Datadog (NASDAQ:DDOG) Stock Price Expected to Rise, Royal Bank Of Canada Analyst Says

Key Points

• Royal Bank of Canada raised Datadog’s price target to $320 from $280 while maintaining an “outperform” rating, implying approximately 9.1% upside.
• Analyst sentiment remains broadly positive: Datadog has an average “Moderate Buy” rating and a consensus price target of $280.29, with several firms recently raising targets or initiating bullish coverage.
• Datadog reported quarterly results above expectations, including $0.65 in EPS and $1.12 billion in revenue, with revenue up 35.6% year over year. However, insiders sold nearly 992,000 shares worth about $241.4 million over the past 90 days.

Datadog (NASDAQ:DDOG - Get Free Report) had its price objective raised by research analysts at Royal Bank Of Canada from $280.00 to $320.00 in a research report issued on Monday, Benzinga reports. The firm currently has an "outperform" rating on the stock. Royal Bank Of Canada's price objective would suggest a potential upside of 9.08% from the stock's current price.

Several other research firms have also recently issued reports on DDOG. Craig Hallum initiated coverage on shares of Datadog in a research report on Monday, June 15th. They set a "buy" rating on the stock. Canadian Imperial Bank of Commerce boosted their target price on shares of Datadog from $280.00 to $315.00 and gave the stock an "outperform" rating in a report on Friday. Truist Financial upgraded shares of Datadog from a "hold" rating to a "buy" rating and upped their target price for the stock from $190.00 to $300.00 in a research report on Monday, June 15th. Barclays upped their target price on shares of Datadog from $260.00 to $290.00 and gave the stock an "overweight" rating in a research report on Tuesday, July 21st. Finally, FBN Securities assumed coverage on shares of Datadog in a research note on Friday, October 2nd. They set an "outperform" rating and a $325.00 target price for the company. Three investment analysts have rated the stock with a Strong Buy rating, thirty-eight have given a Buy rating, four have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Datadog currently has an average rating of "Moderate Buy" and an average target price of $280.29.

Datadog Stock Performance

NASDAQ:DDOG opened at $293.36 on Monday. The stock has a 50-day moving average price of $245.78 and a 200 day moving average price of $216.70. The stock has a market capitalization of $105.34 billion, a P/E ratio of 605.66, a P/E/G ratio of 28.62 and a beta of 1.51. Datadog has a 12-month low of $98.01 and a 12-month high of $294.88. The company has a current ratio of 3.20, a quick ratio of 3.20 and a debt-to-equity ratio of 0.23.

Datadog (NASDAQ:DDOG - Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The company reported $0.65 EPS for the quarter, topping analysts' consensus estimates of $0.58 by $0.07. Datadog had a return on equity of 5.67% and a net margin of 4.48%. The company had revenue of $1.12 billion for the quarter, compared to analysts' expectations of $1.08 billion. During the same period in the previous year, the firm earned $0.46 EPS. The firm's revenue was up 35.6% compared to the same quarter last year. Datadog has set its Q3 2026 guidance at 0.630-0.650 EPS and its FY 2026 guidance at 2.500-2.540 EPS. Equities research analysts forecast that Datadog will post 0.70 EPS for the current fiscal year.

Insider Activity at Datadog

In related news, insider Yanbing Li sold 12,700 shares of the company's stock in a transaction on Friday, September 11th. The stock was sold at an average price of $221.26, for a total transaction of $2,810,002.00. Following the completion of the sale, the insider directly owned 250,446 shares in the company, valued at $55,413,681.96. This represents a 4.83% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Alexis Le-Quoc sold 53,912 shares of the firm's stock in a transaction dated Wednesday, October 7th. The shares were sold at an average price of $273.60, for a total transaction of $14,750,323.20. Following the completion of the sale, the chief technology officer owned 488,033 shares in the company, valued at $133,525,828.80. This represents a 9.95% 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 991,988 shares of company stock worth $241,440,796 over the last ninety days. 6.48% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Datadog

Several institutional investors and hedge funds have recently bought and sold shares of the company. EMC Capital Management purchased a new stake in Datadog in the 2nd quarter worth approximately $28,000. Cornerstone Financial Management LLC grew its stake in shares of Datadog by 54.9% during the 2nd quarter. Cornerstone Financial Management LLC now owns 127 shares of the company's stock worth $33,000 after purchasing an additional 45 shares during the period. Annis Gardner Whiting Capital Advisors LLC increased its holdings in shares of Datadog by 341.7% during the 1st quarter. Annis Gardner Whiting Capital Advisors LLC now owns 318 shares of the company's stock valued at $38,000 after purchasing an additional 246 shares in the last quarter. Elevation Wealth Partners LLC increased its holdings in shares of Datadog by 2,700.0% during the 2nd quarter. Elevation Wealth Partners LLC now owns 168 shares of the company's stock valued at $44,000 after purchasing an additional 162 shares in the last quarter. Finally, Armstrong Advisory Group Inc. acquired a new position in shares of Datadog in the 3rd quarter valued at $46,000. 78.29% of the stock is owned by hedge funds and other institutional investors.

Datadog Company Profile

Datadog, Inc is a software company that provides a cloud-based monitoring, observability and security platform. Its services help organizations collect, analyze and visualize data from applications, infrastructure, networks, databases and other technology environments, enabling them to identify performance issues, manage incidents and improve digital services.

The company's product offerings include infrastructure monitoring, application performance monitoring, log management, database and network monitoring, real user and synthetic experience monitoring, cloud security, software supply chain security, incident management and workflow automation.

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