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

Key Points

• KeyCorp raised its outlook on DigitalOcean, forecasting FY2027 EPS of $1.41 and FY2028 EPS of $2.30, well above the current consensus estimate of $0.54 for the full year.
• Wall Street sentiment remains broadly positive, with multiple firms recently lifting price targets sharply higher; MarketBeat shows a consensus rating of “Moderate Buy” and an average target price of $146.36.
• DigitalOcean continues to show strong operating momentum, having reported Q1 revenue growth of 22.4% year over year and EPS of $0.44, beating analyst expectations, though insiders have recently sold shares.

DigitalOcean Holdings, Inc. (NYSE:DOCN - Free Report) - Research analysts at KeyCorp issued their FY2027 earnings per share estimates for shares of DigitalOcean in a research report issued to clients and 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.

A number of other brokerages also recently issued reports on DOCN. Citigroup increased their target price on DigitalOcean from $115.00 to $180.00 and gave the stock a "buy" rating in a research note on Thursday, May 7th. Barclays increased their target price on DigitalOcean from $105.00 to $183.00 and gave the stock an "overweight" rating in a research note on Wednesday, May 6th. Morgan Stanley increased their target price on DigitalOcean from $75.00 to $175.00 and gave the stock an "overweight" rating in a research note on Wednesday, May 6th. Royal Bank Of Canada set a $60.00 target price on DigitalOcean in a research note on Tuesday, February 24th. Finally, UBS Group increased their target price on DigitalOcean to $175.00 and gave the stock a "neutral" rating in a research note on Tuesday, May 12th. One analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat, DigitalOcean currently has a consensus rating of "Moderate Buy" and an average target price of $146.36.

DigitalOcean Stock Performance

Shares of DOCN stock opened at $169.92 on Monday. The company has a market cap of $17.73 billion, a price-to-earnings ratio of 74.20 and a beta of 1.59. The stock has a 50 day simple moving average of $122.61 and a 200-day simple moving average of $79.65. DigitalOcean has a 12-month low of $25.56 and a 12-month high of $184.46. The company has a current ratio of 1.46, a quick ratio of 1.46 and a debt-to-equity ratio of 0.92.

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

Hedge Funds Weigh In On DigitalOcean

Several hedge funds have recently bought and sold shares of the company. Principal Financial Group Inc. increased its position in DigitalOcean by 155.3% during the first quarter. Principal Financial Group Inc. now owns 1,108,420 shares of the company's stock worth $95,080,000 after buying an additional 674,231 shares in the last quarter. Alyeska Investment Group L.P. purchased a new position in DigitalOcean during the third quarter worth $21,808,000. Arrowstreet Capital Limited Partnership increased its position in DigitalOcean by 90.9% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 1,194,845 shares of the company's stock worth $57,496,000 after buying an additional 568,823 shares in the last quarter. Vanguard Group Inc. increased its position in DigitalOcean by 5.0% during the third quarter. Vanguard Group Inc. now owns 9,362,889 shares of the company's stock worth $319,836,000 after buying an additional 442,617 shares in the last quarter. Finally, Franklin Resources Inc. increased its position in DigitalOcean by 784.2% during the fourth quarter. Franklin Resources Inc. now owns 494,314 shares of the company's stock worth $23,786,000 after buying an additional 438,411 shares in the last quarter. 49.77% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at DigitalOcean

In related news, Director Hilary Schneider sold 4,338 shares of the firm's stock in a transaction that occurred 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 completion of the transaction, the director directly owned 24,323 shares of the company's stock, valued at $3,803,630.74. This trade represents a 15.14% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Matt Steinfort sold 25,000 shares of the firm's stock in a transaction that occurred 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 directly owned 573,272 shares of the company's stock, valued at $87,423,980. The trade was a 4.18% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 39,338 shares of company stock valued at $6,191,576 over the last ninety days. 0.96% of the stock is currently owned by company 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.

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