Datadog (NASDAQ:DDOG) Stock Gets Price Target Trim from BTIG Research

Key Points

• BTIG Research lowered its Datadog price target to $260 from $289 but maintained a Buy rating; the new target implied 38.28% upside from the previous close.
• Datadog reported quarterly revenue of $1.20 billion, up 35.2% year over year, and EPS of $0.81, beating analyst estimates for both.
• Shares fell to $188.03 on Wednesday. Investors may have been concerned by the outlook for roughly flat revenue in the fourth quarter; analysts’ average rating was Moderate Buy, with an average price target of $287.35.

Datadog (NASDAQ:DDOG - Get Free Report) had its target price decreased by BTIG Research from $289.00 to $260.00 in a report released on Wednesday, Benzinga reports. The firm currently has a "buy" rating on the stock. BTIG Research's price objective would suggest a potential upside of 38.28% from the company's previous close.

Other equities research analysts also recently issued research reports about the stock. Evercore reaffirmed an "outperform" rating and issued a $300.00 price objective on shares of Datadog in a report on Monday. Jefferies Financial Group reaffirmed a "hold" rating and issued a $300.00 price objective on shares of Datadog in a research note on Sunday, October 11th. Robert W. Baird set a $300.00 price target on shares of Datadog in a research report on Friday, August 7th. Oppenheimer raised their price objective on Datadog from $300.00 to $330.00 and gave the stock an "outperform" rating in a research note on Monday, October 26th. Finally, Needham & Company LLC reaffirmed a "buy" rating and set a $300.00 target price on shares of Datadog in a report on Wednesday. Three investment analysts have rated the stock with a Strong Buy rating, forty have given a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $287.35.

Datadog Stock Performance

DDOG traded down $32.49 on Wednesday, hitting $188.03. 7,893,415 shares of the company's stock were exchanged, compared to its average volume of 5,078,675. Datadog has a twelve month low of $98.01 and a twelve month high of $300.68. The firm has a market cap of $67.52 billion, a PE ratio of 384.96, a P/E/G ratio of 21.09 and a beta of 1.50. The company has a current ratio of 3.20, a quick ratio of 3.20 and a debt-to-equity ratio of 0.23. The stock has a fifty day moving average of $250.77 and a two-hundred day moving average of $199.09.

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

Insider Buying and Selling at Datadog

In other Datadog news, CRO Sean Walters sold 11,710 shares of the company'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 transaction, the executive directly owned 233,135 shares of the company's stock, valued at $51,532,160.40. This represents a 4.78% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO David Obstler sold 10,000 shares of the firm's stock in a transaction dated Monday, September 21st. The stock was sold at an average price of $241.25, for a total value of $2,412,500.00. Following the sale, the chief financial officer directly owned 368,067 shares of the company's stock, valued at $88,796,163.75. This trade represents a 2.65% 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 sold 765,293 shares of company stock valued at $180,233,548 in the last quarter. Corporate insiders own 6.48% of the company's stock.

Hedge Funds Weigh In On Datadog

Hedge funds have recently added to or reduced their stakes in the company. First Trust Advisors LP grew its position 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 acquiring an additional 1,654,429 shares in the last quarter. Assenagon Asset Management S.A. increased its stake in shares of Datadog by 197.9% during the 3rd quarter. Assenagon Asset Management S.A. now owns 2,443,008 shares of the company's stock worth $669,018,000 after purchasing an additional 1,622,904 shares during the last quarter. Janus Henderson Group PLC raised its holdings in shares of 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 in the last quarter. 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 last quarter. Finally, Bank of New York Mellon Corp lifted its stake in shares of Datadog by 30.3% in 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 purchasing an additional 615,090 shares during the last quarter. Institutional investors and hedge funds own 78.29% of the company's stock.

Datadog News Summary

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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