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

Key Points

• Datadog has a consensus analyst rating of “Moderate Buy” from 46 brokerages, with 38 buy ratings and an average 1-year price target of about $261.68.
• Recent analyst commentary remained bullish, with several firms raising price targets and citing continued strength in Datadog’s enterprise business, customer adoption, and AI-related growth opportunities.
• The company’s latest earnings beat expectations, with $0.60 EPS on $1.01 billion in revenue, and it also issued FY2026 guidance above many expectations; however, insiders have recently sold shares and the stock still trades at a rich valuation.

Datadog, Inc. (NASDAQ:DDOG - Get Free Report) has received a consensus recommendation of "Moderate Buy" from the forty-six brokerages that are presently covering the company, Marketbeat Ratings reports. One analyst has rated the stock with a sell rating, five have given a hold rating, thirty-eight have issued a buy rating and two have assigned a strong buy rating to the company. The average 1-year target price among brokerages that have covered the stock in the last year is $261.6818.

A number of research analysts recently weighed in on DDOG shares. CICC Research raised their price objective on Datadog from $150.00 to $204.00 in a research note on Monday, May 11th. Barclays upped their target price on Datadog from $260.00 to $290.00 and gave the stock an "overweight" rating in a research report on Tuesday. Evercore increased their price target on Datadog from $225.00 to $265.00 and gave the company an "outperform" rating in a report on Wednesday, June 10th. Needham & Company LLC lifted their price target on shares of Datadog from $225.00 to $260.00 and gave the company a "buy" rating in a research report on Thursday, June 25th. Finally, Royal Bank Of Canada restated an "outperform" rating and issued a $280.00 price objective on shares of Datadog in a research note on Thursday, July 16th.

Datadog News Summary

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Datadog’s enterprise business appears to be accelerating, with larger customer adoption, broader product usage and AI integrations supporting recurring revenue growth and deeper wallet share. DDOG's Enterprise Customer Expansion Accelerates: More Growth Ahead?
• Positive Sentiment: Several analysts reiterated bullish views or raised price targets, including Bank of America’s Buy rating, Oppenheimer’s higher target to $300, and Wells Fargo’s expectation that the stock can rise further. Bank of America Securities Sticks to Its Buy Rating for Datadog (DDOG)
• Positive Sentiment: Analysts still expect strong year-over-year earnings and revenue growth heading into the next report, which keeps the growth story intact despite recent volatility. Do Split Analyst Views On Datadog (DDOG) Reveal A Tension In Its Growth Narrative?
• Neutral Sentiment: Datadog is in focus ahead of earnings, with investors waiting for the company’s report to see whether growth can justify the premium valuation. Earnings preview: What to expect from Datadog's report
• Neutral Sentiment: Some valuation models suggest the stock is now fairly valued, with sales still looking expensive after a strong multi-year run. Datadog (DDOG) Stock Looks Fairly Valued With Sales Still Looking Rich
• Negative Sentiment: Recent insider selling, including a CTO share sale, may add caution around valuation and near-term sentiment. What Does the Datadog CTO's Sale of Company Shares Worth $11.5 Million Mean to Investors?
• Negative Sentiment: Despite the long-term rally, the stock has recently lagged the broader market at times, as investors question whether expectations have become too high. Datadog (DDOG) Stock Sinks As Market Gains: What You Should Know

Insider Transactions at Datadog

In other Datadog news, CTO Alexis Le-Quoc sold 53,912 shares of the business's stock in a transaction on Monday, June 1st. The shares were sold at an average price of $271.05, for a total transaction of $14,612,847.60. Following the completion of the transaction, the chief technology officer owned 531,311 shares of the company's stock, valued at $144,011,846.55. The trade was a 9.21% decrease in their position. The transaction was disclosed in a legal filing 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Olivier Pomel sold 127,141 shares of the business's stock in a transaction on Monday, May 11th. The stock was sold at an average price of $199.84, for a total transaction of $25,407,857.44. Following the transaction, the chief executive officer directly owned 835,679 shares of the company's stock, valued at approximately $167,002,091.36. This represents a 13.21% 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 ninety days, insiders have sold 1,396,309 shares of company stock worth $317,712,002. Corporate insiders own 6.48% of the company's stock.

Hedge Funds Weigh In On Datadog

Several large investors have recently made changes to their positions in DDOG. State Street Corp boosted its position in shares of Datadog by 106.8% in the third quarter. State Street Corp now owns 13,732,777 shares of the company's stock valued at $1,955,547,000 after acquiring an additional 7,091,075 shares during the period. Norges Bank bought a new position in Datadog during the fourth quarter worth $469,461,000. Jennison Associates LLC increased its position in 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 during the period. Invesco Ltd. increased its position in Datadog by 119.2% during the third quarter. Invesco Ltd. now owns 4,075,721 shares of the company's stock worth $580,383,000 after acquiring an additional 2,216,402 shares during the period. Finally, Employees Provident Fund Board acquired a new position in Datadog during the 4th quarter valued at $251,582,000. Institutional investors and hedge funds own 78.29% of the company's stock.

Datadog Trading Down 0.6%

Datadog stock opened at $244.39 on Friday. Datadog has a one year low of $98.01 and a one year high of $278.70. The company's fifty day moving average price is $240.62 and its two-hundred day moving average price is $168.00. The company has a debt-to-equity ratio of 0.25, a current ratio of 3.40 and a quick ratio of 3.40. The company has a market capitalization of $86.99 billion, a price-to-earnings ratio of 643.15, a PEG ratio of 24.99 and a beta of 1.54.

Datadog (NASDAQ:DDOG - Get Free Report) last announced its quarterly earnings results on Thursday, May 7th. The company reported $0.60 earnings per share for the quarter, topping analysts' consensus estimates of $0.51 by $0.09. The company had revenue of $1.01 billion during the quarter, compared to analysts' expectations of $960.12 million. Datadog had a return on equity of 4.83% and a net margin of 3.69%.The business's quarterly revenue was up 32.1% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.46 earnings per share. 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 forecast 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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