KeyCorp Forecasts DigitalOcean’s FY2027 Earnings (NYSE:DOCN)

DigitalOcean Holdings, Inc. (NYSE:DOCN) – Research analysts at KeyCorp issued their FY2027 earnings per share estimates for DigitalOcean in a research note issued to investors on Tuesday, June 2nd. KeyCorp analyst J. Ader expects that the company will post earnings per share of $1.41 for the year. KeyCorp has a “Strong-Buy” rating on the stock. The consensus estimate for DigitalOcean’s current full-year earnings is $0.54 per share. KeyCorp also issued estimates for DigitalOcean’s FY2028 earnings at $2.30 EPS.

DigitalOcean (NYSE:DOCN) last released its quarterly earnings results on Tuesday, May 5th. The company reported $0.44 earnings per share for the quarter, topping the consensus estimate of $0.27 by $0.17. The company had revenue of $257.91 million during the quarter, compared to the consensus estimate of $249.76 million. DigitalOcean had a return on equity of 88.86% and a net margin of 24.97%.DigitalOcean’s revenue was up 22.4% compared to the same quarter last year. During the same quarter last year, the business posted $0.56 earnings per share. DigitalOcean has set its Q2 2026 guidance at 0.200-0.230 EPS and its FY 2026 guidance at 1.100-1.200 EPS.

DOCN has been the topic of several other research reports. Citizens Jmp raised their price objective on DigitalOcean from $83.00 to $105.00 and gave the stock a “market outperform” rating in a report on Thursday, March 26th. Citigroup raised their price objective on DigitalOcean from $115.00 to $180.00 and gave the stock a “buy” rating in a report on Thursday, May 7th. Bank of America raised their price objective on DigitalOcean from $103.00 to $107.00 and gave the stock a “buy” rating in a report on Thursday, April 9th. Canaccord Genuity Group raised their price objective on DigitalOcean from $120.00 to $200.00 and gave the stock a “buy” rating in a report on Wednesday, May 6th. Finally, Oppenheimer set a $190.00 price objective on DigitalOcean in a report on Wednesday, May 6th. One research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $146.36.

DigitalOcean Price Performance

DOCN stock opened at $169.92 on Monday. DigitalOcean has a 52-week low of $25.56 and a 52-week high of $184.46. The stock’s fifty day simple moving average is $122.61 and its 200-day simple moving average is $79.65. The company has a quick ratio of 1.46, a current ratio of 1.46 and a debt-to-equity ratio of 0.92. The stock has a market capitalization of $17.73 billion, a price-to-earnings ratio of 74.20 and a beta of 1.59.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in DOCN. Allworth Financial LP boosted its holdings in DigitalOcean by 54.4% in the third quarter. Allworth Financial LP now owns 724 shares of the company’s stock valued at $25,000 after acquiring an additional 255 shares during the last quarter. Parallel Advisors LLC boosted its holdings in DigitalOcean by 66.2% in the first quarter. Parallel Advisors LLC now owns 324 shares of the company’s stock valued at $28,000 after acquiring an additional 129 shares during the last quarter. Huntington National Bank boosted its holdings in DigitalOcean by 638.3% in the fourth quarter. Huntington National Bank now owns 598 shares of the company’s stock valued at $29,000 after acquiring an additional 517 shares during the last quarter. NBC Securities Inc. acquired a new position in DigitalOcean in the fourth quarter valued at $32,000. Finally, Banque Cantonale Vaudoise acquired a new position in DigitalOcean in the first quarter valued at $33,000. Institutional investors and hedge funds own 49.77% of the company’s stock.

Insiders Place Their Bets

In related news, Director Hilary Schneider sold 4,338 shares of DigitalOcean stock in a transaction on Friday, May 15th. The stock was sold at an average price of $156.38, for a total value of $678,376.44. Following the transaction, the director owned 24,323 shares in the company, valued at approximately $3,803,630.74. This trade represents a 15.14% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Matt Steinfort sold 25,000 shares of DigitalOcean stock in a transaction on Friday, May 15th. The shares were sold at an average price of $152.50, for a total value of $3,812,500.00. Following the completion of the transaction, the chief financial officer owned 573,272 shares in the company, valued at $87,423,980. The trade was a 4.18% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 39,338 shares of company stock worth $6,191,576 in the last quarter. 0.96% of the stock is owned by insiders.

DigitalOcean Company Profile

DigitalOcean Holdings, Inc is a cloud infrastructure provider that focuses on simplicity, performance and developer experience. The company offers a range of cloud services designed to help software developers, startups and small- to medium-sized businesses deploy, manage and scale applications. Its flagship offering, Droplets, provides virtual private servers that can be configured with various CPU, memory and storage options. In addition to compute instances, DigitalOcean’s platform includes managed Kubernetes, scalable object and block storage, managed databases, load balancers and networking capabilities such as Virtual Private Cloud (VPC) and Floating IPs.

Founded in 2011 and headquartered in New York City, DigitalOcean was created with the goal of making cloud computing more accessible to individual developers and smaller teams.