DigitalOcean (NYSE:DOCN) Releases Q1 Earnings Guidance

DigitalOcean (NYSE:DOCN - Get Free Report) issued an update on its first quarter earnings guidance on Friday morning. The company provided earnings per share (EPS) guidance of $0.41-0.46 for the period, compared to the consensus estimate of $0.44. The company issued revenue guidance of $207-209 million, compared to the consensus revenue estimate of $208.63 million. DigitalOcean also updated its FY25 guidance to $1.85-1.95 EPS.

Wall Street Analyst Weigh In

Several analysts have weighed in on DOCN shares. Citigroup began coverage on shares of DigitalOcean in a research note on Friday, January 24th. They set a "buy" rating and a $45.00 target price for the company. Needham & Company LLC reaffirmed a "hold" rating on shares of DigitalOcean in a report on Monday. Stifel Nicolaus lowered their price target on DigitalOcean from $40.00 to $33.00 and set a "hold" rating on the stock in a research report on Monday. Morgan Stanley upgraded shares of DigitalOcean from an "equal weight" rating to an "overweight" rating and boosted their target price for the stock from $40.00 to $41.00 in a report on Thursday, January 16th. Finally, The Goldman Sachs Group reiterated a "buy" rating on shares of DigitalOcean in a research report on Saturday, March 1st. One analyst has rated the stock with a sell rating, six have assigned a hold rating and six have issued a buy rating to the stock. According to MarketBeat, the company has an average rating of "Hold" and an average target price of $42.18.

DigitalOcean Price Performance

Shares of DOCN stock traded up $5.16 on Wednesday, hitting $31.07. The company's stock had a trading volume of 3,471,614 shares, compared to its average volume of 1,284,094. The stock has a market capitalization of $2.86 billion, a price-to-earnings ratio of 36.55, a P/E/G ratio of 3.12 and a beta of 1.87. DigitalOcean has a fifty-two week low of $25.15 and a fifty-two week high of $47.02. The firm's fifty day moving average price is $38.32 and its 200-day moving average price is $38.56.

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Insider Activity

In other news, insider Bratin Saha sold 3,948 shares of DigitalOcean stock in a transaction dated Tuesday, March 18th. The stock was sold at an average price of $36.63, for a total value of $144,615.24. Following the transaction, the insider now directly owns 358,696 shares in the company, valued at approximately $13,139,034.48. The trade was a 1.09 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 0.74% of the stock is currently 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).