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

Key Points

• Analyst sentiment is moderately bullish: 38 of 45 brokerages rate Datadog a “buy,” two recommend “strong buy,” and the average 12-month price target is $276.32.
• Datadog exceeded quarterly expectations, reporting $0.65 EPS versus a $0.58 consensus estimate and $1.12 billion in revenue, up 35.6% year over year.
• Insiders sold roughly 1.47 million shares worth $363.4 million over the past three months, while institutional investors and hedge funds own 78.29% of the company.

Shares of Datadog, Inc. (NASDAQ:DDOG - Get Free Report) have received an average recommendation of "Moderate Buy" from the forty-five brokerages that are presently covering the stock, Marketbeat Ratings reports. One research analyst has rated the stock with a sell recommendation, four have issued a hold recommendation, thirty-eight have assigned a buy recommendation and two have given 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 $276.3182.

Several brokerages recently weighed in on DDOG. Weiss Ratings raised Datadog from a "sell (d+)" rating to a "hold (c)" rating in a research note on Wednesday, August 12th. Wolfe Research reaffirmed an "outperform" rating and set a $295.00 target price on shares of Datadog in a report on Thursday, June 11th. Canadian Imperial Bank of Commerce boosted their price objective on Datadog from $250.00 to $280.00 and gave the stock an "outperform" rating in a report on Wednesday, June 10th. Bank of America upped their price objective on shares of Datadog from $260.00 to $280.00 and gave the company a "buy" rating in a research note on Monday, June 8th. Finally, UBS Group decreased their target price on shares of Datadog from $315.00 to $280.00 and set a "buy" rating for the company in a report on Friday, August 7th.

Insider Buying and Selling at Datadog

In related news, Director Matthew Jacobson sold 19,512 shares of the company's stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $256.25, for a total value of $4,999,950.00. Following the completion of the sale, the director owned 524,708 shares in the company, valued at approximately $134,456,425. This represents a 3.59% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CTO Alexis Le-Quoc sold 53,912 shares of the company's stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $253.36, for a total transaction of $13,659,144.32. Following the completion of the sale, the chief technology officer owned 509,805 shares of the company's stock, valued at approximately $129,164,194.80. This trade represents a 9.56% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 1,465,134 shares of company stock valued at $363,421,509 over the last three months. 6.48% of the stock is owned by insiders.

Institutional Trading of Datadog

Several large investors have recently added to or reduced their stakes in the company. 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 worth $1,955,547,000 after buying an additional 7,091,075 shares during the period. Norges Bank acquired a new position in Datadog during the fourth quarter valued at $469,461,000. Jennison Associates LLC raised 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 valued at $1,036,787,000 after buying an additional 2,316,994 shares during the period. Invesco Ltd. lifted its stake in Datadog by 119.2% in the 3rd 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 in the last quarter. Finally, Employees Provident Fund Board purchased a new stake in Datadog in the 4th quarter worth about $251,582,000. 78.29% of the stock is owned by institutional investors and hedge funds.

Datadog Price Performance

Shares of NASDAQ:DDOG opened at $247.32 on Tuesday. The firm's 50 day moving average is $249.23 and its two-hundred day moving average is $183.38. The firm has a market capitalization of $88.81 billion, a P/E ratio of 504.74, a PEG ratio of 26.87 and a beta of 1.54. The company has a current ratio of 3.20, a quick ratio of 3.20 and a debt-to-equity ratio of 0.23. Datadog has a 52 week low of $98.01 and a 52 week high of $292.72.

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 business had revenue of $1.12 billion during the quarter, compared to the consensus estimate of $1.08 billion. Datadog had a net margin of 4.48% and a return on equity of 5.67%. The company's quarterly revenue was up 35.6% compared to the same quarter last year. During the same quarter in the prior year, the company 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. Analysts anticipate that Datadog will post 0.65 earnings per share for the current year.

About Datadog

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source