DigitalOcean (NASDAQ:DOCN) Updates Q3 Earnings Guidance

DigitalOcean (NASDAQ:DOCN) updated its third quarter earnings guidance on Thursday. The company provided earnings per share guidance of $0.39-$0.41 for the period, compared to the consensus earnings per share estimate of $0.41. The company issued revenue guidance of $196-$197 million, compared to the consensus revenue estimate of $195.21 million. DigitalOcean also updated its FY 2024 guidance to 1.600-1.700 EPS.

DigitalOcean Stock Up 11.9 %

DOCN stock opened at $32.57 on Friday. DigitalOcean has a twelve month low of $19.39 and a twelve month high of $41.58. The firm has a market cap of $2.97 billion, a price-to-earnings ratio of 61.45, a PEG ratio of 3.01 and a beta of 1.81. The business’s fifty day simple moving average is $33.59 and its two-hundred day simple moving average is $35.63.

DigitalOcean (NASDAQ:DOCN) last announced its quarterly earnings results on Friday, May 10th. The company reported $0.24 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.18 by $0.06. The firm had revenue of $184.73 million during the quarter, compared to analyst estimates of $182.70 million. DigitalOcean had a negative return on equity of 26.29% and a net margin of 7.01%. Research analysts expect that DigitalOcean will post 0.78 EPS for the current year.

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on DOCN. Stifel Nicolaus raised their price objective on DigitalOcean from $32.00 to $35.00 and gave the company a hold rating in a research report on Friday. UBS Group cut their price objective on shares of DigitalOcean from $40.00 to $34.00 and set a neutral rating on the stock in a research report on Friday. Barclays decreased their target price on shares of DigitalOcean from $43.00 to $38.00 and set an overweight rating for the company in a research report on Friday. JMP Securities reaffirmed a market outperform rating and issued a $47.00 price target on shares of DigitalOcean in a report on Monday, May 13th. Finally, Canaccord Genuity Group raised their price objective on DigitalOcean from $41.00 to $42.00 and gave the stock a buy rating in a research report on Monday, May 13th. One analyst has rated the stock with a sell rating, five have issued a hold rating and five have assigned a buy rating to the company’s stock. According to data from MarketBeat.com, DigitalOcean has a consensus rating of Hold and an average target price of $36.40.

Insider Buying and Selling

In other news, Director Amy Butte sold 5,220 shares of DigitalOcean stock in a transaction that occurred on Friday, June 7th. The shares were sold at an average price of $37.46, for a total transaction of $195,541.20. Following the sale, the director now owns 36,417 shares of the company’s stock, valued at approximately $1,364,180.82. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. 0.74% of the stock is owned by company 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).