Datadog (NASDAQ:DDOG) Given New $275.00 Price Target at DA Davidson

Key Points

• DA Davidson cut Datadog’s price target to $275 from $315 but maintained a Buy rating, implying 56.19% upside from the stock’s current price.
• Analyst sentiment remains broadly positive: MarketBeat reports a Moderate Buy consensus and an average price target of $276.33, despite several firms trimming targets.
• Datadog beat quarterly expectations, reporting revenue of $1.20 billion, up 35.2% year over year, and EPS of $0.81 versus estimates of $0.64. Shares nevertheless fell 6.7% to $176.07 during Thursday trading.

Datadog (NASDAQ:DDOG - Get Free Report) had its price target cut by analysts at DA Davidson from $315.00 to $275.00 in a research report issued to clients and investors on Thursday, Benzinga reports. The brokerage presently has a "buy" rating on the stock. DA Davidson's price target suggests a potential upside of 56.19% from the stock's current price.

A number of other research firms have also recently issued reports on DDOG. Needham & Company LLC reiterated a "buy" rating and set a $300.00 target price on shares of Datadog in a report on Wednesday. Cantor Fitzgerald reduced their price objective on Datadog from $327.00 to $260.00 and set an "overweight" rating for the company in a research report on Thursday. Sanford C. Bernstein reduced their price objective on Datadog from $350.00 to $273.00 and set an "outperform" rating for the company in a research report on Thursday. Raymond James Financial reiterated an "outperform" rating and set a $280.00 price objective on shares of Datadog in a report on Thursday, August 6th. Finally, Mizuho lifted their target price on Datadog from $300.00 to $330.00 and gave the company an "outperform" rating in a research report on Thursday, October 15th. Two analysts have rated the stock with a Strong Buy rating, forty-one have assigned a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $276.33.

Datadog Stock Down 6.7%

DDOG stock traded down $12.65 during mid-day trading on Thursday, hitting $176.07. 6,742,301 shares of the company were exchanged, compared to its average volume of 5,110,398. The company has a debt-to-equity ratio of 0.23, a quick ratio of 3.20 and a current ratio of 3.20. The firm has a market cap of $63.22 billion, a P/E ratio of 357.84, a P/E/G ratio of 21.50 and a beta of 1.50. The firm's 50 day simple moving average is $250.09 and its 200 day simple moving average is $199.43. Datadog has a 1-year low of $98.01 and a 1-year high of $300.68.

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

Insider Buying and Selling

In related news, CTO Alexis Le-Quoc sold 53,912 shares of the company'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 sale, the chief technology officer owned 509,805 shares in the company, valued at approximately $129,164,194.80. This represents a 9.56% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible 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 the stock in a transaction that occurred on 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 transaction, the chief financial officer directly owned 378,067 shares of the company's stock, valued at $85,998,900.49. This trade represents a 9.57% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 745,293 shares of company stock worth $175,536,548 over the last 90 days. 6.48% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of DDOG. Cornerstone Financial Management LLC boosted its holdings in shares of Datadog by 54.9% in the 2nd quarter. Cornerstone Financial Management LLC now owns 127 shares of the company's stock valued at $33,000 after buying an additional 45 shares during the last quarter. QTR Family Wealth LLC increased its holdings in Datadog by 3.2% during the third quarter. QTR Family Wealth LLC now owns 1,499 shares of the company's stock worth $411,000 after buying an additional 47 shares during the last quarter. United Asset Strategies Inc. increased its holdings in Datadog by 1.1% during the third quarter. United Asset Strategies Inc. now owns 5,997 shares of the company's stock worth $1,642,000 after buying an additional 68 shares during the last quarter. State of Wyoming increased its holdings in Datadog by 4.1% during the first quarter. State of Wyoming now owns 1,946 shares of the company's stock worth $230,000 after buying an additional 76 shares during the last quarter. Finally, Roberts Wealth Advisors LLC raised its position in Datadog by 0.6% during the third quarter. Roberts Wealth Advisors LLC now owns 15,720 shares of the company's stock worth $4,305,000 after acquiring an additional 91 shares in the last quarter. 78.29% of the stock is currently owned by institutional investors.

Key Stories Impacting Datadog

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Datadog reported Q3 revenue of $1.20 billion, up 35.2% year over year, and adjusted EPS of $0.81, both ahead of analysts’ expectations. The company also raised its full-year outlook. Datadog Announces Third Quarter 2026 Financial Results
• Positive Sentiment: AI workloads and broader product adoption supported growth; Datadog also said non-AI customer revenue grew in the high-20s and infrastructure-monitoring ARR exceeded $2 billion. Datadog: 3 Key Takeaways for Long-Term Investors
• Neutral Sentiment: Several analysts lowered price targets after the results, while maintaining positive ratings: Wells Fargo cut its target to $300 and Wedbush to $240, both retaining overweight/outperform ratings. Wells Fargo analyst rating
• Negative Sentiment: Investors are concerned that Q4 revenue growth will slow from Q3’s 35% pace, with the forecast implying roughly 26% year-over-year growth and revenue near the prior quarter’s level. Q3 Earnings Call Highlights AI Growth and Customer Renewals
• Negative Sentiment: Management cited reduced usage by a major AI customer, alongside discounts and lower-priced renewals, as factors weighing on growth. This customer volatility has heightened concerns about the durability of AI-driven demand. Datadog Says Lower Usage From Major AI Customer Is Weighing on Growth
• Negative Sentiment: The stock’s premium valuation may amplify concerns about decelerating growth and contributed to its post-earnings decline, even with results above estimates.

About Datadog

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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