Datadog (NASDAQ:DDOG) Given "Buy" Rating at Needham & Company LLC

Key Points

• Needham reaffirmed its Buy rating on Datadog and set a $300 price target, implying 59.55% upside from the prior close. Analysts’ consensus rating is Moderate Buy, with an average target of $287.35.
• Datadog’s third-quarter results beat expectations: revenue rose 35.2% year over year to $1.20 billion, and EPS of $0.81 exceeded the $0.64 consensus.
• Investors may be concerned about the outlook: fourth-quarter revenue is expected to be roughly flat with Q3, and Datadog shares fell $32.49 to $188.03 in Wednesday trading.

Datadog (NASDAQ:DDOG - Get Free Report)'s stock had its "buy" rating reaffirmed by equities research analysts at Needham & Company LLC in a note issued to investors on Wednesday, Benzinga reports. They currently have a $300.00 price objective on the stock. Needham & Company LLC's price objective points to a potential upside of 59.55% from the stock's previous close.

Other research analysts also recently issued reports about the stock. Zacks Research downgraded shares of Datadog from a "strong-buy" rating to a "hold" rating in a research report on Monday, August 17th. TD Cowen reaffirmed a "buy" rating on shares of Datadog in a report on Monday, October 26th. KeyCorp upped their price objective on Datadog from $225.00 to $320.00 and gave the company an "overweight" rating in a research note on Thursday, July 16th. Guggenheim increased their price objective on Datadog from $225.00 to $300.00 and gave the company a "buy" rating in a report on Wednesday, July 22nd. Finally, Wells Fargo & Company increased their price objective on Datadog from $295.00 to $325.00 and gave the company an "overweight" rating in a report on Wednesday, October 28th. Three equities research analysts have rated the stock with a Strong Buy rating, forty have assigned a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Datadog has a consensus rating of "Moderate Buy" and a consensus price target of $287.35.

Datadog Stock Performance

Shares of NASDAQ DDOG traded down $32.49 during mid-day trading on Wednesday, reaching $188.03. 7,893,415 shares of the company's stock were exchanged, compared to its average volume of 5,078,675. The firm has a market capitalization of $67.52 billion, a price-to-earnings ratio of 384.96, a price-to-earnings-growth ratio of 21.09 and a beta of 1.50. Datadog has a 52 week low of $98.01 and a 52 week high of $300.68. The company has a debt-to-equity ratio of 0.23, a current ratio of 3.20 and a quick ratio of 3.20. The firm has a 50-day moving average price of $250.77 and a two-hundred day moving average price of $199.09.

Datadog (NASDAQ:DDOG - Get Free Report) last posted its quarterly earnings data on Wednesday, November 4th. The company reported $0.81 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.64 by $0.17. Datadog had a net margin of 4.48% and a return on equity of 5.67%. The business had revenue of $1.20 billion during the quarter, compared to the consensus estimate of $1.15 billion. During the same quarter last year, the company posted $0.55 earnings per share. The firm's quarterly revenue was up 35.2% compared to the same quarter last year. Analysts predict that Datadog will post 0.70 EPS for the current year.

Insider Activity

In related news, CTO Alexis Le-Quoc sold 53,912 shares of the business's stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $253.36, for a total transaction of $13,659,144.32. Following the completion of the transaction, the chief technology officer directly owned 509,805 shares in the company, valued at $129,164,194.80. The trade was a 9.56% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO David Obstler sold 40,000 shares of Datadog stock in a transaction dated Monday, September 14th. The shares were sold at an average price of $227.47, for a total value of $9,098,800.00. Following the sale, the chief financial officer owned 378,067 shares of the company's stock, valued at approximately $85,998,900.49. This trade represents a 9.57% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 765,293 shares of company stock valued at $180,233,548 over the last ninety days. 6.48% of the stock is owned by insiders.

Hedge Funds Weigh In On Datadog

Institutional investors have recently made changes to their positions in the stock. Janus Henderson Group PLC raised its position in Datadog by 22.8% during the 1st quarter. Janus Henderson Group PLC now owns 7,749,569 shares of the company's stock valued at $905,570,000 after purchasing an additional 1,439,082 shares during the last quarter. First Trust Advisors LP lifted its holdings in Datadog by 81.5% in the first quarter. First Trust Advisors LP now owns 3,685,562 shares of the company's stock worth $435,081,000 after buying an additional 1,654,429 shares during the period. Bank of New York Mellon Corp boosted its position in Datadog by 30.3% during the 1st quarter. Bank of New York Mellon Corp now owns 2,645,827 shares of the company's stock valued at $312,340,000 after acquiring an additional 615,090 shares in the last quarter. Assenagon Asset Management S.A. lifted its stake in shares of Datadog by 197.9% in the 3rd quarter. Assenagon Asset Management S.A. now owns 2,443,008 shares of the company's stock valued at $669,018,000 after purchasing an additional 1,622,904 shares during the period. Finally, Arrowstreet Capital Limited Partnership lifted its stake in shares of Datadog by 162.2% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 1,571,018 shares of the company's stock valued at $185,459,000 after purchasing an additional 971,910 shares during the period. Institutional investors own 78.29% of the company's stock.

Datadog News Roundup

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Q3 revenue rose 35.2% year over year to $1.20 billion, beating the $1.15 billion consensus, while adjusted EPS of $0.81 topped estimates of $0.64. Datadog also reported stronger operational results and raised its guidance. Datadog Announces Third Quarter 2026 Financial Results
• Positive Sentiment: Customer expansion was notable: Datadog had about 4,860 customers generating at least $100,000 in annual recurring revenue, up from roughly 4,060 a year earlier. The company also launched Scout 1.0, its first specialized model, for its Bits Investigation product. Datadog Announces Third Quarter 2026 Financial Results
• Negative Sentiment: The main concern is the fourth-quarter outlook: revenue is expected to be around $1.20 billion, roughly flat with Q3. Investors may see this as a slowdown after 35% annual growth, making the outlook disappointing relative to elevated expectations despite the quarterly beat. Datadog Guides Q4 Sales Flat After 35% Growth

Datadog Company Profile

Datadog, Inc is a technology company that provides a cloud-based monitoring and security platform for applications, infrastructure and other technology environments. Its platform helps organizations collect, analyze and visualize data from servers, databases, containers, cloud services, applications and user interactions in a unified environment.

Datadog's products include infrastructure monitoring, application performance monitoring, log management, real user monitoring, synthetic monitoring, network performance monitoring, cloud security, software delivery tools and incident-management capabilities.

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