

Insider Activity at DigitalOcean

In other news, insider Bratin Saha sold 3,948 shares of DigitalOcean stock in a transaction that occurred on Tuesday, March 18th. The shares were sold at an average price of $36.63, for a total transaction of $144,615.24. Following the completion of the sale, the insider now owns 358,696 shares in the company, valued at $13,139,034.48. The trade was a 1.09 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 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).