Brokers Offer Predictions for DigitalOcean Q1 Earnings

DigitalOcean Holdings, Inc. (NYSE:DOCN) – Stock analysts at William Blair issued their Q1 2025 EPS estimates for DigitalOcean in a report released on Tuesday, February 25th. William Blair analyst J. Ader expects that the company will post earnings per share of $0.19 for the quarter. The consensus estimate for DigitalOcean’s current full-year earnings is $1.01 per share. William Blair also issued estimates for DigitalOcean’s Q2 2025 earnings at $0.21 EPS, Q3 2025 earnings at $0.22 EPS, Q4 2025 earnings at $0.22 EPS and FY2026 earnings at $1.13 EPS.

Several other equities analysts have also recently commented on DOCN. Canaccord Genuity Group boosted their price objective on shares of DigitalOcean from $48.00 to $50.00 and gave the company a “buy” rating in a research note on Wednesday. Stifel Nicolaus boosted their price objective on shares of DigitalOcean from $35.00 to $40.00 and gave the company a “hold” rating in a research note on Wednesday, December 18th. Morgan Stanley raised shares of DigitalOcean from an “equal weight” rating to an “overweight” rating and boosted their price objective for the company from $40.00 to $41.00 in a research note on Thursday, January 16th. Bank of America boosted their price objective on shares of DigitalOcean from $28.00 to $31.00 and gave the company an “underperform” rating in a research note on Wednesday. Finally, Needham & Company LLC reaffirmed a “hold” rating on shares of DigitalOcean in a research note on Wednesday. One investment analyst has rated the stock with a sell rating, six have issued a hold rating and five have given a buy rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $43.27.

DigitalOcean Stock Up 0.1 %

DOCN opened at $42.74 on Friday. The company has a market capitalization of $3.94 billion, a price-to-earnings ratio of 50.29, a PEG ratio of 3.12 and a beta of 1.81. The firm has a 50-day moving average price of $39.17 and a 200-day moving average price of $39.25. DigitalOcean has a twelve month low of $26.63 and a twelve month high of $47.02.

Institutional Investors Weigh In On DigitalOcean

A number of hedge funds have recently made changes to their positions in DOCN. Norges Bank bought a new stake in shares of DigitalOcean in the 4th quarter worth approximately $14,772,000. Jacobs Levy Equity Management Inc. raised its holdings in DigitalOcean by 32.8% during the 3rd quarter. Jacobs Levy Equity Management Inc. now owns 1,397,588 shares of the company’s stock valued at $56,449,000 after buying an additional 345,119 shares during the last quarter. CenterBook Partners LP bought a new stake in DigitalOcean during the 4th quarter valued at $7,633,000. C2P Capital Advisory Group LLC d.b.a. Prosperity Capital Advisors bought a new stake in DigitalOcean during the 4th quarter valued at $5,382,000. Finally, Bank of New York Mellon Corp raised its holdings in DigitalOcean by 19.7% during the 4th quarter. Bank of New York Mellon Corp now owns 791,861 shares of the company’s stock valued at $26,979,000 after buying an additional 130,263 shares during the last quarter. 49.77% of the stock is currently owned by institutional investors.

Insiders Place Their Bets

In other news, insider Bratin Saha sold 4,289 shares of the business’s stock in a transaction that occurred on Tuesday, January 21st. The shares were sold at an average price of $36.80, for a total value of $157,835.20. Following the completion of the sale, the insider now directly owns 372,762 shares in the company, valued at approximately $13,717,641.60. The trade was a 1.14 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CFO Matt Steinfort sold 12,498 shares of the business’s stock in a transaction that occurred on Wednesday, December 4th. The stock was sold at an average price of $40.00, for a total transaction of $499,920.00. Following the completion of the sale, the chief financial officer now owns 517,498 shares of the company’s stock, valued at approximately $20,699,920. The trade was a 2.36 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 20,255 shares of company stock valued at $790,163 in the last quarter. Corporate insiders own 0.74% of the company’s stock.

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).