Datadog (NASDAQ:DDOG) Shares Gap Up - Still a Buy?

Datadog, Inc. (NASDAQ:DDOG - Get Free Report) gapped up before the market opened on Thursday . The stock had previously closed at $135.01, but opened at $147.45. Datadog shares last traded at $151.59, with a volume of 10,454,199 shares trading hands.

Wall Street Analyst Weigh In

Several research firms have recently issued reports on DDOG. Royal Bank Of Canada reiterated an "outperform" rating and set a $119.00 price target on shares of Datadog in a research note on Wednesday, May 7th. Wells Fargo & Company reduced their target price on Datadog from $140.00 to $115.00 and set an "equal weight" rating for the company in a report on Wednesday, May 7th. Bank of America upped their target price on Datadog from $138.00 to $150.00 and gave the stock a "buy" rating in a research report on Wednesday, June 18th. Barclays increased their price target on Datadog from $125.00 to $128.00 and gave the company an "overweight" rating in a report on Tuesday, May 6th. Finally, UBS Group boosted their price objective on shares of Datadog from $125.00 to $140.00 and gave the stock a "buy" rating in a research note on Wednesday, June 11th. Six research analysts have rated the stock with a hold rating and twenty-five have issued a buy rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $143.03.

Datadog Price Performance

The company's 50 day moving average price is $118.92 and its 200 day moving average price is $121.10. The company has a debt-to-equity ratio of 0.34, a quick ratio of 2.74 and a current ratio of 2.74. The company has a market cap of $53.73 billion, a price-to-earnings ratio of 338.26, a P/E/G ratio of 74.69 and a beta of 1.03.

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

Insiders Place Their Bets

In other Datadog news, CTO Alexis Le-Quoc sold 127,105 shares of the business's stock in a transaction on Wednesday, May 7th. The stock was sold at an average price of $105.83, for a total value of $13,451,522.15. Following the transaction, the chief technology officer owned 466,535 shares of the company's stock, valued at approximately $49,373,399.05. The trade was a 21.41% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Olivier Pomel sold 107,365 shares of the firm's stock in a transaction on Monday, April 7th. The shares were sold at an average price of $87.33, for a total value of $9,376,185.45. Following the completion of the sale, the chief executive officer owned 563,598 shares of the company's stock, valued at approximately $49,219,013.34. This trade represents a 16.00% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 901,778 shares of company stock worth $103,817,113 over the last ninety days. 8.70% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in DDOG. Wealth Enhancement Advisory Services LLC lifted its position in shares of Datadog by 32.0% during the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 15,506 shares of the company's stock worth $2,216,000 after purchasing an additional 3,760 shares in the last quarter. Proficio Capital Partners LLC acquired a new stake in shares of Datadog in the fourth quarter valued at approximately $14,884,000. Cullen Frost Bankers Inc. raised its position in Datadog by 3.5% in the 4th quarter. Cullen Frost Bankers Inc. now owns 72,489 shares of the company's stock worth $10,358,000 after purchasing an additional 2,451 shares during the last quarter. Charles Schwab Investment Management Inc. lifted its holdings in Datadog by 6.6% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 1,254,538 shares of the company's stock worth $179,261,000 after buying an additional 77,961 shares in the last quarter. Finally, Berkshire Capital Holdings Inc. lifted its holdings in Datadog by 731,900.0% during the 4th quarter. Berkshire Capital Holdings Inc. now owns 73,200 shares of the company's stock worth $10,460,000 after buying an additional 73,190 shares in the last quarter. Institutional investors and hedge funds 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.