Datadog (NASDAQ:DDOG) Stock Price Target Lowered at Barclays

Key Points

• Barclays cut Datadog’s price target from $300 to $262 but maintained its “overweight” rating; the new target implies 47.37% upside from the prior close.
• Analyst sentiment remains broadly positive: MarketBeat reports a “Moderate Buy” consensus and an average price target of $277.63.
• Datadog beat quarterly estimates, reporting $1.20 billion in revenue, up 35.2% year over year, and earnings per share of $0.81 versus the $0.64 consensus.

Datadog (NASDAQ:DDOG - Get Free Report) had its price target decreased by equities researchers at Barclays from $300.00 to $262.00 in a report issued on Thursday, Benzinga reports. The firm presently has an "overweight" rating on the stock. Barclays's target price would indicate a potential upside of 47.37% from the stock's previous close.

Several other equities research analysts have also commented on the stock. Oppenheimer boosted their target price on shares of Datadog from $300.00 to $330.00 and gave the stock an "outperform" rating in a research report on Monday, October 26th. Canaccord Genuity Group lifted their target price on shares of Datadog from $250.00 to $295.00 and gave the stock a "buy" rating in a research report on Tuesday, August 4th. Canadian Imperial Bank of Commerce boosted their target price on shares of Datadog from $280.00 to $315.00 and gave the company an "outperform" rating in a research note on Friday, October 9th. Scotiabank restated a "sector outperform" rating and issued a $260.00 target price on shares of Datadog in a report on Thursday. Finally, KeyCorp raised their price target on shares of Datadog from $225.00 to $320.00 and gave the stock an "overweight" rating in a research note on Thursday, July 16th. Two research analysts have rated the stock with a Strong Buy rating, forty-one have assigned a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $277.63.

Datadog Stock Performance

Datadog stock traded down $10.94 during trading hours on Thursday, reaching $177.78. 6,144,871 shares of the stock were exchanged, compared to its average volume of 5,108,529. Datadog has a 52-week low of $98.01 and a 52-week high of $300.68. 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's 50 day moving average is $250.09 and its 200 day moving average is $199.43. The stock has a market cap of $63.84 billion, a P/E ratio of 362.43, a P/E/G ratio of 21.50 and a beta of 1.50.

Datadog (NASDAQ:DDOG - Get Free Report) last posted its quarterly earnings results 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 firm had revenue of $1.20 billion during the quarter, compared to analysts' expectations of $1.15 billion. During the same period in the prior year, the company posted $0.55 earnings per share. The firm's revenue for the quarter was up 35.2% on a year-over-year basis. Analysts predict that Datadog will post 0.70 EPS for the current fiscal year.

Insiders Place Their Bets

In other Datadog news, CFO David Obstler sold 40,000 shares of the business's stock in a transaction on Monday, September 14th. The shares were sold at an average price of $227.47, for a total transaction of $9,098,800.00. Following the completion of the sale, the chief financial officer owned 378,067 shares in the company, valued at $85,998,900.49. The trade was a 9.57% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Olivier Pomel sold 89,497 shares of the stock in a transaction that occurred on Tuesday, September 8th. The stock was sold at an average price of $207.86, for a total value of $18,602,846.42. Following the sale, the chief executive officer owned 586,416 shares in the company, valued at $121,892,429.76. The trade was a 13.24% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 745,293 shares of company stock valued at $175,536,548. Company insiders own 6.48% of the company's stock.

Institutional Investors Weigh In On Datadog

Several large investors have recently modified their holdings of the stock. Janus Henderson Group PLC grew its stake in Datadog by 22.8% in the first quarter. Janus Henderson Group PLC now owns 7,749,569 shares of the company's stock valued at $905,570,000 after acquiring an additional 1,439,082 shares during the period. First Trust Advisors LP increased its holdings in shares of Datadog by 81.5% during the first quarter. First Trust Advisors LP now owns 3,685,562 shares of the company's stock valued at $435,081,000 after acquiring an additional 1,654,429 shares in the last quarter. Bank of New York Mellon Corp raised its position in shares of Datadog by 30.3% during the first quarter. Bank of New York Mellon Corp now owns 2,645,827 shares of the company's stock worth $312,340,000 after purchasing an additional 615,090 shares during the period. Assenagon Asset Management S.A. raised its position in shares of Datadog by 197.9% during the third 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 period. Finally, Arrowstreet Capital Limited Partnership lifted its holdings 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 worth $185,459,000 after purchasing an additional 971,910 shares in the last quarter. 78.29% of the stock is owned by institutional investors.

More Datadog News

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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