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

Key Points

• Analysts remain broadly positive on Datadog: 39 of 45 covering firms rate the stock a “Buy,” with an overall “Moderate Buy” consensus and an average 12-month price target of approximately $276.66.
• Datadog exceeded quarterly expectations, reporting $0.65 in EPS versus the $0.58 estimate and $1.12 billion in revenue, up 35.6% year over year. However, the stock trades at a very high price-to-earnings ratio of about 451.
• Company insiders sold roughly $260.9 million worth of shares over the past 90 days, including significant sales by the CEO and CTO under pre-arranged trading plans; institutional investors hold 78.29% of the stock.

Shares of Datadog, Inc. (NASDAQ:DDOG - Get Free Report) have received a consensus rating of "Moderate Buy" from the forty-five ratings firms that are covering the company, Marketbeat Ratings reports. One research analyst has rated the stock with a sell rating, four have issued a hold rating, thirty-nine have assigned a buy rating and one has assigned a strong buy rating to the company. The average 1 year target price among brokers that have covered the stock in the last year is $276.6591.

Several equities analysts have issued reports on DDOG shares. Robert W. Baird set a $300.00 price objective on Datadog in a research report on Friday, August 7th. Arete Research increased their target price on Datadog from $260.00 to $340.00 and gave the stock a "buy" rating in a report on Tuesday, June 23rd. Bank of America raised their target price on Datadog from $260.00 to $280.00 and gave the company a "buy" rating in a research note on Monday, June 8th. Wolfe Research reiterated an "outperform" rating and set a $295.00 price target on shares of Datadog in a research report on Thursday, June 11th. Finally, Guggenheim increased their price objective on shares of Datadog from $225.00 to $300.00 and gave the stock a "buy" rating in a report on Wednesday, July 22nd.

Datadog Price Performance

NASDAQ:DDOG opened at $221.21 on Friday. The company has a quick ratio of 3.20, a current ratio of 3.20 and a debt-to-equity ratio of 0.23. The firm has a market cap of $79.43 billion, a PE ratio of 451.46, a price-to-earnings-growth ratio of 21.71 and a beta of 1.49. Datadog has a 12 month low of $98.01 and a 12 month high of $292.72. The company's 50-day moving average price is $245.59 and its two-hundred day moving average price is $196.67.

Datadog (NASDAQ:DDOG - Get Free Report) last posted its quarterly earnings data on Thursday, August 6th. The company reported $0.65 earnings per share for the quarter, topping the consensus estimate of $0.58 by $0.07. The company had revenue of $1.12 billion during 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%. The company's revenue was up 35.6% on a year-over-year basis. During the same quarter last year, the business posted $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. On average, equities analysts anticipate that Datadog will post 0.7 EPS for the current fiscal year.

Insider Buying and Selling at Datadog

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

Institutional Trading of Datadog

Several institutional investors and hedge funds have recently added to or reduced their stakes in DDOG. Brighton Jones LLC acquired a new stake in shares of Datadog during the 4th quarter worth approximately $209,000. Bison Wealth LLC acquired a new position in Datadog in the fourth quarter valued at approximately $228,000. Empowered Funds LLC boosted its stake in Datadog by 7.0% in the first quarter. Empowered Funds LLC now owns 10,313 shares of the company's stock valued at $1,023,000 after acquiring an additional 672 shares during the last quarter. Geneos Wealth Management Inc. boosted its stake in Datadog by 17.6% in the first quarter. Geneos Wealth Management Inc. now owns 769 shares of the company's stock valued at $76,000 after acquiring an additional 115 shares during the last quarter. Finally, Sivia Capital Partners LLC acquired a new stake in Datadog during the 2nd quarter worth $509,000. 78.29% of the stock is owned by institutional investors.

About Datadog

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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