Datadog (NASDAQ:DDOG) Stock Price Expected to Rise, Raymond James Financial Analyst Says

Key Points

• Raymond James raised its price target on Datadog to $220 (about a 15% upside), joining multiple firms that lifted targets; the Street average target is $206.83 with a consensus rating of "Moderate Buy".
• Datadog beat Q1 estimates — revenue ~$1.01B (+32% YoY) and EPS $0.60 — and materially raised Q2 and FY‑2026 guidance (Q2: $0.57–$0.59; FY‑2026: $2.36–$2.44), which spurred analyst upgrades and the recent rally.
• Risk remains: valuation is extended with a very high forward P/E, and significant insider selling has occurred, raising the possibility of short‑term profit taking despite the momentum.

Datadog (NASDAQ:DDOG - Get Free Report) had its price target hoisted by equities researchers at Raymond James Financial from $170.00 to $220.00 in a report issued on Thursday,MarketScreener reports. Raymond James Financial's price target indicates a potential upside of 14.99% from the stock's previous close.

Several other analysts also recently commented on the stock. Truist Financial raised their target price on shares of Datadog from $120.00 to $190.00 and gave the stock a "hold" rating in a report on Thursday. Robert W. Baird set a $180.00 target price on shares of Datadog in a research note on Wednesday, February 11th. Canadian Imperial Bank of Commerce lowered their target price on Datadog from $240.00 to $215.00 and set an "outperformer" rating for the company in a report on Monday, April 20th. Sanford C. Bernstein dropped their price target on Datadog from $180.00 to $167.00 and set an "outperform" rating on the stock in a research note on Wednesday, April 22nd. Finally, KeyCorp upped their price objective on Datadog from $155.00 to $225.00 and gave the stock an "overweight" rating in a research report on Friday. One investment analyst has rated the stock with a Strong Buy rating, forty have issued a Buy rating, one has given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $206.83.

Datadog Trading Up 1.4%

Datadog stock traded up $2.60 during mid-day trading on Thursday, hitting $191.33. 4,105,187 shares of the company's stock were exchanged, compared to its average volume of 5,828,224. The firm has a market capitalization of $67.46 billion, a P/E ratio of 615.45, a PEG ratio of 52.02 and a beta of 1.30. Datadog has a fifty-two week low of $98.01 and a fifty-two week high of $201.69. The company has a quick ratio of 3.38, a current ratio of 3.38 and a debt-to-equity ratio of 0.26. The company's 50 day simple moving average is $124.41 and its 200-day simple moving average is $136.98.

Datadog (NASDAQ:DDOG - Get Free Report) last posted its earnings results on Thursday, May 7th. The company reported $0.60 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.51 by $0.09. The firm had revenue of $1.01 billion during the quarter, compared to analysts' expectations of $960.12 million. Datadog had a return on equity of 4.14% and a net margin of 3.14%.The company's revenue was up 32.1% on a year-over-year basis. During the same period in the previous year, the firm earned $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. On average, equities analysts anticipate that Datadog will post 0.32 earnings per share for the current year.

Insider Activity

In other Datadog news, CEO Olivier Pomel sold 68,922 shares of the firm's stock in a transaction that occurred on Monday, March 2nd. The stock was sold at an average price of $110.54, for a total value of $7,618,637.88. Following the completion of the transaction, the chief executive officer directly owned 704,821 shares in the company, valued at $77,910,913.34. This trade represents a 8.91% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CTO Alexis Le-Quoc sold 53,912 shares of the business's stock in a transaction dated Tuesday, March 10th. The stock was sold at an average price of $125.49, for a total transaction of $6,765,416.88. Following the transaction, the chief technology officer owned 437,257 shares in the company, valued at $54,871,380.93. This represents a 10.98% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 654,018 shares of company stock valued at $80,903,197 in the last 90 days. 6.67% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Datadog

Several hedge funds and other institutional investors have recently added to or reduced their stakes in DDOG. Westside Investment Management Inc. boosted its stake in shares of Datadog by 74.3% during the third quarter. Westside Investment Management Inc. now owns 176 shares of the company's stock valued at $27,000 after purchasing an additional 75 shares in the last quarter. Rothschild Investment LLC raised its holdings in shares of Datadog by 126.6% in the 3rd quarter. Rothschild Investment LLC now owns 179 shares of the company's stock worth $25,000 after acquiring an additional 100 shares during the last quarter. Physician Wealth Advisors Inc. lifted its position in Datadog by 315.2% in the 3rd quarter. Physician Wealth Advisors Inc. now owns 191 shares of the company's stock valued at $27,000 after acquiring an additional 145 shares in the last quarter. JPL Wealth Management LLC acquired a new position in Datadog during the 3rd quarter valued at about $27,000. Finally, Hazlett Burt & Watson Inc. purchased a new stake in shares of Datadog in the third quarter worth approximately $28,000. 78.29% of the stock is owned by institutional investors and hedge funds.

Key Datadog News

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Q1 beat and cash‑flow strength — Revenue ≈ $1.01B (+~32% YoY) and EPS $0.60 topped estimates; management reported strong operating and free cash flow and cited expansion in $100k+ ARR customers. Q1 2026 Results
• Positive Sentiment: Guidance materially raised — Q2 EPS $0.57–$0.59 and FY‑2026 EPS $2.36–$2.44 well above consensus, the primary catalyst cited by traders and analysts. Guidance raise
• Positive Sentiment: Analyst re‑ratings and price‑target lifts amplified flows — multiple firms (e.g., Wedbush, BTIG, Citizens JMP, Needham/Mizuho/Rosenblatt coverage) raised targets/ratings after the print, supporting momentum. Analyst reactions
• Positive Sentiment: Product & GTM catalysts — new product rollouts (AI/security agents, GPU monitoring, MCP Server) and FedRAMP High certification open higher‑security federal deals. FedRAMP certification
• Neutral Sentiment: Unusually large options and call buying (tens of thousands of calls) and elevated volume amplified the move — this can magnify intraday gains but also increase short‑term volatility. Options flow
• Neutral Sentiment: Media and momentum trading are sustaining upside in the short term; watch upcoming commentary on bookings, renewal/expansion rates and AI/security inference revenue for confirmation.
• Negative Sentiment: Insider selling via pre‑arranged Rule 10b5‑1 plans — CTO, General Counsel, CRO and a director have sold shares recently; while often planned, these large disclosures can be read as profit‑taking. SEC Form 4 (CTO sale)
• Negative Sentiment: Valuation is extended — very high forward P/E and a premium multiple mean the stock is sensitive to any slowing in growth or weaker forward commentary; profit‑taking risk is elevated after the run.

About Datadog

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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