Datadog, Inc. (NASDAQ:DDOG) Sees Significant Growth in Short Interest

Key Points

• Datadog's short interest increased by 21.7% in August, totaling 13,220,000 shares, which constitutes approximately 4.2% of its overall shares outstanding.
• For the latest quarter, Datadog reported $826.76 million in revenue, exceeding estimates, along with an EPS of $0.46, beating expectations by $0.05.
• Analysts have given Datadog an overall rating of "Moderate Buy" with an average price target of $153.10, reflecting strong market sentiment towards the stock.

Datadog, Inc. (NASDAQ:DDOG - Get Free Report) saw a significant growth in short interest in the month of August. As of August 31st, there was short interest totaling 13,220,000 shares, a growth of 21.7% from the August 15th total of 10,860,000 shares. Currently, 4.2% of the company's stock are sold short. Based on an average daily trading volume, of 7,010,000 shares, the short-interest ratio is presently 1.9 days. Based on an average daily trading volume, of 7,010,000 shares, the short-interest ratio is presently 1.9 days. Currently, 4.2% of the company's stock are sold short.

Insider Transactions at Datadog

In other Datadog news, Director Matthew Jacobson sold 575,863 shares of the company's stock in a transaction that occurred on Tuesday, August 26th. The stock was sold at an average price of $126.96, for a total transaction of $73,111,566.48. Following the completion of the transaction, the director owned 219,831 shares of the company's stock, valued at $27,909,743.76. This represents a 72.37% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Olivier Pomel sold 100,754 shares of the firm's stock in a transaction that occurred on Wednesday, June 25th. The stock was sold at an average price of $131.88, for a total transaction of $13,287,437.52. Following the transaction, the chief executive officer directly owned 548,715 shares of the company's stock, valued at $72,364,534.20. This represents a 15.51% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 1,449,792 shares of company stock valued at $190,786,777 in the last ninety days. Corporate insiders own 8.70% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of DDOG. Goldman Sachs Group Inc. lifted its stake in shares of Datadog by 259.7% in the first quarter. Goldman Sachs Group Inc. now owns 8,658,340 shares of the company's stock valued at $858,994,000 after buying an additional 6,250,942 shares in the last quarter. Norges Bank bought a new stake in shares of Datadog during the second quarter worth about $347,728,000. Brown Advisory Inc. raised its holdings in shares of Datadog by 76.5% in the 1st quarter. Brown Advisory Inc. now owns 4,853,012 shares of the company's stock worth $481,467,000 after acquiring an additional 2,103,838 shares during the last quarter. Dragoneer Investment Group LLC lifted its position in Datadog by 729.5% in the 2nd quarter. Dragoneer Investment Group LLC now owns 2,254,563 shares of the company's stock valued at $302,855,000 after acquiring an additional 1,982,763 shares in the last quarter. Finally, Baillie Gifford & Co. boosted its stake in Datadog by 12.6% during the 1st quarter. Baillie Gifford & Co. now owns 12,274,655 shares of the company's stock valued at $1,217,769,000 after purchasing an additional 1,369,522 shares during the last quarter. 78.29% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

Several brokerages recently commented on DDOG. Needham & Company LLC restated a "buy" rating and set a $175.00 target price on shares of Datadog in a report on Thursday, August 14th. Bank of America boosted their price target on shares of Datadog from $150.00 to $175.00 and gave the stock a "buy" rating in a research report on Monday, July 7th. Wolfe Research upgraded Datadog from a "peer perform" rating to an "outperform" rating and set a $150.00 price objective for the company in a report on Thursday, June 12th. Stifel Nicolaus lifted their target price on Datadog from $120.00 to $135.00 and gave the company a "hold" rating in a research report on Thursday, June 26th. Finally, Guggenheim reiterated a "sell" rating and set a $105.00 target price on shares of Datadog in a report on Tuesday, July 8th. Twenty-four research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $153.10.

Datadog Price Performance

Shares of Datadog stock traded up $2.01 during midday trading on Friday, hitting $138.82. 10,122,450 shares of the company traded hands, compared to its average volume of 4,269,589. The firm's fifty day moving average price is $136.70 and its 200-day moving average price is $120.79. The stock has a market cap of $48.41 billion, a price-to-earnings ratio of 396.64, a PEG ratio of 54.96 and a beta of 1.10. Datadog has a 12 month low of $81.63 and a 12 month high of $170.08. The company has a debt-to-equity ratio of 0.31, a quick ratio of 3.43 and a current ratio of 3.43.

Datadog (NASDAQ:DDOG - Get Free Report) last issued its quarterly earnings data on Thursday, August 7th. The company reported $0.46 EPS for the quarter, beating the consensus estimate of $0.41 by $0.05. Datadog had a net margin of 4.13% and a return on equity of 5.04%. The business had revenue of $826.76 million during the quarter, compared to the consensus estimate of $791.72 million. During the same quarter in the prior year, the firm earned $0.43 EPS. The firm's revenue was up 28.1% compared to the same quarter last year. Datadog has set its Q3 2025 guidance at 0.440-0.460 EPS. FY 2025 guidance at 1.800-1.830 EPS. As a group, sell-side analysts forecast that Datadog will post 0.34 earnings per share for the current year.

About Datadog

Datadog, Inc operates an observability and security platform for cloud applications in North America and internationally. The company's products comprise infrastructure and application performance monitoring, log management, digital experience monitoring, continuous profiler, database monitoring, data streams and universal service monitoring, network monitoring, incident management, workflow automation, observability pipelines, cloud cost and cloud security management, application security management, cloud SIEM, sensitive data scanner, and CI visibility.