Datadog's (DDOG) Outperform Rating Reiterated at Wedbush

Key Points

• Wedbush reiterated its “Outperform” rating on Datadog and maintained a $275 price target, implying approximately 24% upside from the prior close.
• Datadog reported quarterly EPS of $0.65 and revenue of $1.12 billion, exceeding analyst expectations; revenue increased 35.6% year over year.
• Analyst sentiment remains strongly positive, with a consensus “Moderate Buy” rating and an average price target of $276.66, although company insiders have sold more than $260 million in shares over the past 90 days.

Datadog (NASDAQ:DDOG - Get Free Report)'s stock had its "outperform" rating reiterated by Wedbush in a report issued on Friday, Benzinga reports. They presently have a $275.00 price target on the stock. Wedbush's target price would suggest a potential upside of 24.03% from the company's previous close.

A number of other research firms have also recently issued reports on DDOG. Morgan Stanley boosted their price objective on Datadog from $225.00 to $300.00 and gave the company an "overweight" rating in a research report on Tuesday, July 28th. Cantor Fitzgerald boosted their price target on shares of Datadog from $226.00 to $327.00 and gave the company an "overweight" rating in a report on Monday, August 3rd. Guggenheim raised their price target on shares of Datadog from $225.00 to $300.00 and gave the stock a "buy" rating in a research note on Wednesday, July 22nd. Bank of America lifted their price objective on Datadog from $260.00 to $280.00 and gave the company a "buy" rating in a report on Monday, June 8th. Finally, Truist Financial raised Datadog from a "hold" rating to a "buy" rating and boosted their target price for the stock from $190.00 to $300.00 in a report on Monday, June 15th. One research analyst has rated the stock with a Strong Buy rating, thirty-nine have given a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $276.66.

Datadog Stock Down 1.6%

DDOG stock opened at $221.72 on Friday. The firm has a market cap of $79.62 billion, a PE ratio of 452.50, a PEG ratio of 22.06 and a beta of 1.49. The company has a fifty day simple moving average of $246.37 and a 200 day simple moving average of $196.50. Datadog has a 1 year low of $98.01 and a 1 year high of $292.72. 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 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 for the quarter, compared to analyst estimates of $1.08 billion. Datadog had a net margin of 4.48% and a return on equity of 5.67%. Datadog's revenue was up 35.6% compared to the same quarter last year. During the same period last year, the business posted $0.46 EPS. Datadog has set its Q3 2026 guidance at 0.630-0.650 EPS and its FY 2026 guidance at 2.500-2.540 EPS. Sell-side analysts anticipate that Datadog will post 0.7 EPS for the current fiscal year.

Insider Buying and Selling

In other news, CEO Olivier Pomel sold 127,141 shares of Datadog stock in a transaction that occurred on 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 sale, the chief executive officer directly owned 612,747 shares in the company, valued at $175,680,692.37. This trade represents a 17.18% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Alexis Le-Quoc sold 53,912 shares of the business's stock in a transaction on Wednesday, July 8th. The stock was sold at an average price of $257.24, for a total transaction of $13,868,322.88. Following the completion of the sale, the chief technology officer directly owned 509,805 shares in the company, valued at approximately $131,142,238.20. This represents 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 have sold 1,077,367 shares of company stock valued at $260,947,004. Insiders own 6.48% of the company's stock.

Institutional Trading of Datadog

Large investors have recently added to or reduced their stakes in the company. JPL Wealth Management LLC bought a new position in Datadog during the third quarter worth about $27,000. EMC Capital Management acquired a new stake in Datadog during the second quarter worth about $28,000. Cornerstone Financial Management LLC increased its stake in Datadog by 54.9% in the second quarter. Cornerstone Financial Management LLC now owns 127 shares of the company's stock valued at $33,000 after acquiring an additional 45 shares during the last quarter. Rothschild Investment LLC raised its holdings in shares of Datadog by 52.5% during the 4th quarter. Rothschild Investment LLC now owns 273 shares of the company's stock worth $37,000 after buying an additional 94 shares in the last quarter. Finally, Annis Gardner Whiting Capital Advisors LLC raised its stake in Datadog by 341.7% during the first quarter. Annis Gardner Whiting Capital Advisors LLC now owns 318 shares of the company's stock worth $38,000 after acquiring an additional 246 shares in the last quarter. Institutional investors and hedge funds own 78.29% of the company's stock.

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.

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