Datadog (NASDAQ:DDOG) Price Target Raised to $275.00

Key Points

• Scotiabank raised its price target on Datadog from $225 to $275, implying about 25.8% upside from the prior close. The move comes amid broader bullish analyst sentiment on the stock.
• Datadog reported better-than-expected quarterly results, with EPS of $0.60 versus $0.51 expected and revenue of $1.01 billion versus $960.1 million estimated. Revenue rose 32.1% year over year.
• Insiders have been selling shares, including recent transactions by the CRO and a director, while institutional investors continue to hold the majority of the stock. Datadog remains heavily followed by analysts, with a consensus rating of “Moderate Buy.”

Datadog (NASDAQ:DDOG - Get Free Report) had its price target raised by investment analysts at Scotiabank from $225.00 to $275.00 in a research note issued on Thursday,MarketScreener reports. Scotiabank's target price indicates a potential upside of 25.81% from the stock's previous close.

A number of other research analysts have also weighed in on the company. CICC Research increased their price objective on Datadog from $150.00 to $204.00 in a report on Monday, May 11th. Rosenblatt Securities lifted their target price on Datadog from $178.00 to $220.00 and gave the stock a "buy" rating in a report on Friday, May 8th. KeyCorp upgraded shares of Datadog from an "overweight" rating to an "overweight" rating in a report on Monday. Monness Crespi & Hardt raised their price target on shares of Datadog from $255.00 to $270.00 in a research report on Thursday, May 7th. Finally, Piper Sandler restated an "overweight" rating and set a $275.00 price objective (up from $230.00) on shares of Datadog in a research note on Wednesday, June 10th. One investment analyst has rated the stock with a Strong Buy rating, forty-one have issued a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $239.48.

Datadog Stock Performance

DDOG stock traded down $8.04 during trading on Thursday, reaching $218.59. The company had a trading volume of 1,231,670 shares, compared to its average volume of 5,868,835. The company has a market cap of $77.81 billion, a price-to-earnings ratio of 574.77, a price-to-earnings-growth ratio of 24.75 and a beta of 1.56. Datadog has a twelve month low of $98.01 and a twelve month high of $278.70. The company has a debt-to-equity ratio of 0.25, a quick ratio of 3.40 and a current ratio of 3.40. The firm has a 50-day simple moving average of $184.96 and a 200-day simple moving average of $148.81.

Datadog (NASDAQ:DDOG - Get Free Report) last posted its quarterly earnings data on Thursday, May 7th. The company reported $0.60 EPS for the quarter, topping the consensus estimate of $0.51 by $0.09. The business had revenue of $1.01 billion during the quarter, compared to the consensus estimate of $960.12 million. Datadog had a net margin of 3.69% and a return on equity of 4.83%. The business's revenue for the quarter was up 32.1% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.46 earnings per share. 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, sell-side analysts expect that Datadog will post 0.61 earnings per share for the current year.

Insider Activity

In related news, CRO Sean Michael Walters sold 11,876 shares of Datadog stock in a transaction dated Thursday, June 11th. The stock was sold at an average price of $231.02, for a total value of $2,743,593.52. Following the completion of the transaction, the executive owned 258,420 shares in the company, valued at $59,700,188.40. The trade was a 4.39% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Michael James Callahan sold 112,500 shares of the stock in a transaction that occurred on Friday, June 12th. The stock was sold at an average price of $231.60, for a total value of $26,055,000.00. Following the transaction, the director owned 14,996 shares in the company, valued at $3,473,073.60. This represents a 88.24% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 1,359,860 shares of company stock valued at $279,385,577 in the last three months. Corporate insiders own 6.48% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Rothschild Investment LLC increased its holdings in Datadog by 126.6% in the 3rd quarter. Rothschild Investment LLC now owns 179 shares of the company's stock worth $25,000 after acquiring an additional 100 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. CoreCap Advisors LLC increased its stake in shares of Datadog by 1,461.5% during the fourth quarter. CoreCap Advisors LLC now owns 203 shares of the company's stock worth $28,000 after purchasing an additional 190 shares in the last quarter. Flagship Harbor Advisors LLC purchased a new stake in shares of Datadog during the fourth quarter worth about $31,000. Finally, NBC Securities Inc. raised its position in shares of Datadog by 242.6% during the 4th quarter. NBC Securities Inc. now owns 233 shares of the company's stock worth $32,000 after purchasing an additional 165 shares during the last quarter. Hedge funds and other institutional investors own 78.29% of the company's stock.

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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