Datadog (NASDAQ:DDOG) Stock Rating Upgraded by The Goldman Sachs Group

Key Points

• The Goldman Sachs Group assigned Datadog a 'strong sell' rating in a report issued Monday.
• Despite that, the Street lean remains positive — 32 analysts rate DDOG a Buy, five Hold and two Sell, giving a consensus rating of Moderate Buy and an average price target of $198.82.
• Datadog recently beat quarterly estimates (EPS $0.55 vs. $0.45; revenue $885.65M vs. $852.77M) and set FY2025 EPS guidance of 2.000–2.020, while insiders have sold roughly 1.075M shares (~$193M) in the last 90 days.

Datadog (NASDAQ:DDOG - Get Free Report) was upgraded by research analysts at The Goldman Sachs Group to a "strong sell" rating in a report issued on Monday,Zacks.com reports.

A number of other analysts have also recently issued reports on DDOG. Canaccord Genuity Group reduced their price objective on shares of Datadog from $225.00 to $210.00 and set a "buy" rating for the company in a research note on Friday, December 19th. Needham & Company LLC increased their price target on Datadog from $175.00 to $220.00 and gave the stock a "buy" rating in a research note on Thursday, November 6th. Oppenheimer raised their price target on Datadog from $165.00 to $195.00 and gave the company an "outperform" rating in a report on Friday, October 17th. Rosenblatt Securities upped their price objective on Datadog from $170.00 to $200.00 and gave the stock a "buy" rating in a research note on Thursday, November 6th. Finally, Scotiabank increased their target price on Datadog from $150.00 to $217.00 and gave the stock a "sector outperform" rating in a research report on Friday, November 7th. Thirty-two analysts have rated the stock with a Buy rating, five have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $198.82.

Datadog Stock Up 0.9%

NASDAQ DDOG opened at $126.57 on Monday. Datadog has a 52 week low of $81.63 and a 52 week high of $201.69. The company has a quick ratio of 3.66, a current ratio of 3.66 and a debt-to-equity ratio of 0.29. The company has a market capitalization of $44.38 billion, a P/E ratio of 408.29, a price-to-earnings-growth ratio of 23.26 and a beta of 1.26. The stock's 50-day moving average price is $153.96 and its 200-day moving average price is $146.81.

Datadog (NASDAQ:DDOG - Get Free Report) last announced its quarterly earnings data on Thursday, November 6th. The company reported $0.55 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.45 by $0.10. Datadog had a return on equity of 4.14% and a net margin of 3.32%.The company had revenue of $885.65 million during the quarter, compared to the consensus estimate of $852.77 million. During the same period in the previous year, the company posted $0.46 EPS. The firm's revenue was up 28.4% on a year-over-year basis. Datadog has set its FY 2025 guidance at 2.000-2.020 EPS and its Q4 2025 guidance at 0.54-0.56 EPS. On average, equities research analysts predict that Datadog will post 0.34 earnings per share for the current year.

Insider Transactions at Datadog

In related news, CTO Alexis Le-Quoc sold 43,106 shares of the stock in a transaction that occurred on Monday, January 5th. The stock was sold at an average price of $133.93, for a total transaction of $5,773,186.58. Following the completion of the transaction, the chief technology officer directly owned 301,458 shares of the company's stock, valued at approximately $40,374,269.94. This represents a 12.51% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Olivier Pomel sold 11,195 shares of the firm's stock in a transaction that occurred on Wednesday, December 17th. The shares were sold at an average price of $137.93, for a total value of $1,544,126.35. Following the transaction, the chief executive officer owned 518,133 shares of the company's stock, valued at $71,466,084.69. This represents a 2.11% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 1,074,988 shares of company stock valued at $193,329,916. 8.70% of the stock is owned by insiders.

Institutional Investors Weigh In On Datadog

Several large investors have recently bought and sold shares of DDOG. Rothschild Investment LLC grew its stake 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 buying an additional 100 shares in the last quarter. Physician Wealth Advisors Inc. raised its position in shares of Datadog by 315.2% during the 3rd quarter. Physician Wealth Advisors Inc. now owns 191 shares of the company's stock valued at $27,000 after buying an additional 145 shares in the last quarter. Westside Investment Management Inc. lifted its holdings in shares of Datadog by 74.3% in the 3rd quarter. Westside Investment Management Inc. now owns 176 shares of the company's stock valued at $27,000 after acquiring an additional 75 shares during the last quarter. JPL Wealth Management LLC purchased a new position in Datadog in the third quarter worth about $27,000. Finally, Tripletail Wealth Management LLC bought a new stake in Datadog during the third quarter worth approximately $28,000. 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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