Datadog, Inc. (NASDAQ:DDOG) Given Average Rating of "Moderate Buy" by Brokerages

Key Points

• Wall Street sentiment is positive on Datadog, with 45 analysts giving it a consensus rating of “Moderate Buy” and an average 12-month price target of about $242.09.
• Recent earnings topped expectations, as Datadog reported EPS of $0.60 versus $0.51 expected and revenue of $1.01 billion, up 32.1% year over year.
• Insiders have been selling shares, including CEO Olivier Pomel and General Counsel Kerry Acocella, with insiders selling 1.46 million shares worth about $306.3 million over the last three months.

Datadog, Inc. (NASDAQ:DDOG - Get Free Report) has been assigned a consensus rating of "Moderate Buy" from the forty-five brokerages that are presently covering the firm, Marketbeat reports. One equities research analyst has rated the stock with a sell recommendation, two have issued a hold recommendation, forty-one have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12 month target price among brokers that have issued a report on the stock in the last year is $242.0909.

DDOG has been the topic of a number of research reports. Capital One Financial increased their price target on Datadog from $217.00 to $268.00 and gave the stock an "overweight" rating in a research report on Wednesday, June 17th. Rosenblatt Securities raised their price objective on Datadog from $178.00 to $220.00 and gave the stock a "buy" rating in a research note on Friday, May 8th. Wedbush initiated coverage on Datadog in a research note on Monday, June 15th. They set a "neutral" rating for the company. Arete Research raised their price objective on Datadog from $260.00 to $340.00 and gave the stock a "buy" rating in a research note on Tuesday, June 23rd. Finally, Barclays raised their price objective on Datadog from $215.00 to $260.00 and gave the stock an "overweight" rating in a research note on Wednesday, June 10th.

Insider Buying and Selling

In other news, CEO Olivier Pomel sold 84,698 shares of the stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $232.30, for a total value of $19,675,345.40. Following the completion of the sale, the chief executive officer owned 612,747 shares in the company, valued at $142,341,128.10. This represents a 12.14% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, General Counsel Kerry Acocella sold 5,371 shares of the stock in a transaction on Monday, June 15th. The shares were sold at an average price of $233.91, for a total value of $1,256,330.61. Following the completion of the sale, the general counsel owned 127,866 shares of the company's stock, valued at $29,909,136.06. The trade was a 4.03% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 1,455,364 shares of company stock valued at $306,341,930. 6.48% of the stock is currently owned by company insiders.

Institutional Trading of Datadog

A number of hedge funds have recently modified their holdings of the business. Price T Rowe Associates Inc. MD lifted its holdings in shares of Datadog by 7.1% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 14,423,814 shares of the company's stock valued at $1,961,496,000 after purchasing an additional 956,993 shares in the last quarter. State Street Corp raised its holdings in shares of Datadog by 106.8% during the third quarter. State Street Corp now owns 13,732,777 shares of the company's stock worth $1,955,547,000 after acquiring an additional 7,091,075 shares in the last quarter. Geode Capital Management LLC raised its holdings in shares of Datadog by 2.2% during the fourth quarter. Geode Capital Management LLC now owns 9,056,086 shares of the company's stock worth $1,227,184,000 after acquiring an additional 197,816 shares in the last quarter. Janus Henderson Group PLC raised its holdings in shares of Datadog by 22.8% during the first quarter. Janus Henderson Group PLC now owns 7,749,569 shares of the company's stock worth $905,570,000 after acquiring an additional 1,439,082 shares in the last quarter. Finally, Jennison Associates LLC raised its holdings in shares of Datadog by 43.7% during the fourth quarter. Jennison Associates LLC now owns 7,623,993 shares of the company's stock worth $1,036,787,000 after acquiring an additional 2,316,994 shares in the last quarter. Hedge funds and other institutional investors own 78.29% of the company's stock.

Datadog Stock Performance

Shares of NASDAQ DDOG opened at $239.77 on Monday. The stock's 50 day moving average price is $200.60 and its two-hundred day moving average price is $152.21. Datadog has a 52-week low of $98.01 and a 52-week high of $278.70. The stock has a market capitalization of $85.35 billion, a P/E ratio of 630.99, a PEG ratio of 24.38 and a beta of 1.56. The company has a quick ratio of 3.40, a current ratio of 3.40 and a debt-to-equity ratio of 0.25.

Datadog (NASDAQ:DDOG - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The company reported $0.60 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.51 by $0.09. Datadog had a return on equity of 4.83% and a net margin of 3.69%.The firm had revenue of $1.01 billion for the quarter, compared to analysts' expectations of $960.12 million. During the same quarter in the prior year, the firm posted $0.46 earnings per share. Datadog's revenue for the quarter was up 32.1% compared to the same quarter last year. Datadog has set its FY 2026 guidance at 2.360-2.440 EPS and its Q2 2026 guidance at 0.570-0.590 EPS. On average, analysts anticipate that Datadog will post 0.64 earnings per share for the current fiscal year.

Datadog Company Profile

Datadog NASDAQ: DDOG is a cloud-based monitoring and observability platform that helps organizations monitor, troubleshoot and secure their applications and infrastructure at scale. Its software-as-a-service offering collects and analyzes metrics, traces and logs from servers, containers, cloud services and applications to provide real-time visibility into system performance and health. Datadog's platform is widely used by engineering, operations and security teams to reduce downtime, accelerate incident response and improve application reliability.

The company's product suite includes infrastructure monitoring, application performance monitoring (APM), log management, real user monitoring (RUM), synthetic monitoring and network performance monitoring, along with security-focused products such as security monitoring and cloud SIEM.

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