Datadog (NASDAQ:DDOG) Earns Buy Rating from BTIG Research

Key Points

• BTIG Research reiterated a buy rating on Datadog and set a $255 price target, implying about 12% upside from the current share price.
• Datadog’s latest earnings beat expectations, with EPS of $0.60 versus the $0.51 consensus and revenue of $1.01 billion, up 32.1% year over year.
• Despite the bullish analyst sentiment, the stock has seen notable insider selling, including sales by CEO Olivier Pomel and Director Titilope Cole, which may temper investor enthusiasm.

Datadog (NASDAQ:DDOG - Get Free Report)'s stock had its "buy" rating restated by investment analysts at BTIG Research in a research report issued to clients and investors on Thursday,Benzinga reports. They presently have a $255.00 price target on the stock. BTIG Research's price objective points to a potential upside of 12.02% from the company's current price.

A number of other equities analysts have also recently commented on DDOG. Stifel Nicolaus set a $305.00 target price on Datadog in a report on Thursday, May 7th. Rothschild & Co Redburn started coverage on Datadog in a research report on Thursday, April 23rd. They issued a "buy" rating and a $170.00 price target for the company. DA Davidson set a $250.00 price target on Datadog in a research report on Friday, May 22nd. CICC Research upped their price target on Datadog from $150.00 to $204.00 in a research report on Monday, May 11th. Finally, Robert W. Baird set a $210.00 price target on Datadog in a research report on Friday, May 8th. One investment analyst has rated the stock with a Strong Buy rating, forty have given a Buy rating, one has issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $228.74.

Datadog Price Performance

Shares of Datadog stock opened at $227.63 on Thursday. The business has a 50 day simple moving average of $173.74 and a two-hundred day simple moving average of $146.26. Datadog has a 12 month low of $98.01 and a 12 month high of $278.70. The stock has a market capitalization of $81.03 billion, a P/E ratio of 599.04, a PEG ratio of 24.34 and a beta of 1.56. The company has a debt-to-equity ratio of 0.25, a current ratio of 3.40 and a quick ratio of 3.40.

Datadog (NASDAQ:DDOG - Get Free Report) last announced its earnings results on Thursday, May 7th. The company reported $0.60 EPS for the quarter, beating analysts' consensus estimates 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 during the quarter, compared to analysts' expectations of $960.12 million. During the same quarter in the prior year, the firm earned $0.46 earnings per share. The business's revenue was up 32.1% compared to the same quarter last year. Datadog has set its FY 2026 guidance at 2.360-2.440 EPS and its Q2 2026 guidance at 0.570-0.590 EPS. As a group, analysts predict that Datadog will post 0.61 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, Director Titilope Cole sold 5,131 shares of the stock in a transaction that occurred on Thursday, June 4th. The stock was sold at an average price of $247.87, for a total value of $1,271,820.97. Following the completion of the transaction, the director directly owned 1,216 shares in the company, valued at approximately $301,409.92. This represents a 80.84% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Olivier Pomel sold 127,141 shares of the firm's stock in a transaction on Monday, June 8th. The stock was sold at an average price of $231.69, for a total value of $29,457,298.29. Following the sale, the chief executive officer directly owned 612,747 shares of the company's stock, valued at approximately $141,967,352.43. This trade represents a 17.18% 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. Over the last ninety days, insiders sold 1,272,556 shares of company stock valued at $252,615,825. Insiders own 6.48% of the company's stock.

Institutional Investors Weigh In On Datadog

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Elevation Point Wealth Partners LLC increased its stake in Datadog by 3.3% during the third quarter. Elevation Point Wealth Partners LLC now owns 1,697 shares of the company's stock worth $242,000 after acquiring an additional 55 shares during the last quarter. Chicago Partners Investment Group LLC increased its stake in Datadog by 1.6% during the fourth quarter. Chicago Partners Investment Group LLC now owns 4,778 shares of the company's stock worth $622,000 after acquiring an additional 73 shares during the last quarter. Vivaldi Capital Management LP increased its stake in Datadog by 2.8% during the third quarter. Vivaldi Capital Management LP now owns 2,689 shares of the company's stock worth $383,000 after acquiring an additional 74 shares during the last quarter. State of Wyoming increased its stake in Datadog by 4.1% during the first quarter. State of Wyoming now owns 1,946 shares of the company's stock worth $230,000 after acquiring an additional 76 shares during the last quarter. Finally, Farther Finance Advisors LLC increased its stake in Datadog by 2.0% during the fourth quarter. Farther Finance Advisors LLC now owns 3,892 shares of the company's stock worth $529,000 after acquiring an additional 78 shares during the last quarter. Institutional investors and hedge funds own 78.29% of the company's stock.

More Datadog News

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Datadog unveiled 100+ new AI, observability and security capabilities at its DASH 2026 event, including major upgrades to Bits AI, AI Guard, Bring Your Own Cloud, Bits Agent Builder and Agent Console. Investors may view the launch as evidence that DDOG can deepen customer adoption and monetize AI demand. GlobeNewswire article
• Positive Sentiment: Several Wall Street firms turned more bullish after the product rollout, including CIBC raising its target to $280, Evercore lifting its target to $265, and RBC reaffirming an outperform view. Higher targets can reinforce the market’s growth narrative for DDOG. Yahoo Finance article
• Positive Sentiment: Coverage around Datadog’s “agentic AI” push says the company is winning more Wall Street support as analysts point to further upside from autonomous operations and AI security. Yahoo Finance article
• Neutral Sentiment: Datadog’s latest products strengthen its long-term growth story, but the stock’s rich valuation means investors may be weighing execution risk against strong revenue growth and an already elevated multiple. Yahoo Finance article
• Negative Sentiment: CFO David Obstler sold 75,000 shares in a pre-arranged 10b5-1 plan, a move that can weigh on sentiment when investors are already watching insider behavior closely. SEC filing
• Negative Sentiment: CEO Olivier Pomel also sold 127,141 shares under a 10b5-1 plan, adding to a broader pattern of insider sales that may make some investors cautious after the stock’s strong run. SEC filing

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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