Datadog (NASDAQ:DDOG) Price Target Cut to $300.00 by Analysts at Wells Fargo & Company

Key Points

• Wells Fargo cut Datadog’s price target to $300 from $325 but maintained an Overweight rating, implying about 70% upside from the cited share price of $176.60.
• Analyst sentiment remains broadly positive: MarketBeat cited a “Moderate Buy” consensus and an average price target of $278.46.
• Datadog beat quarterly estimates, reporting revenue up 35% year over year and EPS of $0.81 versus the $0.64 consensus, though shares fell 6.4% on Thursday.

Datadog (NASDAQ:DDOG - Get Free Report) had its price objective decreased by analysts at Wells Fargo & Company from $325.00 to $300.00 in a note issued to investors on Thursday, Benzinga reports. The firm presently has an "overweight" rating on the stock. Wells Fargo & Company's price objective suggests a potential upside of 69.88% from the stock's current price.

A number of other brokerages have also weighed in on DDOG. Evercore restated an "outperform" rating and issued a $300.00 target price on shares of Datadog in a research note on Monday. Oppenheimer upped their target price on Datadog from $300.00 to $330.00 and gave the company an "outperform" rating in a report on Monday, October 26th. Royal Bank Of Canada restated an "outperform" rating and set a $270.00 price target on shares of Datadog in a research report on Thursday. DA Davidson reaffirmed a "buy" rating and issued a $315.00 price target on shares of Datadog in a research note on Friday, August 7th. Finally, Morgan Stanley boosted their price target on Datadog from $225.00 to $300.00 and gave the stock an "overweight" rating in a research report on Tuesday, July 28th. Two analysts have rated the stock with a Strong Buy rating, forty-one have issued a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $278.46.

Datadog Stock Down 6.4%

Shares of NASDAQ DDOG traded down $12.12 during trading on Thursday, hitting $176.60. 4,494,510 shares of the company traded hands, compared to its average volume of 5,098,736. Datadog has a fifty-two week low of $98.01 and a fifty-two week high of $300.68. The firm has a market capitalization of $63.41 billion, a price-to-earnings ratio of 362.26, 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 quick ratio of 3.20 and a current ratio of 3.20. The business's fifty day moving average is $250.09 and its 200 day moving average is $199.43.

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

Insiders Place Their Bets

In related news, Director Matthew Jacobson sold 39,912 shares of the company's stock in a transaction on Thursday, August 13th. The shares were sold at an average price of $250.55, for a total transaction of $9,999,951.60. Following the completion of the transaction, the director owned 544,220 shares in the company, valued at approximately $136,354,321. This represents a 6.83% 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 this hyperlink. Also, CTO Alexis Le-Quoc sold 53,912 shares of the firm's stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $253.36, for a total value of $13,659,144.32. Following the transaction, the chief technology officer owned 509,805 shares of the company's stock, valued at approximately $129,164,194.80. The trade was a 9.56% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 745,293 shares of company stock worth $175,536,548. 6.48% of the stock is currently owned by insiders.

Institutional Trading of Datadog

A number of large investors have recently added to or reduced their stakes in the company. EMC Capital Management purchased a new position in shares of Datadog during the 2nd quarter valued at about $28,000. Cornerstone Financial Management LLC boosted its stake in shares of Datadog by 54.9% in the second quarter. Cornerstone Financial Management LLC now owns 127 shares of the company's stock worth $33,000 after acquiring an additional 45 shares during the last quarter. Elevation Wealth Partners LLC grew its holdings in shares of Datadog by 2,700.0% during the second 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 position in Datadog in the 3rd quarter worth approximately $46,000. Finally, Planning Strategies Inc. increased its stake in shares of Datadog by 529.6% in the 3rd quarter. Planning Strategies Inc. now owns 170 shares of the company's stock worth $47,000 after acquiring an additional 143 shares during the last quarter. Institutional investors 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% year over year to $1.20 billion, beating expectations, while adjusted EPS of $0.81 topped the $0.64 consensus. Datadog also raised its full-year outlook. Datadog beats Q3 earnings and revenue estimates
• Positive Sentiment: Underlying demand indicators were solid: non-AI customer revenue grew in the high 20s, infrastructure monitoring ARR exceeded $2 billion, and the number of customers with at least $100,000 in ARR increased to about 4,860 from 4,060 a year earlier. Three takeaways for long-term investors
• Neutral Sentiment: Some analysts remain bullish, with Wedbush retaining an Outperform rating and Cantor Fitzgerald an Overweight rating, although both cut their price targets. Wedbush rating and price target
• Negative Sentiment: Management’s Q4 revenue outlook points to a marked slowdown from Q3’s 35% growth, with revenue expected near $1.20 billion—roughly flat sequentially. Investors are also concerned that a large AI customer reduced usage and that lower-priced AI renewals and customer volatility could weigh on growth. Lower usage from major AI customer weighs on growth
• Negative Sentiment: Valuation adds to the pressure: after a sharp post-earnings decline, investors appear to be demanding stronger forward growth to support DDOG’s premium multiples. Datadog AI growth and valuation analysis

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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