DigitalOcean (NYSE:DOCN) Releases Quarterly Earnings Results, Beats Estimates By $0.15 EPS

DigitalOcean (NYSE:DOCN) released its earnings results on Tuesday. The company reported $0.49 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.34 by $0.15, RTT News reports. DigitalOcean had a negative return on equity of 43.11% and a net margin of 10.86%. The business had revenue of $204.90 million for the quarter, compared to analyst estimates of $200.54 million. During the same quarter in the prior year, the company posted $0.44 earnings per share. DigitalOcean’s revenue was up 13.3% on a year-over-year basis.

DigitalOcean Stock Performance

Shares of NYSE DOCN traded up $4.75 during trading hours on Tuesday, reaching $41.92. 2,380,360 shares of the stock were exchanged, compared to its average volume of 1,238,202. The firm has a market capitalization of $3.87 billion, a price-to-earnings ratio of 48.87, a P/E/G ratio of 3.12 and a beta of 1.81. DigitalOcean has a 52 week low of $26.63 and a 52 week high of $47.02. The stock’s fifty day simple moving average is $38.64 and its 200 day simple moving average is $39.05.

Insider Buying and Selling

In other news, CFO Matt Steinfort sold 12,498 shares of the stock in a transaction on Wednesday, December 4th. The stock was sold at an average price of $40.00, for a total value of $499,920.00. Following the completion of the transaction, the chief financial officer now directly owns 517,498 shares in the company, valued at approximately $20,699,920. This represents a 2.36 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Bratin Saha sold 3,468 shares of the firm’s stock in a transaction on Wednesday, December 18th. The stock was sold at an average price of $38.18, for a total value of $132,408.24. Following the transaction, the insider now directly owns 379,795 shares of the company’s stock, valued at approximately $14,500,573.10. This represents a 0.90 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 20,255 shares of company stock valued at $790,163 over the last 90 days. 0.74% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on the company. JMP Securities upped their target price on DigitalOcean from $47.00 to $55.00 and gave the stock a “market outperform” rating in a report on Monday, January 27th. Citigroup initiated coverage on DigitalOcean in a report on Friday, January 24th. They set a “buy” rating and a $45.00 target price on the stock. Needham & Company LLC restated a “hold” rating on shares of DigitalOcean in a research note on Tuesday, November 5th. Cantor Fitzgerald initiated coverage on DigitalOcean in a research note on Friday, January 17th. They issued a “neutral” rating and a $39.00 price objective on the stock. Finally, Stifel Nicolaus upped their price objective on DigitalOcean from $35.00 to $40.00 and gave the company a “hold” rating in a research note on Wednesday, December 18th. Six equities research analysts have rated the stock with a hold rating and five have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, DigitalOcean presently has a consensus rating of “Hold” and an average price target of $42.40.

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).