DigitalOcean (NASDAQ:DOCN – Get Rating) issued an update on its fourth quarter earnings guidance on Monday morning. The company provided EPS guidance of $0.18-$0.19 for the period, compared to the consensus EPS estimate of $0.27. The company issued revenue guidance of $160-$162 million, compared to the consensus revenue estimate of $167.96 million. DigitalOcean also updated its FY 2022 guidance to $0.79-$0.80 EPS.
DigitalOcean Stock Performance
DigitalOcean stock traded down $1.12 during midday trading on Monday, hitting $29.40. 3,442,963 shares of the company’s stock were exchanged, compared to its average volume of 1,999,501. DigitalOcean has a 12-month low of $28.23 and a 12-month high of $133.40. The company has a debt-to-equity ratio of 30.38, a quick ratio of 16.59 and a current ratio of 16.59. The stock has a market cap of $2.85 billion, a price-to-earnings ratio of -81.66 and a beta of 1.26. The firm’s 50 day simple moving average is $37.97 and its 200 day simple moving average is $40.99.
DigitalOcean (NASDAQ:DOCN – Get Rating) last issued its quarterly earnings data on Monday, August 8th. The company reported ($0.04) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.05) by $0.01. DigitalOcean had a negative net margin of 7.78% and a negative return on equity of 7.59%. The company had revenue of $133.88 million for the quarter, compared to the consensus estimate of $134.48 million. During the same period last year, the firm posted ($0.02) EPS. DigitalOcean’s revenue for the quarter was up 29.0% on a year-over-year basis. Equities research analysts predict that DigitalOcean will post -0.15 EPS for the current year.
Analysts Set New Price Targets
Several analysts have recently commented on DOCN shares. KeyCorp reduced their target price on shares of DigitalOcean from $57.00 to $47.00 and set an overweight rating for the company in a research note on Monday, October 24th. Piper Sandler raised their target price on shares of DigitalOcean from $56.00 to $57.00 and gave the stock an overweight rating in a research note on Tuesday, August 9th. Morgan Stanley reduced their target price on shares of DigitalOcean from $45.00 to $41.00 and set an underweight rating for the company in a research note on Thursday, October 20th. Barclays reduced their target price on shares of DigitalOcean from $55.00 to $45.00 and set an overweight rating for the company in a research note on Tuesday, October 18th. Finally, Oppenheimer reduced their target price on shares of DigitalOcean from $80.00 to $65.00 in a research note on Tuesday, August 9th. Two equities research analysts have rated the stock with a sell rating and five have assigned a buy rating to the company. According to data from MarketBeat, the company has a consensus rating of Hold and a consensus target price of $54.20.
Insider Activity at DigitalOcean
In other DigitalOcean news, CMO Carly D. Brantz sold 1,774 shares of DigitalOcean stock in a transaction dated Wednesday, August 17th. The shares were sold at an average price of $45.97, for a total transaction of $81,550.78. Following the completion of the transaction, the chief marketing officer now owns 100,897 shares in the company, valued at $4,638,235.09. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. In other DigitalOcean news, Director Amy Butte sold 5,000 shares of DigitalOcean stock in a transaction dated Wednesday, August 10th. The shares were sold at an average price of $50.00, for a total transaction of $250,000.00. Following the completion of the transaction, the director now owns 34,760 shares in the company, valued at $1,738,000. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CMO Carly D. Brantz sold 1,774 shares of DigitalOcean stock in a transaction dated Wednesday, August 17th. The stock was sold at an average price of $45.97, for a total transaction of $81,550.78. Following the transaction, the chief marketing officer now owns 100,897 shares of the company’s stock, valued at approximately $4,638,235.09. The disclosure for this sale can be found here. Insiders sold 10,269 shares of company stock worth $471,700 over the last 90 days. Company insiders own 4.10% of the company’s stock.
Hedge Funds Weigh In On DigitalOcean
Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. BlackRock Inc. grew its holdings in shares of DigitalOcean by 6.2% during the first quarter. BlackRock Inc. now owns 4,113,371 shares of the company’s stock worth $237,960,000 after buying an additional 241,316 shares in the last quarter. First Trust Advisors LP grew its holdings in shares of DigitalOcean by 29.4% during the first quarter. First Trust Advisors LP now owns 3,241,162 shares of the company’s stock worth $187,501,000 after buying an additional 735,924 shares in the last quarter. State Street Corp grew its holdings in shares of DigitalOcean by 40.3% during the second quarter. State Street Corp now owns 1,227,221 shares of the company’s stock worth $50,758,000 after buying an additional 352,508 shares in the last quarter. Northern Trust Corp grew its holdings in shares of DigitalOcean by 40.5% during the second quarter. Northern Trust Corp now owns 782,222 shares of the company’s stock worth $32,353,000 after buying an additional 225,560 shares in the last quarter. Finally, Invesco Ltd. grew its holdings in shares of DigitalOcean by 44.3% during the first quarter. Invesco Ltd. now owns 686,059 shares of the company’s stock worth $39,689,000 after buying an additional 210,636 shares in the last quarter. Institutional investors and hedge funds own 52.00% 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. Its platform provides on-demand infrastructure and platform tools for developers, start-ups, and small and medium size businesses. The company offers infrastructure solutions across compute, storage, and networking, as well as enables developers to extend the native capabilities of its cloud with fully managed application, container, and database offerings.