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

Key Points

• Datadog has a consensus analyst rating of “Moderate Buy”, with 40 of 44 covering firms calling it a buy or strong buy. The average 12-month price target is about $219.69.
• The company’s latest quarterly results beat expectations, with EPS of $0.60 versus the $0.51 estimate and revenue of $1.01 billion above forecasts; revenue also rose 32.1% year over year.
• Insiders have been selling shares recently, including CEO Olivier Pomel and Director Matthew Jacobson, while institutional ownership remains high at 78.29% of the stock.

Datadog, Inc. (NASDAQ:DDOG - Get Free Report) has been assigned a consensus recommendation of "Moderate Buy" from the forty-four ratings firms that are presently covering the firm, Marketbeat Ratings reports. Two investment analysts have rated the stock with a sell recommendation, one has given a hold recommendation, forty have assigned a buy recommendation and one has given a strong buy recommendation to the company. The average twelve-month price target among analysts that have issued ratings on the stock in the last year is $219.6905.

A number of research analysts have recently issued reports on the stock. Evercore restated an "outperform" rating and issued a $225.00 price target on shares of Datadog in a research report on Thursday, May 7th. BTIG Research raised their price target on shares of Datadog from $212.00 to $255.00 and gave the stock a "buy" rating in a research report on Tuesday, May 26th. Needham & Company LLC raised their target price on Datadog from $155.00 to $225.00 and gave the company a "buy" rating in a research note on Friday, May 8th. Weiss Ratings reiterated a "sell (d+)" rating on shares of Datadog in a research note on Monday, April 20th. Finally, Citigroup raised their target price on Datadog from $175.00 to $218.00 and gave the company a "buy" rating in a research note on Friday, May 8th.

Datadog Stock Down 7.0%

Shares of NASDAQ:DDOG opened at $250.33 on Thursday. The company's fifty day moving average is $162.46 and its two-hundred day moving average is $144.24. The company has a debt-to-equity ratio of 0.25, a quick ratio of 3.40 and a current ratio of 3.40. Datadog has a 1-year low of $98.01 and a 1-year high of $278.70. The stock has a market capitalization of $89.11 billion, a price-to-earnings ratio of 658.78, a price-to-earnings-growth ratio of 28.82 and a beta of 1.56.

Datadog (NASDAQ:DDOG - Get Free Report) last posted its quarterly earnings results on Thursday, May 7th. The company reported $0.60 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.51 by $0.09. Datadog had a net margin of 3.69% and a return on equity of 4.83%. The company had revenue of $1.01 billion for the quarter, compared to the consensus estimate of $960.12 million. During the same period last year, the firm posted $0.46 EPS. The company's revenue for the quarter was up 32.1% on a year-over-year basis. Datadog has set its FY 2026 guidance at 2.360-2.440 EPS and its Q2 2026 guidance at 0.570-0.590 EPS. Equities analysts anticipate that Datadog will post 0.61 EPS for the current year.

Insiders Place Their Bets

In related news, CEO Olivier Pomel sold 84,698 shares of the stock in a transaction dated Tuesday, May 26th. The shares were sold at an average price of $223.58, for a total value of $18,936,778.84. Following the sale, the chief executive officer owned 750,981 shares of the company's stock, valued at $167,904,331.98. This trade represents a 10.14% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Matthew Jacobson sold 52,832 shares of the stock in a transaction dated Friday, May 8th. The stock was sold at an average price of $189.28, for a total transaction of $10,000,040.96. Following the completion of the sale, the director directly owned 622,726 shares in the company, valued at approximately $117,869,577.28. This trade represents a 7.82% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 923,616 shares of company stock worth $155,773,338. 6.48% of the stock is owned by company insiders.

Institutional Trading of Datadog

A number of large investors have recently modified their holdings of the company. Vanguard Group Inc. increased its holdings in shares of Datadog by 30.3% in the 3rd quarter. Vanguard Group Inc. now owns 41,902,227 shares of the company's stock worth $5,966,877,000 after acquiring an additional 9,748,738 shares during the period. Price T Rowe Associates Inc. MD grew its position in Datadog by 7.1% in the 4th 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 buying an additional 956,993 shares in the last quarter. State Street Corp grew its position in Datadog by 106.8% in the 3rd quarter. State Street Corp now owns 13,732,777 shares of the company's stock valued at $1,955,547,000 after buying an additional 7,091,075 shares in the last quarter. Geode Capital Management LLC grew its position in Datadog by 2.2% in the 4th quarter. Geode Capital Management LLC now owns 9,056,086 shares of the company's stock valued at $1,227,184,000 after buying an additional 197,816 shares in the last quarter. Finally, Janus Henderson Group PLC grew its position in Datadog by 22.8% in the 1st quarter. Janus Henderson Group PLC now owns 7,749,569 shares of the company's stock valued at $905,570,000 after buying an additional 1,439,082 shares in the last quarter. Institutional investors and hedge funds own 78.29% of the company's stock.

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.

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.