DigitalOcean (NYSE:DOCN) Issues FY 2025 Earnings Guidance

DigitalOcean (NYSE:DOCN) issued an update on its FY 2025 earnings guidance on Wednesday morning. The company provided EPS guidance of 2.000-2.050 for the period, compared to the consensus EPS estimate of 1.800. The company issued revenue guidance of $896.0 million-$897.0 million, compared to the consensus revenue estimate of $890.4 million. DigitalOcean also updated its Q4 2025 guidance to 0.350-0.400 EPS.

DigitalOcean Stock Performance

Shares of NYSE:DOCN traded up $7.54 during trading hours on Wednesday, hitting $46.36. The stock had a trading volume of 7,506,811 shares, compared to its average volume of 1,996,053. The stock’s fifty day simple moving average is $37.15 and its 200 day simple moving average is $32.16. DigitalOcean has a 1-year low of $25.45 and a 1-year high of $47.02. The firm has a market capitalization of $4.22 billion, a price-to-earnings ratio of 35.64, a PEG ratio of 2.35 and a beta of 1.78.

DigitalOcean (NYSE:DOCN) last announced its quarterly earnings results on Tuesday, August 5th. The company reported $0.59 EPS for the quarter, beating the consensus estimate of $0.47 by $0.12. DigitalOcean had a net margin of 15.18% and a negative return on equity of 73.19%. The company had revenue of $218.70 million for the quarter, compared to analyst estimates of $216.62 million. During the same quarter last year, the business earned $0.48 earnings per share. DigitalOcean’s revenue was up 13.6% compared to the same quarter last year. As a group, research analysts anticipate that DigitalOcean will post 1.01 EPS for the current year.

Wall Street Analysts Forecast Growth

DOCN has been the topic of several analyst reports. UBS Group initiated coverage on shares of DigitalOcean in a research note on Tuesday, October 7th. They issued a “neutral” rating and a $40.00 price target on the stock. Barclays raised their price objective on shares of DigitalOcean from $38.00 to $40.00 and gave the company an “overweight” rating in a research note on Wednesday, August 6th. Weiss Ratings reiterated a “hold (c)” rating on shares of DigitalOcean in a research note on Wednesday, October 8th. Morgan Stanley raised their price objective on shares of DigitalOcean from $41.00 to $44.00 and gave the company an “overweight” rating in a research note on Wednesday, August 6th. Finally, Stifel Nicolaus set a $36.00 price objective on shares of DigitalOcean in a research note on Tuesday, August 5th. Six research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, DigitalOcean presently has an average rating of “Hold” and a consensus target price of $42.73.

Insider Buying and Selling

In other DigitalOcean news, insider Bratin Saha sold 13,010 shares of the stock in a transaction that occurred on Wednesday, September 3rd. The shares were sold at an average price of $31.87, for a total value of $414,628.70. Following the completion of the sale, the insider owned 269,465 shares in the company, valued at $8,587,849.55. This represents a 4.61% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Corporate insiders own 0.74% of the company’s stock.

Institutional Investors Weigh In On DigitalOcean

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in DOCN. Public Sector Pension Investment Board lifted its stake in shares of DigitalOcean by 6.0% in the second quarter. Public Sector Pension Investment Board now owns 214,160 shares of the company’s stock valued at $6,116,000 after buying an additional 12,205 shares during the period. BI Asset Management Fondsmaeglerselskab A S lifted its stake in shares of DigitalOcean by 7,047.4% in the second quarter. BI Asset Management Fondsmaeglerselskab A S now owns 198,841 shares of the company’s stock valued at $5,679,000 after buying an additional 196,059 shares during the period. Engineers Gate Manager LP lifted its stake in shares of DigitalOcean by 263.3% in the second quarter. Engineers Gate Manager LP now owns 127,592 shares of the company’s stock valued at $3,644,000 after buying an additional 92,470 shares during the period. Jump Financial LLC bought a new stake in shares of DigitalOcean in the second quarter valued at about $3,212,000. Finally, Man Group plc boosted its position in shares of DigitalOcean by 0.5% during the 2nd quarter. Man Group plc now owns 82,485 shares of the company’s stock valued at $2,356,000 after acquiring an additional 420 shares in the last quarter. Hedge funds and other institutional investors own 49.77% 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).