Datadog (NASDAQ:DDOG) Upgraded at Wedbush

Key Points

• Wedbush upgraded Datadog to “strong buy,” while the broader analyst consensus remains “Moderate Buy” with an average price target of $276.66. Several firms recently raised their targets, including Guggenheim and Morgan Stanley to $300.
• Datadog’s latest quarterly results exceeded expectations, with EPS of $0.65 versus a $0.58 estimate and revenue of $1.12 billion versus $1.08 billion expected. Revenue increased 35.6% year over year.
• Insiders sold more than 1.07 million shares worth approximately $260.9 million over the past 90 days, though the transactions were conducted under pre-arranged Rule 10b5-1 plans; institutional investors own 78.29% of the stock.

Datadog (NASDAQ:DDOG - Get Free Report) was upgraded by investment analysts at Wedbush to a "strong-buy" rating in a note issued to investors on Thursday, Zacks reports.

Several other research analysts also recently weighed in on the stock. Evercore upped their target price on shares of Datadog from $225.00 to $265.00 and gave the company an "outperform" rating in a research note on Wednesday, June 10th. Guggenheim upped their price objective on shares of Datadog from $225.00 to $300.00 and gave the company a "buy" rating in a research report on Wednesday, July 22nd. Daiwa Securities Group raised their target price on Datadog from $190.00 to $240.00 and gave the company a "buy" rating in a research note on Wednesday, May 13th. Zacks Research lowered Datadog from a "strong-buy" rating to a "hold" rating in a research report on Monday, August 17th. 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 note on Tuesday, July 28th. Two analysts have rated the stock with a Strong Buy rating, thirty-eight have assigned a Buy rating, four have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $276.66.

Datadog Trading Down 0.2%

Shares of DDOG opened at $221.21 on Thursday. Datadog has a 12 month low of $98.01 and a 12 month high of $292.72. The stock's 50-day moving average is $245.59 and its two-hundred day moving average is $196.67. 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 stock has a market cap of $79.43 billion, a PE ratio of 451.46, a P/E/G ratio of 21.71 and a beta of 1.49.

Datadog (NASDAQ:DDOG - Get Free Report) last posted its earnings results on Thursday, August 6th. The company reported $0.65 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.58 by $0.07. The business had revenue of $1.12 billion during the quarter, compared to analyst estimates of $1.08 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 35.6% compared to the same quarter last year. During the same quarter last year, the firm earned $0.46 earnings per share. 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 analysts forecast that Datadog will post 0.7 earnings per share for the current fiscal year.

Insider Activity

In related news, CTO Alexis Le-Quoc sold 53,912 shares of Datadog stock in a transaction dated Wednesday, July 8th. The stock was sold at an average price of $257.24, for a total value of $13,868,322.88. Following the completion of the transaction, the chief technology officer directly owned 509,805 shares in the company, valued at approximately $131,142,238.20. This trade represents a 9.56% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Olivier Pomel sold 127,141 shares of the business's stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $286.71, for a total value of $36,452,596.11. Following the completion of the sale, the chief executive officer directly owned 612,747 shares of the company's stock, valued at approximately $175,680,692.37. This represents a 17.18% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 1,077,367 shares of company stock worth $260,947,004 in the last ninety days. Corporate insiders own 6.48% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of DDOG. Brighton Jones LLC bought a new position in Datadog in the fourth quarter worth about $209,000. Bison Wealth LLC acquired a new stake in shares of Datadog during the 4th quarter worth approximately $228,000. Empowered Funds LLC lifted its holdings in shares of Datadog by 7.0% in the 1st quarter. Empowered Funds LLC now owns 10,313 shares of the company's stock worth $1,023,000 after purchasing an additional 672 shares during the last quarter. Geneos Wealth Management Inc. lifted its holdings in shares of Datadog by 17.6% in the 1st quarter. Geneos Wealth Management Inc. now owns 769 shares of the company's stock worth $76,000 after purchasing an additional 115 shares during the last quarter. Finally, Sivia Capital Partners LLC acquired a new position in Datadog during the 2nd quarter valued at approximately $509,000. 78.29% of the stock is currently owned by institutional investors.

Datadog Company Profile

Datadog, Inc NASDAQ: DDOG is a cloud-based software company that provides monitoring, observability, security and analytics tools for modern applications and information technology environments. Its platform helps organizations collect, correlate and analyze data from servers, databases, applications, containers, networks and cloud services in a unified environment.

The company's products include infrastructure monitoring, application performance monitoring, log management, real user and synthetic monitoring, database monitoring, cloud security, software delivery tools, incident management and cloud cost management.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.