DigitalOcean (NYSE:DOCN) Issues Quarterly Earnings Results

DigitalOcean (NYSE:DOCN) posted its earnings results on Wednesday. The company reported $0.54 EPS for the quarter, topping the consensus estimate of $0.31 by $0.23, Briefing.com reports. DigitalOcean had a net margin of 29.15% and a negative return on equity of 92.51%. The firm had revenue of $229.63 million during the quarter, compared to analysts’ expectations of $226.55 million. During the same period last year, the company posted $0.52 EPS. The company’s quarterly revenue was up 15.9% compared to the same quarter last year. DigitalOcean updated its Q4 2025 guidance to 0.350-0.400 EPS and its FY 2025 guidance to 2.000-2.050 EPS.

DigitalOcean Stock Up 5.1%

Shares of NYSE:DOCN traded up $2.40 on Friday, hitting $49.48. 3,660,506 shares of the company traded hands, compared to its average volume of 2,038,990. The stock has a 50 day simple moving average of $37.69 and a 200-day simple moving average of $32.35. The company has a market cap of $4.50 billion, a PE ratio of 19.95, a PEG ratio of 2.60 and a beta of 1.78. DigitalOcean has a 52 week low of $25.45 and a 52 week high of $49.62.

Insider Buying and Selling

In related news, insider Bratin Saha sold 13,010 shares of the stock in a transaction dated Wednesday, September 3rd. The shares were sold at an average price of $31.87, for a total transaction of $414,628.70. Following the sale, the insider directly owned 269,465 shares of the company’s stock, valued at approximately $8,587,849.55. This represents a 4.61% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Company insiders own 0.96% of the company’s stock.

Institutional Investors Weigh In On DigitalOcean

Institutional investors have recently made changes to their positions in the company. State of Wyoming raised its holdings in DigitalOcean by 49.6% in the 2nd quarter. State of Wyoming now owns 6,750 shares of the company’s stock worth $193,000 after acquiring an additional 2,239 shares during the last quarter. Tower Research Capital LLC TRC increased its holdings in shares of DigitalOcean by 170.3% in the 2nd quarter. Tower Research Capital LLC TRC now owns 8,878 shares of the company’s stock worth $254,000 after purchasing an additional 5,594 shares in the last quarter. Caption Management LLC raised its stake in shares of DigitalOcean by 148.4% in the second quarter. Caption Management LLC now owns 18,463 shares of the company’s stock worth $527,000 after purchasing an additional 56,604 shares during the last quarter. Amundi lifted its holdings in shares of DigitalOcean by 126,552.2% during the second quarter. Amundi now owns 29,130 shares of the company’s stock valued at $827,000 after purchasing an additional 29,107 shares in the last quarter. Finally, Brevan Howard Capital Management LP bought a new position in shares of DigitalOcean during the second quarter valued at $1,188,000. Hedge funds and other institutional investors own 49.77% of the company’s stock.

Analyst Upgrades and Downgrades

DOCN has been the subject of several research analyst reports. Weiss Ratings restated a “hold (c)” rating on shares of DigitalOcean in a report on Wednesday, October 8th. Stifel Nicolaus set a $36.00 target price on DigitalOcean in a research report on Tuesday, August 5th. UBS Group lifted their price target on DigitalOcean from $40.00 to $48.00 and gave the company a “neutral” rating in a research report on Thursday. Morgan Stanley upped their price target on DigitalOcean from $41.00 to $44.00 and gave the stock an “overweight” rating in a research note on Wednesday, August 6th. Finally, Barclays raised their price objective on DigitalOcean from $40.00 to $49.00 and gave the company an “overweight” rating in a research report on Thursday. Seven research analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat.com, DigitalOcean currently has an average rating of “Moderate Buy” and an average target price of $47.73.

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).