Datadog (NASDAQ:DDOG) Price Target Cut to $290.00 by Analysts at Citigroup

Key Points

• Citigroup cut its Datadog price target from $305 to $290 but kept a Buy rating, implying 66.09% upside from the reported share price of $174.60.
• Datadog beat quarterly expectations, reporting EPS of $0.81 versus $0.64 expected and revenue of $1.20 billion, up 35.2% year over year.
• Despite the earnings beat, shares fell sharply as investors weighed slower growth implied by Q4 guidance and reduced usage from a major AI customer; analysts’ average rating remains “Moderate Buy.”

Datadog (NASDAQ:DDOG - Get Free Report) had its price target reduced by analysts at Citigroup from $305.00 to $290.00 in a research note issued on Thursday, Benzinga reports. The brokerage presently has a "buy" rating on the stock. Citigroup's price target points to a potential upside of 66.09% from the stock's current price.

DDOG has been the subject of a number of other research reports. Rosenblatt Securities decreased their price target on Datadog from $305.00 to $285.00 and set a "buy" rating for the company in a research report on Thursday. Canaccord Genuity Group boosted their price objective on Datadog from $250.00 to $295.00 and gave the stock a "buy" rating in a report on Tuesday, August 4th. Yorkville Ives began coverage on Datadog in a report on Monday, October 5th. They set an "outperform" rating and a $335.00 price objective on the stock. Zacks Research cut shares of Datadog from a "strong-buy" rating to a "hold" rating in a report on Monday, August 17th. Finally, Barclays decreased their target price on shares of Datadog from $300.00 to $262.00 and set an "overweight" rating for the company in a report on Thursday. Two investment analysts have rated the stock with a Strong Buy rating, forty-one have given a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $275.46.

Datadog Price Performance

Shares of NASDAQ:DDOG traded down $14.12 on Thursday, reaching $174.60. 9,964,634 shares of the company traded hands, compared to its average volume of 5,120,656. The stock has a market capitalization of $62.70 billion, a PE ratio of 356.33, a P/E/G ratio of 21.50 and a beta of 1.50. 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 company's 50 day moving average is $250.09 and its 200-day moving average is $199.43. Datadog has a fifty-two week low of $98.01 and a fifty-two week high of $300.68.

Datadog (NASDAQ:DDOG - Get Free Report) last issued its earnings results 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. The business had revenue of $1.20 billion for the quarter, compared to analysts' expectations of $1.15 billion. Datadog had a return on equity of 5.67% and a net margin of 4.48%. The company's quarterly revenue was up 35.2% on a year-over-year basis. During the same period in the previous year, the firm posted $0.55 EPS. As a group, analysts anticipate that Datadog will post 0.70 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, General Counsel Kerry Acocella sold 5,280 shares of the stock in a transaction dated Monday, September 14th. The stock was sold at an average price of $228.85, for a total value of $1,208,328.00. Following the completion of the sale, the general counsel directly owned 115,243 shares of the company's stock, valued at approximately $26,373,360.55. This represents a 4.38% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CRO Sean Walters sold 11,710 shares of the firm's stock in a transaction dated Friday, September 11th. The stock was sold at an average price of $221.04, for a total value of $2,588,378.40. Following the sale, the executive owned 233,135 shares of the company's stock, valued at $51,532,160.40. The trade was a 4.78% 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 a total of 745,293 shares of company stock valued at $175,536,548 over the last quarter. 6.48% of the stock is owned by insiders.

Hedge Funds Weigh In On Datadog

Large investors have recently made changes to their positions in the business. EMC Capital Management purchased a new position in Datadog during the second quarter valued at approximately $28,000. Cornerstone Financial Management LLC lifted its position in Datadog by 54.9% in the 2nd quarter. Cornerstone Financial Management LLC now owns 127 shares of the company's stock worth $33,000 after buying an additional 45 shares in the last quarter. Elevation Wealth Partners LLC lifted its position in Datadog by 2,700.0% in the 2nd quarter. Elevation Wealth Partners LLC now owns 168 shares of the company's stock worth $44,000 after buying an additional 162 shares in the last quarter. Armstrong Advisory Group Inc. purchased a new stake in Datadog in the 3rd quarter worth approximately $46,000. Finally, Planning Strategies Inc. boosted its stake in shares of Datadog by 529.6% during the 3rd quarter. Planning Strategies Inc. now owns 170 shares of the company's stock valued at $47,000 after buying an additional 143 shares during the period. Institutional investors and hedge funds own 78.29% of the company's stock.

More Datadog News

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Q3 revenue rose 35.2% year over year to $1.20 billion, ahead of expectations, while adjusted EPS of $0.81 topped the $0.64 consensus. Growth in AI workloads and product adoption, along with a larger base of high-spending customers, supports the longer-term growth case. Datadog Q3 Earnings & Revenues Surpass Estimates
• Neutral Sentiment: Several analysts reduced their price targets after the results but maintained bullish ratings, including Rosenblatt ($285), DA Davidson ($275), Barclays ($262), Wells Fargo ($300), Wedbush ($240) and Cantor Fitzgerald ($260). The cuts suggest lower near-term expectations, although the firms still see potential upside. Read More., Read More., Read More., Read More., Read More. and Read More.
• Negative Sentiment: Investors are concerned that Q4 revenue guidance of about $1.20 billion implies a marked growth slowdown from Q3. Lower usage by a major AI customer and discounted AI-related renewals add uncertainty about how quickly that growth can recover. Datadog Says Lower Usage From Major AI Customer Is Weighing on Growth
• Negative Sentiment: Datadog’s premium valuation leaves the shares vulnerable when growth expectations soften, helping explain why the market has reacted negatively despite the earnings beat and higher full-year outlook. Datadog: AI Story Priced For Perfection

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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