Datadog (NASDAQ:DDOG) Receives "Outperform" Rating from Royal Bank Of Canada

Key Points

• Royal Bank of Canada reiterated its Outperform rating on Datadog and set a $250 price target, implying about 8.36% upside from the prior close. Other brokerages were also mostly bullish, with Datadog carrying a consensus Moderate Buy rating.
• Datadog shares were up 1.5% in Wednesday trading, reaching $230.71. The stock has traded between a 52-week low of $98.01 and a high of $278.70.
• The company reported better-than-expected quarterly results, with EPS of $0.60 versus estimates of $0.51 and revenue of $1.01 billion versus expectations of $960.12 million. Revenue rose 32.1% year over year, while insiders recently sold shares and institutional ownership remained high.

Datadog (NASDAQ:DDOG - Get Free Report)'s stock had its "outperform" rating reiterated by research analysts at Royal Bank Of Canada in a research report issued to clients and investors on Wednesday,Benzinga reports. They presently have a $250.00 price objective on the stock. Royal Bank Of Canada's price target indicates a potential upside of 8.36% from the company's previous close.

A number of other brokerages have also issued reports on DDOG. Guggenheim boosted their target price on Datadog from $175.00 to $225.00 and gave the company a "buy" rating in a research report on Thursday, May 7th. CICC Research raised their price target on Datadog from $150.00 to $204.00 in a research report on Monday, May 11th. Barclays reiterated an "overweight" rating and issued a $260.00 price objective (up from $215.00) on shares of Datadog in a report on Wednesday. Robert W. Baird set a $210.00 target price on Datadog in a research note on Friday, May 8th. Finally, BMO Capital Markets raised their target price on Datadog from $165.00 to $220.00 and gave the company an "outperform" rating in a report on Friday, May 8th. One analyst has rated the stock with a Strong Buy rating, forty have issued 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, Datadog presently has an average rating of "Moderate Buy" and an average price target of $223.86.

Datadog Trading Up 1.5%

Shares of NASDAQ:DDOG traded up $3.37 during midday trading on Wednesday, reaching $230.71. 678,794 shares of the company's stock were exchanged, compared to its average volume of 5,938,947. The firm's 50 day simple moving average is $171.50 and its two-hundred day simple moving average is $145.78. The company has a debt-to-equity ratio of 0.25, a current ratio of 3.40 and a quick ratio of 3.40. The stock has a market cap of $82.12 billion, a price-to-earnings ratio of 605.39, a P/E/G ratio of 24.81 and a beta of 1.56. Datadog has a fifty-two week low of $98.01 and a fifty-two week high of $278.70.

Datadog (NASDAQ:DDOG - Get Free Report) last posted 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. The company had revenue of $1.01 billion for the quarter, compared to analysts' expectations of $960.12 million. Datadog had a net margin of 3.69% and a return on equity of 4.83%. Datadog's revenue for the quarter was up 32.1% compared to the same quarter last year. During the same quarter in the prior year, the company 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 forecast that Datadog will post 0.61 EPS for the current fiscal year.

Insider Transactions at Datadog

In related news, Director Dev Ittycheria sold 120,000 shares of Datadog stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $248.78, for a total value of $29,853,600.00. Following the completion of the transaction, the director owned 39,235 shares in the company, valued at $9,760,883.30. The trade was a 75.36% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CTO Alexis Le-Quoc sold 21,506 shares of the business's stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $267.15, for a total transaction of $5,745,327.90. Following the transaction, the chief technology officer owned 509,805 shares of the company's stock, valued at $136,194,405.75. This trade represents a 4.05% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 1,070,415 shares of company stock valued at $205,781,777 over the last quarter. Insiders own 6.48% of the company's stock.

Hedge Funds Weigh In On Datadog

Several large investors have recently bought and sold shares of the business. Vanguard Group Inc. boosted its position in shares of Datadog by 30.3% during the 3rd quarter. Vanguard Group Inc. now owns 41,902,227 shares of the company's stock worth $5,966,877,000 after acquiring an additional 9,748,738 shares in the last quarter. Price T Rowe Associates Inc. MD raised its position in shares of Datadog by 7.1% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 14,423,814 shares of the company's stock worth $1,961,496,000 after acquiring an additional 956,993 shares in the last quarter. State Street Corp raised its position in shares of Datadog by 106.8% during the 3rd quarter. State Street Corp now owns 13,732,777 shares of the company's stock worth $1,955,547,000 after acquiring an additional 7,091,075 shares in the last quarter. Geode Capital Management LLC lifted its stake in Datadog by 2.2% during the fourth quarter. Geode Capital Management LLC now owns 9,056,086 shares of the company's stock worth $1,227,184,000 after purchasing an additional 197,816 shares during the last quarter. Finally, Janus Henderson Group PLC lifted its stake in Datadog by 22.8% during the first quarter. Janus Henderson Group PLC now owns 7,749,569 shares of the company's stock worth $905,570,000 after purchasing an additional 1,439,082 shares during the last quarter. Hedge funds and other institutional investors own 78.29% of the company's stock.

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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