DigitalOcean (NYSE:DOCN) Releases FY 2025 Earnings Guidance

DigitalOcean (NYSE:DOCN) updated its FY 2025 earnings guidance on Wednesday. The company provided earnings per share (EPS) guidance of 1.850-1.950 for the period, compared to the consensus estimate of 1.910. The company issued revenue guidance of $870.0 million-$890.0 million, compared to the consensus revenue estimate of $883.8 million. DigitalOcean also updated its Q1 2025 guidance to 0.410-0.460 EPS.

DigitalOcean Price Performance

Shares of DOCN opened at $28.12 on Wednesday. DigitalOcean has a 1 year low of $25.45 and a 1 year high of $47.02. The company has a 50 day simple moving average of $37.19 and a two-hundred day simple moving average of $38.19. The firm has a market cap of $2.59 billion, a P/E ratio of 33.08, a price-to-earnings-growth ratio of 3.12 and a beta of 1.87.

Analyst Ratings Changes

Several analysts have commented on DOCN shares. Stifel Nicolaus decreased their price target on shares of DigitalOcean from $40.00 to $33.00 and set a “hold” rating on the stock in a research note on Monday, April 7th. UBS Group increased their price target on DigitalOcean from $39.00 to $44.00 and gave the company a “neutral” rating in a research note on Wednesday, February 26th. Bank of America lifted their price objective on DigitalOcean from $28.00 to $31.00 and gave the stock an “underperform” rating in a research note on Wednesday, February 26th. Needham & Company LLC reissued a “hold” rating on shares of DigitalOcean in a report on Monday, April 7th. Finally, JMP Securities upped their price target 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 issued a hold rating and six have issued a buy rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $42.18.

Insider Activity at DigitalOcean

In related news, insider Bratin Saha sold 3,948 shares of the company’s stock in a transaction dated Tuesday, March 18th. The shares were sold at an average price of $36.63, for a total value of $144,615.24. Following the completion of the sale, the insider now directly owns 358,696 shares of the company’s stock, valued at $13,139,034.48. This represents a 1.09 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 0.74% of the stock is currently owned by company 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).