Datadog (NASDAQ:DDOG) Price Target Raised to $240.00 at Daiwa Securities Group

Key Points

• Daiwa Securities Group raised its price target on Datadog from $190 to $240 and reiterated a buy rating, implying about 19% upside from the prior close.
• Datadog’s recent earnings beat expectations, with Q1 revenue of $1.01 billion and EPS of $0.60 both topping estimates; management also issued guidance above Wall Street expectations.
• Analyst sentiment remains broadly positive despite some mixed target changes, with the consensus rating at “Moderate Buy” and a consensus price target of $213.38.

Datadog (NASDAQ:DDOG - Get Free Report) had its price objective hoisted by research analysts at Daiwa Securities Group from $190.00 to $240.00 in a research note issued to investors on Wednesday,MarketScreener reports. The firm presently has a "buy" rating on the stock. Daiwa Securities Group's price objective would suggest a potential upside of 19.18% from the company's previous close.

A number of other equities analysts have also weighed in on DDOG. BNP Paribas Exane reduced their price objective on Datadog from $210.00 to $175.00 and set an "outperform" rating for the company in a research note on Thursday, January 15th. UBS Group raised their target price on Datadog from $195.00 to $220.00 and gave the stock a "buy" rating in a report on Friday. Barclays lifted their price target on Datadog from $148.00 to $215.00 and gave the company an "overweight" rating in a research report on Friday. Cantor Fitzgerald decreased their price target on Datadog from $220.00 to $150.00 and set an "overweight" rating for the company in a report on Friday, February 6th. Finally, Wolfe Research lowered their price objective on Datadog from $185.00 to $160.00 and set an "outperform" rating on the stock in a research report on Tuesday, February 10th. One analyst has rated the stock with a Strong Buy rating, forty have given a Buy rating, one has assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, Datadog has a consensus rating of "Moderate Buy" and a consensus target price of $213.38.

Datadog Stock Performance

DDOG traded up $1.44 during trading on Wednesday, reaching $201.38. 765,839 shares of the company's stock were exchanged, compared to its average volume of 5,875,880. 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 has a 1 year low of $98.01 and a 1 year high of $203.58. The company's fifty day simple moving average is $129.68 and its 200-day simple moving average is $137.93. The stock has a market capitalization of $71.00 billion, a P/E ratio of 527.95, a price-to-earnings-growth ratio of 69.99 and a beta of 1.30.

Datadog (NASDAQ:DDOG - Get Free Report) last released its quarterly earnings data on Thursday, May 7th. The company reported $0.60 EPS for the quarter, beating the consensus estimate of $0.51 by $0.09. Datadog had a net margin of 3.69% and a return on equity of 4.83%. The business had revenue of $1.01 billion for the quarter, compared to the consensus estimate of $960.12 million. During the same period in the prior year, the firm earned $0.46 EPS. The business'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. As a group, research analysts predict that Datadog will post 0.33 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, CRO Sean Michael Walters sold 7,657 shares of the firm's stock in a transaction dated Thursday, May 7th. The shares were sold at an average price of $188.50, for a total value of $1,443,344.50. Following the transaction, the executive directly owned 283,610 shares of the company's stock, valued at approximately $53,460,485. This trade represents a 2.63% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed 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 Datadog stock in a transaction dated Friday, May 8th. The stock was sold at an average price of $189.28, for a total value of $10,000,040.96. Following the completion of the sale, the director owned 622,726 shares in the company, valued at approximately $117,869,577.28. The trade was a 7.82% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 695,598 shares of company stock valued at $91,612,665. 6.48% of the stock is owned by company insiders.

Hedge Funds Weigh In On Datadog

A number of hedge funds have recently made changes to their positions in DDOG. Rothschild Investment LLC increased its position in shares of Datadog by 126.6% during the third quarter. Rothschild Investment LLC now owns 179 shares of the company's stock worth $25,000 after purchasing an additional 100 shares in the last quarter. Physician Wealth Advisors Inc. boosted its stake in Datadog by 315.2% during the 3rd quarter. Physician Wealth Advisors Inc. now owns 191 shares of the company's stock worth $27,000 after purchasing an additional 145 shares during the last quarter. Westside Investment Management Inc. grew its holdings in shares of Datadog by 74.3% during the third quarter. Westside Investment Management Inc. now owns 176 shares of the company's stock worth $27,000 after buying an additional 75 shares in the last quarter. JPL Wealth Management LLC acquired a new stake in shares of Datadog in the third quarter valued at about $27,000. Finally, Hazlett Burt & Watson Inc. acquired a new stake in shares of Datadog in the third quarter valued at about $28,000. Institutional investors and hedge funds own 78.29% of the company's stock.

Key Datadog News

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Datadog’s latest quarter topped expectations, with revenue up 32.1% year over year to $1.01 billion and EPS of $0.60 beating estimates, while management’s guidance also came in above Wall Street’s view. DDOG Q1 Deep Dive: AI Adoption and Product Expansion Drive Strong Growth
• Positive Sentiment: Analysts turned more constructive after earnings, including CICC Research raising its price target to $204 from $150 and other firms reiterating bullish ratings, reinforcing the view that DDOG still has upside. MarketScreener
• Positive Sentiment: Recent coverage continues to frame Datadog as an AI beneficiary and a “SaaS apocalypse” survivor, which is helping sentiment and supporting the stock’s re-rating. Barchart
• Neutral Sentiment: Datadog also announced upcoming presentations at investor conferences, which may keep the name in front of investors but is not a major fundamental catalyst by itself. Datadog to Present at Upcoming Investor Conference
• Negative Sentiment: Several insiders, including directors and a top executive, sold shares in recent days; while some were under pre-arranged 10b5-1 plans, the heavy insider selling may still weigh on sentiment. SEC filing

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.

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