Datadog (NASDAQ:DDOG) Shares Up 7.7% Following Analyst Upgrade

Key Points

• Datadog shares rose 7.7% after Morgan Stanley raised its price target from $225 to $300 and reiterated an overweight rating.
• Analyst sentiment remains favorable, with Datadog receiving a consensus “Moderate Buy” rating and an average price target of $264.84; the company recently reported 32.1% year-over-year revenue growth and earnings above expectations.
• Despite strong institutional ownership and growth prospects, insider selling has been substantial, with insiders selling 1.49 million shares worth about $343 million over the past quarter, while the stock trades at an elevated valuation.

Datadog, Inc. (NASDAQ:DDOG - Get Free Report) shares traded up 7.7% on Wednesday after Morgan Stanley raised their price target on the stock from $225.00 to $300.00. Morgan Stanley currently has an overweight rating on the stock. Datadog traded as high as $269.82 and last traded at $270.2280. Approximately 2,593,413 shares traded hands during trading, a decline of 54% from the average daily volume of 5,582,832 shares. The stock had previously closed at $250.88.

Several other brokerages also recently issued reports on DDOG. Cantor Fitzgerald reiterated an "overweight" rating and set a $226.00 price target on shares of Datadog in a report on Thursday, June 11th. Canadian Imperial Bank of Commerce boosted their price target on Datadog from $250.00 to $280.00 and gave the stock an "outperform" rating in a report on Wednesday, June 10th. Rothschild & Co Redburn assumed coverage on Datadog in a research note on Thursday, April 23rd. They issued a "buy" rating and a $170.00 price objective for the company. Daiwa Securities Group raised their price objective on shares of Datadog from $190.00 to $240.00 and gave the company a "buy" rating in a report on Wednesday, May 13th. Finally, DA Davidson set a $250.00 target price on shares of Datadog in a research report on Friday, May 22nd. Two research analysts have rated the stock with a Strong Buy rating, thirty-nine have assigned a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Datadog currently has a consensus rating of "Moderate Buy" and an average price target of $264.84.

Insider Activity

In other news, CTO Alexis Le-Quoc sold 43,224 shares of the company's stock in a transaction on Monday, July 20th. The shares were sold at an average price of $265.23, for a total value of $11,464,301.52. Following the sale, the chief technology officer directly owned 509,805 shares of the company's stock, valued at approximately $135,215,580.15. This represents a 7.82% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Michael James Callahan sold 12,500 shares of the company's stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $267.47, for a total transaction of $3,343,375.00. Following the completion of the sale, the director directly owned 14,996 shares in the company, valued at approximately $4,010,980.12. This represents a 45.46% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 1,486,587 shares of company stock worth $342,962,652. 6.48% of the stock is owned by company insiders.

More Datadog News

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Datadog’s remaining performance obligations increased 51% to $3.48 billion, reflecting a larger contribution from multi-year contracts. The higher recurring commitment base could make revenue growth more predictable and supports confidence in the company’s 2026 outlook. Datadog multi-year contracts article
• Positive Sentiment: Analyst sentiment remains constructive. BTIG raised its price target to $289 from $255 while maintaining a Buy rating; other firms, including TD Cowen and Oppenheimer, have recently set targets near $300. Analysts cite stronger growth momentum, durable AI-related demand and the potential for another earnings beat. BTIG Datadog price target article
• Positive Sentiment: The company’s latest quarter showed revenue growth of approximately 32% year over year to just over $1 billion, with earnings exceeding consensus estimates. Continued expansion of Datadog’s AI and observability products, including its Adaptive ML acquisition, is reinforcing the long-term platform growth story. Datadog analyst optimism and earnings catalyst article
• Neutral Sentiment: Institutional positioning is mixed: 555 investors added DDOG shares in the latest reported quarter, while 498 reduced positions. BlackRock and Citadel were notable buyers, but FMR, T. Rowe Price and Massachusetts Financial Services made sizable reductions.
• Negative Sentiment: Insiders have reported extensive selling, with no purchases and 379 sales over the past six months. Recent CEO, CTO and director transactions were executed under pre-arranged Rule 10b5-1 plans, reducing their value as discretionary bearish signals, but the activity may still weigh on sentiment. The stock’s elevated valuation also leaves limited room for an earnings or outlook disappointment. Datadog insider selling article

Institutional Trading of Datadog

A number of large investors have recently bought and sold shares of DDOG. Elevation Wealth Partners LLC lifted its stake in shares of Datadog by 2,700.0% in the 2nd quarter. Elevation Wealth Partners LLC now owns 168 shares of the company's stock valued at $44,000 after purchasing an additional 162 shares during the period. JPL Wealth Management LLC acquired a new stake in Datadog during the third quarter worth approximately $27,000. CoreCap Advisors LLC increased its holdings in Datadog by 1,461.5% in 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 bought a new stake in Datadog in the fourth quarter worth approximately $31,000. Finally, NBC Securities Inc. lifted its stake in Datadog by 242.6% in the fourth quarter. NBC Securities Inc. now owns 233 shares of the company's stock valued at $32,000 after buying an additional 165 shares during the period. 78.29% of the stock is currently owned by institutional investors and hedge funds.

Datadog Stock Performance

The stock has a market capitalization of $96.33 billion, a price-to-earnings ratio of 710.62, a price-to-earnings-growth ratio of 25.61 and a beta of 1.54. The company has a 50 day simple moving average of $242.98 and a 200-day simple moving average of $170.38. The company has a quick ratio of 3.40, a current ratio of 3.40 and a debt-to-equity ratio of 0.25.

Datadog (NASDAQ:DDOG - Get Free Report) last posted its quarterly earnings results on Thursday, May 7th. The company reported $0.60 EPS for the quarter, topping analysts' consensus estimates of $0.51 by $0.09. The business had revenue of $1.01 billion during 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%. The business's quarterly revenue was up 32.1% on a year-over-year basis. During the same period last 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, equities research analysts expect that Datadog, Inc. will post 0.64 EPS for the current fiscal year.

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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