DigitalOcean (NYSE:DOCN - Get Free Report) updated its FY 2025 earnings guidance on Tuesday. The company provided earnings per share guidance of 2.050-2.100 for the period, compared to the consensus earnings per share estimate of 1.940. The company issued revenue guidance of $888.0 million-$892.0 million, compared to the consensus revenue estimate of $881.5 million. DigitalOcean also updated its Q3 2025 guidance to 0.450-0.500 EPS.
Wall Street Analyst Weigh In
A number of research firms have issued reports on DOCN. The Goldman Sachs Group cut their price target on DigitalOcean from $46.00 to $41.00 and set a "buy" rating on the stock in a report on Wednesday, May 7th. Needham & Company LLC reissued a "hold" rating on shares of DigitalOcean in a research report on Tuesday, May 6th. Citigroup reduced their price objective on DigitalOcean from $50.00 to $40.00 and set a "buy" rating for the company in a research note on Wednesday, May 7th. Stifel Nicolaus set a $36.00 price objective on DigitalOcean in a research note on Tuesday. Finally, Canaccord Genuity Group upped their price objective on DigitalOcean from $45.00 to $49.00 and gave the company a "buy" rating in a research note on Wednesday. One investment analyst has rated the stock with a sell rating, five have issued a hold rating and seven have assigned a buy rating to the company. According to MarketBeat, the company presently has an average rating of "Hold" and an average price target of $41.45.
View Our Latest Analysis on DigitalOcean
DigitalOcean Stock Down 4.7%
DOCN traded down $1.63 during trading hours on Friday, hitting $32.70. The stock had a trading volume of 1,228,187 shares, compared to its average volume of 1,569,272. The company's fifty day simple moving average is $28.87 and its 200 day simple moving average is $32.95. DigitalOcean has a 1 year low of $25.45 and a 1 year high of $47.02. The stock has a market cap of $2.98 billion, a PE ratio of 25.18, a price-to-earnings-growth ratio of 2.67 and a beta of 1.75.
DigitalOcean (NYSE:DOCN - Get Free Report) last announced its quarterly earnings data on Tuesday, August 5th. The company reported $0.59 earnings per share for the quarter, topping the consensus estimate of $0.47 by $0.12. DigitalOcean had a negative return on equity of 73.19% and a net margin of 15.18%. The company had revenue of $218.70 million during the quarter, compared to analyst estimates of $216.62 million. During the same quarter last year, the firm posted $0.48 EPS. The firm's revenue for the quarter was up 13.6% on a year-over-year basis. As a group, equities analysts expect that DigitalOcean will post 1.01 EPS for the current year.
Insider Buying and Selling
In other DigitalOcean news, insider Bratin Saha sold 3,461 shares of the firm's stock in a transaction dated Wednesday, June 18th. The stock was sold at an average price of $27.77, for a total value of $96,111.97. Following the completion of the transaction, the insider owned 294,546 shares in the company, valued at $8,179,542.42. This trade represents a 1.16% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. 0.96% of the stock is currently owned by corporate insiders.
Institutional Trading of DigitalOcean
An institutional investor recently raised its position in DigitalOcean stock. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in shares of DigitalOcean Holdings, Inc. (NYSE:DOCN - Free Report) by 5.0% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 339,670 shares of the company's stock after acquiring an additional 16,162 shares during the quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC owned about 0.37% of DigitalOcean worth $11,342,000 at the end of the most recent quarter. 49.77% of the stock is currently owned by hedge funds and other institutional investors.
DigitalOcean Company Profile
(
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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).
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