Datadog (NASDAQ:DDOG) Trading Up 7% Following Analyst Upgrade

Key Points

• Datadog shares jumped 7% to about $250 after Citigroup raised its price target from $300 to $305 and maintained a buy rating. Analysts broadly remain bullish, with a consensus “Moderate Buy” rating and an average price target of $276.32.
• The company reported quarterly EPS of $0.65, beating estimates of $0.58, while revenue rose 35.6% year over year to $1.12 billion, ahead of the $1.08 billion consensus forecast.
• Insiders sold heavily over the past 90 days, disposing of 1.36 million shares worth approximately $334.1 million; institutional investors still own 78.29% of the stock.

Datadog, Inc. (NASDAQ:DDOG - Get Free Report)'s stock price rose 7% on Monday after Citigroup raised their price target on the stock from $300.00 to $305.00. Citigroup currently has a buy rating on the stock. Datadog traded as high as $250.00 and last traded at $250.3330. 1,386,945 shares changed hands during trading, a decline of 75% from the average daily volume of 5,644,125 shares. The stock had previously closed at $233.93.

Other analysts have also issued research reports about the stock. Wall Street Zen upgraded shares of Datadog from a "hold" rating to a "buy" rating in a research report on Saturday, May 16th. DA Davidson reiterated a "buy" rating and issued a $315.00 price objective on shares of Datadog in a research report on Friday. KeyCorp increased their target price on shares of Datadog from $225.00 to $320.00 and gave the stock an "overweight" rating in a research note on Thursday, July 16th. BMO Capital Markets set a $300.00 target price on Datadog in a research report on Friday. Finally, Oppenheimer lifted their price target on Datadog from $220.00 to $300.00 and gave the company an "outperform" rating in a research note on Monday, July 20th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-eight have assigned a Buy rating, three have assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, Datadog presently has a consensus rating of "Moderate Buy" and a consensus price target of $276.32.

Insider Buying and Selling

In related news, Director Michael James Callahan sold 12,500 shares of the stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $287.47, for a total value of $3,593,375.00. Following the completion of the sale, the director owned 14,996 shares of the company's stock, valued at approximately $4,310,900.12. This trade represents a 45.46% 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 link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Amit Agarwal sold 20,000 shares of Datadog stock in a transaction that occurred on Thursday, July 30th. The stock was sold at an average price of $266.82, for a total value of $5,336,400.00. Following the transaction, the director owned 1,640 shares in the company, valued at approximately $437,584.80. The trade was a 92.42% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 1,355,022 shares of company stock valued at $334,071,384 over the last ninety days. 6.48% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the company. Elevation Point Wealth Partners LLC raised its position in Datadog by 3.3% during the third quarter. Elevation Point Wealth Partners LLC now owns 1,697 shares of the company's stock valued at $242,000 after buying an additional 55 shares during the period. Chicago Partners Investment Group LLC lifted its stake in Datadog by 1.6% in the 4th quarter. Chicago Partners Investment Group LLC now owns 4,778 shares of the company's stock worth $622,000 after acquiring an additional 73 shares in the last quarter. Vivaldi Capital Management LP boosted its position in Datadog by 2.8% during the 3rd quarter. Vivaldi Capital Management LP now owns 2,689 shares of the company's stock worth $383,000 after acquiring an additional 74 shares during the period. State of Wyoming grew its stake in Datadog by 4.1% during the 1st quarter. State of Wyoming now owns 1,946 shares of the company's stock valued at $230,000 after acquiring an additional 76 shares in the last quarter. Finally, Farther Finance Advisors LLC grew its stake in Datadog by 2.0% during the 4th quarter. Farther Finance Advisors LLC now owns 3,892 shares of the company's stock valued at $529,000 after acquiring an additional 78 shares in the last quarter. Institutional investors and hedge funds own 78.29% of the company's stock.

Datadog Stock Up 6.9%

The company has a market cap of $89.00 billion, a price-to-earnings ratio of 509.71, a P/E/G ratio of 23.28 and a beta of 1.54. The company has a current ratio of 3.20, a quick ratio of 3.20 and a debt-to-equity ratio of 0.23. The business has a fifty day moving average price of $249.29 and a two-hundred day moving average price of $178.26.

Datadog (NASDAQ:DDOG - Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The company reported $0.65 EPS for the quarter, topping the consensus estimate of $0.58 by $0.07. Datadog had a net margin of 4.48% and a return on equity of 5.67%. The business had revenue of $1.12 billion during the quarter, compared to analysts' expectations of $1.08 billion. During the same period last year, the company posted $0.46 earnings per share. The firm's quarterly revenue was up 35.6% compared to the same quarter last year. Datadog has set its Q3 2026 guidance at 0.630-0.650 EPS and its FY 2026 guidance at 2.500-2.540 EPS. On average, equities analysts predict that Datadog, Inc. will post 0.66 earnings per share for the current year.

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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