Arrowstreet Capital Limited Partnership Has $185.46 Million Stake in Datadog, Inc. $DDOG

Key Points

• Arrowstreet Capital sharply increased its Datadog position in the first quarter, boosting its stake by 162.2% to 1,571,018 shares valued at about $185.46 million.
• Datadog reported better-than-expected quarterly results, with EPS of $0.60 versus estimates of $0.51 and revenue of $1.01 billion, up 32.1% year over year.
• Despite strong results and multiple analyst price target hikes, insiders have been selling shares, including CTO Alexis Le-Quoc and Director Dev Ittycheria, with total insider sales reaching $317.7 million over the last three months.

Arrowstreet Capital Limited Partnership grew its stake in shares of Datadog, Inc. (NASDAQ:DDOG - Free Report) by 162.2% during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 1,571,018 shares of the company's stock after buying an additional 971,910 shares during the period. Arrowstreet Capital Limited Partnership owned approximately 0.45% of Datadog worth $185,459,000 as of its most recent filing with the Securities and Exchange Commission.

Several other institutional investors also recently modified their holdings of DDOG. Price T Rowe Associates Inc. MD boosted its position in shares of Datadog by 7.1% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 14,423,814 shares of the company's stock worth $1,961,496,000 after purchasing an additional 956,993 shares in the last quarter. State Street Corp raised its stake in Datadog by 106.8% during the 3rd quarter. State Street Corp now owns 13,732,777 shares of the company's stock worth $1,955,547,000 after buying an additional 7,091,075 shares during the period. Geode Capital Management LLC raised its stake in Datadog by 2.2% during the 4th quarter. Geode Capital Management LLC now owns 9,056,086 shares of the company's stock worth $1,227,184,000 after buying an additional 197,816 shares during the period. Jennison Associates LLC lifted its holdings in Datadog by 43.7% during the fourth quarter. Jennison Associates LLC now owns 7,623,993 shares of the company's stock worth $1,036,787,000 after acquiring an additional 2,316,994 shares in the last quarter. Finally, Invesco Ltd. lifted its holdings in Datadog by 119.2% during the third quarter. Invesco Ltd. now owns 4,075,721 shares of the company's stock worth $580,383,000 after acquiring an additional 2,216,402 shares in the last quarter. 78.29% of the stock is currently owned by institutional investors and hedge funds.

Datadog Stock Up 1.0%

Shares of DDOG stock opened at $246.86 on Friday. Datadog, Inc. has a 52-week low of $98.01 and a 52-week high of $278.70. The stock has a market cap of $87.87 billion, a price-to-earnings ratio of 649.65, a PEG ratio of 24.85 and a beta of 1.54. The firm's 50-day moving average is $241.40 and its 200-day moving average is $168.56. The company has a debt-to-equity ratio of 0.25, a quick ratio of 3.40 and a current ratio of 3.40.

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 return on equity of 4.83% and a net margin of 3.69%.Datadog's quarterly revenue was up 32.1% on a year-over-year basis. During the same quarter 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. Sell-side analysts predict that Datadog, Inc. will post 0.64 EPS for the current year.

Analysts Set New Price Targets

Several equities analysts recently issued reports on the company. Wall Street Zen upgraded Datadog from a "hold" rating to a "buy" rating in a research report on Saturday, May 16th. Rosenblatt Securities raised their target price on shares of Datadog from $178.00 to $220.00 and gave the stock a "buy" rating in a report on Friday, May 8th. Guggenheim lifted their price target on shares of Datadog from $225.00 to $300.00 and gave the company a "buy" rating in a research note on Wednesday. Citigroup reiterated a "market outperform" rating on shares of Datadog in a report on Monday. Finally, Mizuho increased their price objective on shares of Datadog from $220.00 to $300.00 and gave the stock an "outperform" rating in a research report on Wednesday, July 15th. Two research analysts have rated the stock with a Strong Buy rating, thirty-eight have assigned a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $261.68.

Insider Activity at Datadog

In related news, CTO Alexis Le-Quoc sold 53,912 shares of the business's stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $271.05, for a total transaction of $14,612,847.60. Following the transaction, the chief technology officer directly owned 531,311 shares of the company's stock, valued at approximately $144,011,846.55. The trade was a 9.21% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Dev Ittycheria sold 120,000 shares of the stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $248.78, for a total value of $29,853,600.00. Following the completion of the sale, the director owned 39,235 shares in the company, valued at approximately $9,760,883.30. This trade represents a 75.36% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 1,396,309 shares of company stock worth $317,712,002 in the last three months. 6.48% of the stock is owned by company insiders.

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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