Baillie Gifford & Co. Sells 7,451,970 Shares of Datadog, Inc. $DDOG

Key Points

• Baillie Gifford cut its Datadog stake by 65.3%, selling 7,451,970 shares and leaving 3,961,509 shares (about 1.13% of the company) valued at ~$538.7 million per its SEC filing.
• Earnings and guidance: Datadog beat quarterly estimates (EPS $0.59 vs. $0.55; revenue $953.2M, +29.2% YoY) and set FY2026 EPS guidance of $2.080–2.160, while analysts maintain a "Moderate Buy" consensus with an average target of $181.41.
• Near-term selling pressure is evident—insiders sold 489,306 shares (~$59.85M) in the last 90 days and traders placed unusually large put volume (~28k puts)—even as many institutional holders and analysts remain positive.

Baillie Gifford & Co. decreased its stake in shares of Datadog, Inc. (NASDAQ:DDOG - Free Report) by 65.3% during the fourth quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 3,961,509 shares of the company's stock after selling 7,451,970 shares during the period. Baillie Gifford & Co. owned approximately 1.13% of Datadog worth $538,726,000 as of its most recent SEC filing.

A number of other large investors have also recently modified their holdings of the stock. Vanguard Group Inc. boosted its stake in shares of Datadog by 30.3% during the 3rd quarter. Vanguard Group Inc. now owns 41,902,227 shares of the company's stock valued at $5,966,877,000 after purchasing an additional 9,748,738 shares in the last quarter. State Street Corp boosted its stake in shares of Datadog by 106.8% during the 3rd quarter. State Street Corp now owns 13,732,777 shares of the company's stock valued at $1,955,547,000 after purchasing an additional 7,091,075 shares in the last quarter. Massachusetts Financial Services Co. MA boosted its stake in shares of Datadog by 0.9% during the 3rd quarter. Massachusetts Financial Services Co. MA now owns 4,289,570 shares of the company's stock valued at $610,835,000 after purchasing an additional 40,276 shares in the last quarter. Invesco Ltd. boosted its stake in shares of Datadog by 119.2% during the 3rd quarter. Invesco Ltd. now owns 4,075,721 shares of the company's stock valued at $580,383,000 after purchasing an additional 2,216,402 shares in the last quarter. Finally, Northern Trust Corp boosted its stake in shares of Datadog by 45.0% during the 3rd quarter. Northern Trust Corp now owns 2,707,291 shares of the company's stock valued at $385,518,000 after purchasing an additional 840,633 shares in the last quarter. Institutional investors own 78.29% of the company's stock.

Datadog Stock Performance

Shares of NASDAQ DDOG opened at $105.37 on Monday. The company has a debt-to-equity ratio of 0.26, a current ratio of 3.38 and a quick ratio of 3.38. The stock has a market cap of $37.15 billion, a P/E ratio of 339.90, a price-to-earnings-growth ratio of 28.96 and a beta of 1.29. Datadog, Inc. has a 1 year low of $87.69 and a 1 year high of $201.69. The firm has a 50-day moving average of $119.79 and a 200 day moving average of $139.50.

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, topping the consensus estimate of $0.55 by $0.04. The business had revenue of $953.19 million during the quarter, compared to analysts' expectations of $916.53 million. Datadog had a net margin of 3.14% and a return on equity of 4.14%. The business's revenue for the quarter was up 29.2% compared to the same quarter last year. During the same period in the previous year, the company earned $0.49 earnings per share. 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, sell-side analysts expect that Datadog, Inc. will post 0.34 EPS for the current fiscal year.

Trending Headlines about Datadog

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Guggenheim upgraded Datadog to a "Buy" and set a $175 price target, citing AI-driven growth in telemetry/data volumes and forecasting stronger growth than the Street — a clear positive catalyst for longer-term upside. Guggenheim upgrade article
• Positive Sentiment: Product/news support: Datadog launched new tools and continues to be cited by firms (Wells Fargo) as a favored SaaS name amid rising AI spend — helps underpin fundamentals and revenue growth expectations. Product launch article
• Neutral Sentiment: Short-interest report in the feed is malformed (reports 0 shares / NaN change) and provides no actionable signal; ignore until a reliable short-interest update is available.
• Negative Sentiment: Insider sales: CTO Alexis Le‑Quoc and director Amit Agarwal recently sold large blocks of shares (multi-million dollar transactions). Both trades were via pre‑arranged Rule 10b5‑1 plans — which reduces the informational sting but still raises near‑term selling pressure and investor attention. Alexis Le‑Quoc sale Amit Agarwal sale
• Negative Sentiment: Options activity: unusually large put buying (about 28k puts, ~22% above typical daily put volume) signals increased short-term hedging or bearish positioning from traders, which can amplify downward moves.
• Negative Sentiment: Price momentum / market context: recent headlines and data show the stock has pulled back in recent weeks and fell amid a market uptick — short-term momentum is weak even as long-term fundamentals (revenue beat & guidance) remain intact. Price decline article

Insider Activity

In other Datadog news, CTO Alexis Le-Quoc sold 53,912 shares of Datadog stock in a transaction dated Tuesday, March 10th. The shares were sold at an average price of $125.49, for a total value of $6,765,416.88. Following the completion of the transaction, the chief technology officer directly owned 437,257 shares of the company's stock, valued at approximately $54,871,380.93. The trade was a 10.98% 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, Director Amit Agarwal sold 20,000 shares of Datadog stock in a transaction dated Monday, March 23rd. The stock was sold at an average price of $127.36, for a total transaction of $2,547,200.00. Following the completion of the transaction, the director directly owned 1,640 shares of the company's stock, valued at $208,870.40. This trade represents a 92.42% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 489,306 shares of company stock valued at $59,852,594 over the last ninety days. 6.67% of the stock is currently owned by corporate insiders.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently weighed in on the stock. TD Cowen reaffirmed a "buy" rating on shares of Datadog in a research note on Wednesday, January 21st. KeyCorp cut their target price on shares of Datadog from $170.00 to $155.00 and set an "overweight" rating on the stock in a research note on Wednesday, February 4th. Guggenheim raised shares of Datadog from a "neutral" rating to a "buy" rating and set a $175.00 price target for the company in a research report on Thursday. Daiwa Securities Group began coverage on shares of Datadog in a research report on Tuesday, January 27th. They set a "buy" rating and a $190.00 price target for the company. Finally, Mizuho lowered their price target on shares of Datadog from $200.00 to $170.00 and set an "outperform" rating for the company in a research report on Wednesday, January 21st. 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's stock. According to data from MarketBeat.com, Datadog presently has an average rating of "Moderate Buy" and a consensus price target of $181.41.

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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