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

Key Points

• Datadog has a consensus analyst rating of “Moderate Buy”, with 44 firms covering the stock and an average 12-month price target of about $211.76.
• The company reported a beat-and-raise quarter, with Q1 revenue of $1.01 billion and EPS of $0.60, both above estimates, while also lifting FY 2026 and Q2 guidance.
• Following the results, multiple Wall Street firms raised price targets, reinforcing bullish sentiment; however, there were also notable insider share sales disclosed in recent filings.

Datadog, Inc. (NASDAQ:DDOG - Get Free Report) has been given an average recommendation of "Moderate Buy" by the forty-four ratings firms that are currently covering the stock, MarketBeat Ratings reports. Two research analysts have rated the stock with a sell recommendation, one has given a hold recommendation, forty have assigned a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1 year price target among brokers that have issued ratings on the stock in the last year is $211.7561.

DDOG has been the topic of several analyst reports. Wall Street Zen cut Datadog from a "buy" rating to a "hold" rating in a report on Saturday, January 17th. Royal Bank Of Canada lifted their price target on shares of Datadog from $161.00 to $219.00 and gave the company an "outperform" rating in a report on Friday. Mizuho lifted their price target on shares of Datadog from $145.00 to $220.00 and gave the company an "outperform" rating in a report on Friday. TD Cowen lifted their price target on shares of Datadog from $190.00 to $235.00 and gave the company a "buy" rating in a report on Thursday. Finally, Guggenheim lifted their target price on Datadog from $175.00 to $225.00 and gave the company a "buy" rating in a report on Thursday.

Key Stories Impacting Datadog

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Datadog delivered a beat-and-raise quarter, with Q1 revenue of about $1.01 billion and EPS of $0.60 both ahead of estimates, while management lifted FY 2026 and Q2 guidance well above consensus. Datadog Q1 2026 Financial Results
• Positive Sentiment: Several major Wall Street firms raised price targets after the results, including Citigroup, RBC, Piper Sandler, Wedbush, TD Cowen, Morgan Stanley, Mizuho, and others, reinforcing the bullish case and supporting the stock’s rally. Analyst price target hikes
• Positive Sentiment: Management highlighted strong demand across AI-native and non-AI customers, plus growth in larger customers and new product launches, which suggests the growth story is broadening beyond one-time earnings strength. RBC commentary on Datadog
• Neutral Sentiment: Heavy call-option buying and elevated trading volume indicate strong short-term momentum, but some of the move may be trader-driven and could increase volatility. Options activity report
• Negative Sentiment: Several insiders, including the CTO, general counsel, and a director, sold shares in pre-arranged 10b5-1 transactions, which may temper enthusiasm for some investors even though the sales were scheduled in advance. SEC filing for insider sale

Insiders Place Their Bets

In related news, CTO Alexis Le-Quoc sold 53,912 shares of Datadog stock in a transaction on Tuesday, March 10th. The stock was sold at an average price of $125.49, for a total value of $6,765,416.88. Following the transaction, the chief technology officer owned 437,257 shares in the company, valued at approximately $54,871,380.93. This trade represents a 10.98% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Olivier Pomel sold 68,922 shares of Datadog stock in a transaction on Monday, March 2nd. The shares were sold at an average price of $110.54, for a total value of $7,618,637.88. Following the completion of the transaction, the chief executive officer owned 704,821 shares in the company, valued at $77,910,913.34. The trade was a 8.91% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 654,018 shares of company stock worth $80,903,197 in the last quarter. 6.67% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the stock. Elevation Point Wealth Partners LLC raised its position in Datadog by 3.3% in the third quarter. Elevation Point Wealth Partners LLC now owns 1,697 shares of the company's stock valued at $242,000 after purchasing an additional 55 shares during the period. Chicago Partners Investment Group LLC raised its position in Datadog by 1.6% in the fourth quarter. Chicago Partners Investment Group LLC now owns 4,778 shares of the company's stock valued at $622,000 after purchasing an additional 73 shares during the period. Vivaldi Capital Management LP raised its position in Datadog by 2.8% in the third quarter. Vivaldi Capital Management LP now owns 2,689 shares of the company's stock valued at $383,000 after purchasing an additional 74 shares during the period. Westside Investment Management Inc. raised its position in Datadog by 74.3% in the third quarter. Westside Investment Management Inc. now owns 176 shares of the company's stock valued at $27,000 after purchasing an additional 75 shares during the period. Finally, Farther Finance Advisors LLC raised its position in Datadog by 2.0% in the fourth quarter. Farther Finance Advisors LLC now owns 3,892 shares of the company's stock valued at $529,000 after purchasing an additional 78 shares during the period. 78.29% of the stock is owned by hedge funds and other institutional investors.

Datadog Price Performance

DDOG stock opened at $200.16 on Friday. Datadog has a 52-week low of $98.01 and a 52-week high of $201.69. The stock's fifty day simple moving average is $124.41 and its 200-day simple moving average is $136.98. The company has a quick ratio of 3.38, a current ratio of 3.40 and a debt-to-equity ratio of 0.25. The stock has a market capitalization of $70.57 billion, a price-to-earnings ratio of 526.75, a price-to-earnings-growth ratio of 72.45 and a beta of 1.30.

Datadog (NASDAQ:DDOG - Get Free Report) last posted its quarterly earnings data on Thursday, May 7th. The company reported $0.60 earnings per share (EPS) for the quarter, topping 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 business had revenue of $1.01 billion for the quarter, compared to analysts' expectations of $960.12 million. During the same quarter last year, the firm earned $0.46 earnings per share. The business's revenue 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 research analysts expect that Datadog will post 0.32 EPS for the current 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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