DA Davidson Forecasts Strong Price Appreciation for Datadog (NASDAQ:DDOG) Stock

Key Points

• DA Davidson has raised its target price for Datadog (NASDAQ:DDOG) from $170.00 to $180.00, suggesting an 18.76% potential upside from the current price.
• Datadog's quarterly earnings surpassed expectations, reporting $0.46 earnings per share on revenue of $826.76 million, marking a 28.1% increase year-over-year.
• The stock received a "buy" rating from 25 analysts, with a consensus target price of $156.69, indicating positive outlook from the investment community.

Datadog (NASDAQ:DDOG - Get Free Report) had its target price boosted by equities researchers at DA Davidson from $170.00 to $180.00 in a research note issued to investors on Friday,MarketScreener reports. The brokerage presently has a "buy" rating on the stock. DA Davidson's target price points to a potential upside of 18.76% from the company's current price.

A number of other equities research analysts have also issued reports on DDOG. Morgan Stanley upped their price target on Datadog from $115.00 to $165.00 and gave the company an "equal weight" rating in a research report on Thursday, July 10th. Mizuho boosted their price objective on Datadog from $145.00 to $155.00 and gave the stock an "outperform" rating in a research note on Friday, August 8th. UBS Group set a $165.00 target price on Datadog and gave the stock a "buy" rating in a research note on Thursday, August 7th. Needham & Company LLC reiterated a "buy" rating and set a $175.00 price target on shares of Datadog in a report on Thursday, August 14th. Finally, Wolfe Research raised shares of Datadog from a "peer perform" rating to an "outperform" rating and set a $150.00 price target on the stock in a research report on Thursday, June 12th. Twenty-five analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $156.69.

Datadog Trading Down 0.7%

Shares of DDOG opened at $151.57 on Friday. The firm's fifty day moving average is $136.55 and its two-hundred day moving average is $123.05. The stock has a market cap of $52.86 billion, a PE ratio of 433.07, a price-to-earnings-growth ratio of 59.74 and a beta of 1.21. The company has a quick ratio of 3.43, a current ratio of 3.43 and a debt-to-equity ratio of 0.31. Datadog has a 52-week low of $81.63 and a 52-week high of $170.08.

Datadog (NASDAQ:DDOG - Get Free Report) last posted its quarterly earnings results on Thursday, August 7th. The company reported $0.46 earnings per share for the quarter, topping analysts' consensus estimates of $0.41 by $0.05. Datadog had a net margin of 4.13% and a return on equity of 5.04%. The firm had revenue of $826.76 million for the quarter, compared to analyst estimates of $791.72 million. During the same period in the previous year, the business posted $0.43 earnings per share. Datadog's quarterly revenue was up 28.1% on a year-over-year basis. Datadog has set its Q3 2025 guidance at 0.440-0.460 EPS. FY 2025 guidance at 1.800-1.830 EPS. Research analysts forecast that Datadog will post 0.34 earnings per share for the current fiscal year.

Insider Transactions at Datadog

In related news, Director Amit Agarwal sold 44,444 shares of the stock in a transaction dated Monday, September 15th. The stock was sold at an average price of $138.34, for a total transaction of $6,148,382.96. Following the transaction, the director owned 1,640 shares of the company's stock, valued at approximately $226,877.60. This represents a 96.44% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CTO Alexis Le-Quoc sold 55,352 shares of the stock in a transaction dated Tuesday, September 2nd. The shares were sold at an average price of $133.83, for a total value of $7,407,758.16. Following the completion of the sale, the chief technology officer directly owned 438,885 shares in the company, valued at $58,735,979.55. This represents a 11.20% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 1,297,706 shares of company stock worth $170,365,427. 8.70% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Datadog

Several large investors have recently bought and sold shares of DDOG. Brighton Jones LLC acquired a new stake in shares of Datadog during the 4th quarter worth about $209,000. Bison Wealth LLC acquired a new stake in Datadog during the fourth quarter worth approximately $228,000. Wealth Enhancement Advisory Services LLC lifted its position in shares of Datadog by 32.0% during the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 15,506 shares of the company's stock worth $2,216,000 after buying an additional 3,760 shares during the last quarter. GAMMA Investing LLC boosted its holdings in shares of Datadog by 9,984.3% in the 1st quarter. GAMMA Investing LLC now owns 79,666 shares of the company's stock valued at $7,904,000 after buying an additional 78,876 shares in the last quarter. Finally, Merit Financial Group LLC grew its position in shares of Datadog by 228.8% in the 1st quarter. Merit Financial Group LLC now owns 7,898 shares of the company's stock valued at $784,000 after buying an additional 5,496 shares during the last quarter. Hedge funds and other institutional investors own 78.29% of the company's stock.

Datadog Company Profile

Datadog, Inc operates an observability and security platform for cloud applications in North America and internationally. The company's products comprise infrastructure and application performance monitoring, log management, digital experience monitoring, continuous profiler, database monitoring, data streams and universal service monitoring, network monitoring, incident management, workflow automation, observability pipelines, cloud cost and cloud security management, application security management, cloud SIEM, sensitive data scanner, and CI visibility.

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