Datadog (NASDAQ:DDOG) Coverage Initiated by Analysts at Wells Fargo & Company

Key Points

• Datadog has been upgraded to a "strong-buy" rating by Wells Fargo & Company, indicating strong confidence in the company's performance.
• Several analysts have raised their target prices for Datadog stock, with the average price target now at $156.00.
• Datadog's most recent earnings report showed an earnings per share of $0.46, surpassing the consensus estimate and reflecting a year-over-year revenue increase of 28.1%.

Research analysts at Wells Fargo & Company began coverage on shares of Datadog (NASDAQ:DDOG - Get Free Report) in a note issued to investors on Tuesday, MarketBeat reports. The firm set an "overweight" rating on the stock.

A number of other brokerages have also weighed in on DDOG. DA Davidson set a $160.00 price objective on Datadog and gave the company a "buy" rating in a research note on Tuesday, August 5th. Scotiabank reiterated an "outperform" rating on shares of Datadog in a research report on Friday, August 8th. Barclays set a $170.00 target price on Datadog and gave the stock an "overweight" rating in a research report on Thursday, August 7th. Needham & Company LLC reiterated a "buy" rating and issued a $175.00 target price on shares of Datadog in a research report on Thursday, August 14th. Finally, Bank of America boosted their price objective on Datadog from $150.00 to $175.00 and gave the company a "buy" rating in a research report on Monday, July 7th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-four have issued a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, Datadog currently has an average rating of "Moderate Buy" and an average target price of $156.00.

Datadog Stock Performance

Shares of NASDAQ:DDOG opened at $152.70 on Tuesday. The company has a market cap of $53.25 billion, a P/E ratio of 436.30, a PEG ratio of 55.71 and a beta of 1.21. 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 has a one year low of $81.63 and a one year high of $170.08. The business's 50-day simple moving average is $136.45 and its 200 day simple moving average is $122.72.

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

Insider Transactions at Datadog

In other news, Director Amit Agarwal sold 44,444 shares of the company's stock in a transaction on Monday, September 15th. The shares were sold at an average price of $138.34, for a total transaction of $6,148,382.96. Following the completion of the transaction, the director directly owned 1,640 shares in the company, valued at approximately $226,877.60. This represents a 96.44% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CTO Alexis Le-Quoc sold 55,352 shares of the business's stock in a transaction on Tuesday, September 2nd. The stock was sold at an average price of $133.83, for a total transaction of $7,407,758.16. Following the completion of the sale, the chief technology officer directly owned 438,885 shares in the company, valued at approximately $58,735,979.55. This represents a 11.20% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 1,297,706 shares of company stock worth $170,365,427. Corporate insiders own 8.70% of the company's stock.

Institutional Trading of Datadog

A number of institutional investors have recently bought and sold shares of DDOG. Costello Asset Management INC acquired a new stake in shares of Datadog in the 1st quarter valued at about $30,000. Cornerstone Planning Group LLC raised its holdings in shares of Datadog by 96.9% in the 1st quarter. Cornerstone Planning Group LLC now owns 313 shares of the company's stock worth $30,000 after acquiring an additional 154 shares during the last quarter. Interchange Capital Partners LLC acquired a new stake in shares of Datadog in the 2nd quarter worth about $42,000. Opal Wealth Advisors LLC acquired a new stake in shares of Datadog in the 1st quarter worth about $37,000. Finally, Center for Financial Planning Inc. raised its holdings in shares of Datadog by 1,189.7% in the 1st quarter. Center for Financial Planning Inc. now owns 374 shares of the company's stock worth $37,000 after acquiring an additional 345 shares during the last quarter. Institutional investors own 78.29% of the company's stock.

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.