Datadog (NASDAQ:DDOG) Trading Up 8.1% - Still a Buy?

Key Points

• Shares rose 8.1% to about $119.49 on Wednesday, though trading volume was light at 1.87M shares versus a 5.67M average.
• Analyst sentiment is broadly positive—38 Buys, three Holds and two Sells—with a consensus rating of “Moderate Buy” and a consensus price target of $180.51, even as several firms trimmed targets.
• Datadog beat expectations for the quarter (revenue $953.2M vs. $916.5M est.; EPS $0.59 vs. $0.55 est.) and provided FY‑2026 guidance, but the stock trades at a very rich P/E ~385 and insiders sold roughly 523,833 shares (~$63.6M) last quarter.

Shares of Datadog, Inc. (NASDAQ:DDOG - Get Free Report) traded up 8.1% on Wednesday . The company traded as high as $119.40 and last traded at $119.4940. 1,869,527 shares were traded during mid-day trading, a decline of 67% from the average session volume of 5,670,466 shares. The stock had previously closed at $110.57.

Analysts Set New Price Targets

Several equities research analysts have recently commented on DDOG shares. Barclays reduced their price target on shares of Datadog from $195.00 to $165.00 and set an "overweight" rating for the company in a research report on Wednesday, February 11th. Evercore cut their price objective on shares of Datadog from $215.00 to $175.00 and set an "outperform" rating for the company in a research report on Monday, February 2nd. UBS Group set a $195.00 price objective on Datadog in a research note on Monday, February 9th. Scotiabank lowered their target price on Datadog from $180.00 to $160.00 and set a "sector outperform" rating on the stock in a research report on Wednesday, February 11th. Finally, Benchmark initiated coverage on Datadog in a research report on Wednesday, April 1st. They issued a "buy" rating for the company. Thirty-eight research analysts have rated the stock with a Buy rating, three have given a Hold rating and two have given a Sell rating to the company. According to MarketBeat, Datadog has a consensus rating of "Moderate Buy" and a consensus price target of $180.51.

Datadog Trading Up 8.0%

The firm has a market capitalization of $42.09 billion, a P/E ratio of 385.11, a PEG ratio of 30.26 and a beta of 1.29. 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 stock has a fifty day simple moving average of $119.23 and a 200 day simple moving average of $139.12.

Datadog (NASDAQ:DDOG - Get Free Report) last issued its earnings results on Tuesday, February 10th. The company reported $0.59 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.55 by $0.04. Datadog had a return on equity of 4.14% and a net margin of 3.14%.The company had revenue of $953.19 million for the quarter, compared to the consensus estimate of $916.53 million. During the same quarter last year, the company earned $0.49 EPS. The firm's quarterly revenue was up 29.2% on a year-over-year basis. Datadog has set its FY 2026 guidance at 2.080-2.160 EPS and its Q1 2026 guidance at 0.490-0.510 EPS. As a group, research analysts forecast that Datadog, Inc. will post 0.34 EPS for the current year.

Insider Buying and Selling

In related news, CRO Sean Michael Walters sold 22,330 shares of the firm's stock in a transaction on Wednesday, March 11th. The shares were sold at an average price of $125.68, for a total value of $2,806,434.40. Following the completion of the transaction, the executive directly owned 238,384 shares of the company's stock, valued at approximately $29,960,101.12. This trade represents a 8.56% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CTO Alexis Le-Quoc sold 53,912 shares of the business's stock in a transaction on 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 completion of the sale, 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 position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 523,833 shares of company stock worth $63,581,080. 6.67% of the stock is owned by insiders.

Institutional Trading of Datadog

Several hedge funds have recently made changes to their positions in the business. Westside Investment Management Inc. increased its stake in Datadog by 74.3% during the third quarter. Westside Investment Management Inc. now owns 176 shares of the company's stock worth $27,000 after acquiring an additional 75 shares during the last quarter. Rothschild Investment LLC increased its position in shares of Datadog by 126.6% during the 3rd quarter. Rothschild Investment LLC now owns 179 shares of the company's stock valued at $25,000 after purchasing an additional 100 shares during the last quarter. Tripletail Wealth Management LLC purchased a new stake in Datadog during the 3rd quarter valued at $28,000. Physician Wealth Advisors Inc. boosted its stake in Datadog by 315.2% during the third quarter. Physician Wealth Advisors Inc. now owns 191 shares of the company's stock worth $27,000 after buying an additional 145 shares during the period. Finally, JPL Wealth Management LLC bought a new position in Datadog during the third quarter valued at $27,000. 78.29% of the stock is currently owned by hedge funds and other institutional investors.

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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