Data Storage Sells CloudFirst Assets for $40 Million

Data Storage ( (DTST) ) has issued an update.

On July 11, 2025, Data Storage Corporation entered into an agreement to sell the assets of its subsidiary, CloudFirst Technologies Corporation, to Total Server Solutions Holdings, LLC for $40 million. This divestiture, subject to shareholder approval at the annual meeting on September 10, 2025, aims to accelerate CloudFirst’s growth in a private setting and allow Data Storage to pursue strategic opportunities in high-growth sectors. The transaction will result in CloudFirst joining Performive, backed by Renovus Capital Partners, while Data Storage plans to use the proceeds for a tender offer to repurchase up to 85% of its outstanding shares and invest in sectors like AI-enabled SaaS, cybersecurity, and healthcare automation.

The most recent analyst rating on (DTST) stock is a Buy with a $9.00 price target. To see the full list of analyst forecasts on Data Storage stock, see the DTST Stock Forecast page.

Spark’s Take on DTST Stock

According to Spark, TipRanks’ AI Analyst, DTST is a Neutral.

Data Storage Corporation’s overall stock score reflects a blend of stable financial performance and strategic growth efforts against a backdrop of technical weakness and high valuation concerns. The company’s strong equity position and operational efficiency are offset by bearish technical signals and valuation disconnects. Strategic partnerships and growth in core services are positive, but challenges in revenue growth and profitability need addressing.

To see Spark’s full report on DTST stock, click here.

More about Data Storage

Data Storage Corporation, listed on Nasdaq as DTST, focuses on providing solutions that ensure business continuity, process improvement, and efficiency, while aiming to build shareholder value.

Average Trading Volume: 32,147

Technical Sentiment Signal: Sell

Current Market Cap: $25.2M

See more insights into DTST stock on TipRanks’ Stock Analysis page.