Datadog, Inc. (NASDAQ:DDOG) Receives Average Recommendation of "Moderate Buy" from Analysts

Key Points

• Analysts remain bullish on Datadog: Forty-six brokerages give the stock a consensus “Moderate Buy” rating, with 38 buys and three strong buys. The average 12-month price target is $277.73, while several firms recently raised their targets to between $280 and $320.
• Datadog exceeded quarterly expectations: The company reported adjusted EPS of $0.65 versus $0.58 expected and revenue of $1.12 billion versus $1.08 billion forecast. Revenue increased 35.6% year over year, and management issued third-quarter and full-year 2026 EPS guidance.
• Insiders have been selling shares while institutions add exposure: Executives sold 958,076 shares worth about $232 million over the past 90 days through pre-arranged trading plans, while institutional investors own 78.29% of the stock and several major funds increased their positions.

Datadog, Inc. (NASDAQ:DDOG - Get Free Report) has been assigned a consensus recommendation of "Moderate Buy" from the forty-six brokerages that are currently covering the firm, Marketbeat reports. One equities research analyst has rated the stock with a sell recommendation, four have issued a hold recommendation, thirty-eight have issued a buy recommendation and three have issued a strong buy recommendation on the company. The average 12 month price objective among brokerages that have issued ratings on the stock in the last year is $277.73.

Several research firms have commented on DDOG. TD Cowen raised their target price on shares of Datadog from $260.00 to $300.00 and gave the company a "buy" rating in a research note on Wednesday, July 22nd. Canadian Imperial Bank of Commerce upped their price target on shares of Datadog from $250.00 to $280.00 and gave the stock an "outperform" rating in a research note on Wednesday, June 10th. Citigroup increased their price objective on shares of Datadog from $300.00 to $305.00 and gave the company a "buy" rating in a report on Friday, August 7th. KeyCorp raised their price objective on shares of Datadog from $225.00 to $320.00 and gave the company an "overweight" rating in a research note on Thursday, July 16th. Finally, BTIG Research boosted their target price on Datadog from $255.00 to $289.00 and gave the stock a "buy" rating in a report on Tuesday, July 28th.

Datadog Trading Up 0.7%

NASDAQ:DDOG opened at $278.24 on Wednesday. Datadog has a 1 year low of $98.01 and a 1 year high of $292.72. The stock has a market cap of $99.91 billion, a price-to-earnings ratio of 567.85, a PEG ratio of 26.98 and a beta of 1.51. The business has a fifty day moving average of $245.02 and a 200-day moving average of $213.50. The company has a debt-to-equity ratio of 0.23, a quick ratio of 3.20 and a current ratio of 3.20.

Datadog (NASDAQ:DDOG - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The company reported $0.65 EPS for the quarter, beating analysts' consensus estimates of $0.58 by $0.07. The company had revenue of $1.12 billion for 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 quarterly revenue was up 35.6% compared to the same quarter last year. During the same period last year, the company 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 predict that Datadog will post 0.7 earnings per share for the current year.

Insider Buying and Selling at Datadog

In other news, CFO David Obstler sold 40,000 shares of Datadog stock in a transaction on Monday, September 14th. The stock was sold at an average price of $227.47, for a total transaction of $9,098,800.00. Following the transaction, the chief financial officer directly owned 378,067 shares in the company, valued at approximately $85,998,900.49. This trade represents a 9.57% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed 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 business's stock in a transaction on Monday, August 10th. The stock was sold at an average price of $253.36, for a total value of $13,659,144.32. Following the completion of the sale, the chief technology officer directly owned 509,805 shares in the company, valued at $129,164,194.80. 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 sold 958,076 shares of company stock valued at $232,038,673. 6.48% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Datadog

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Janus Henderson Group PLC boosted its position 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. First Trust Advisors LP raised its holdings in shares of Datadog by 81.5% in the 1st quarter. First Trust Advisors LP now owns 3,685,562 shares of the company's stock worth $435,081,000 after purchasing an additional 1,654,429 shares in the last quarter. Bank of New York Mellon Corp raised its holdings 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 worth $312,340,000 after purchasing an additional 615,090 shares in the last quarter. Employees Provident Fund Board acquired a new stake in Datadog during the fourth quarter valued at approximately $251,582,000. Finally, Arrowstreet Capital Limited Partnership lifted its stake in Datadog by 162.2% during the first 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. 78.29% of the stock is currently owned by institutional investors.

About Datadog

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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