Datadog (NASDAQ:DDOG) Shares Gap Down - Here's Why

Datadog, Inc. (NASDAQ:DDOG - Get Free Report)'s stock price gapped down prior to trading on Tuesday . The stock had previously closed at $152.41, but opened at $146.06. Datadog shares last traded at $146.88, with a volume of 6,551,587 shares trading hands.

Analyst Upgrades and Downgrades

A number of analysts have weighed in on the stock. Wells Fargo & Company cut their target price on shares of Datadog from $140.00 to $115.00 and set an "equal weight" rating on the stock in a research report on Wednesday, May 7th. Guggenheim reissued a "sell" rating and set a $105.00 target price on shares of Datadog in a research note on Tuesday. UBS Group lifted their price target on shares of Datadog from $125.00 to $140.00 and gave the company a "buy" rating in a research note on Wednesday, June 11th. Needham & Company LLC set a $140.00 target price on shares of Datadog and gave the stock a "buy" rating in a research report on Thursday, June 12th. Finally, Scotiabank set a $130.00 target price on shares of Datadog and gave the stock an "outperform" rating in a research report on Wednesday, May 7th. One investment analyst has rated the stock with a sell rating, five have given a hold rating and twenty-five have given a buy rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $142.60.

Datadog Stock Performance

The firm has a market capitalization of $50.55 billion, a P/E ratio of 318.22, a price-to-earnings-growth ratio of 85.83 and a beta of 1.03. The company has a current ratio of 2.74, a quick ratio of 2.74 and a debt-to-equity ratio of 0.34. The business's 50 day simple moving average is $121.01 and its two-hundred day simple moving average is $120.73.

Datadog (NASDAQ:DDOG - Get Free Report) last announced its quarterly earnings results on Tuesday, May 6th. The company reported $0.46 EPS for the quarter, topping analysts' consensus estimates of $0.42 by $0.04. Datadog had a net margin of 5.85% and a return on equity of 6.39%. The firm had revenue of $761.55 million during the quarter, compared to analyst estimates of $741.73 million. During the same period in the previous year, the business posted $0.44 earnings per share. The business's revenue for the quarter was up 24.6% on a year-over-year basis. Sell-side analysts anticipate that Datadog, Inc. will post 0.34 EPS for the current fiscal year.

Insider Buying and Selling at Datadog

In other Datadog news, CTO Alexis Le-Quoc sold 127,105 shares of the stock in a transaction dated Wednesday, May 7th. The shares were sold at an average price of $105.83, for a total transaction of $13,451,522.15. Following the completion of the sale, the chief technology officer directly owned 466,535 shares of the company's stock, valued at approximately $49,373,399.05. This represents a 21.41% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, CEO Olivier Pomel sold 107,365 shares of the stock in a transaction dated Monday, June 9th. The shares were sold at an average price of $121.71, for a total transaction of $13,067,394.15. Following the sale, the chief executive officer directly owned 548,715 shares of the company's stock, valued at approximately $66,784,102.65. The trade was a 16.36% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 794,413 shares of company stock valued at $94,440,927. Insiders own 8.70% of the company's stock.

Hedge Funds Weigh In On Datadog

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Farther Finance Advisors LLC increased its holdings in Datadog by 5.2% in the 4th quarter. Farther Finance Advisors LLC now owns 1,853 shares of the company's stock worth $265,000 after buying an additional 92 shares during the period. Emerald Advisers LLC increased its holdings in Datadog by 1.1% in the 1st quarter. Emerald Advisers LLC now owns 9,300 shares of the company's stock worth $923,000 after buying an additional 97 shares during the period. YANKCOM Partnership increased its holdings in Datadog by 12.0% in the 1st quarter. YANKCOM Partnership now owns 927 shares of the company's stock worth $92,000 after buying an additional 99 shares during the period. SageView Advisory Group LLC increased its holdings in Datadog by 4.9% in the 4th quarter. SageView Advisory Group LLC now owns 2,176 shares of the company's stock worth $311,000 after buying an additional 101 shares during the period. Finally, Covestor Ltd increased its holdings in Datadog by 8.9% in the 1st quarter. Covestor Ltd now owns 1,388 shares of the company's stock worth $138,000 after buying an additional 113 shares during the period. 78.29% of the stock is owned by hedge funds and other institutional investors.

Datadog Company Profile

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.

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