Brown Advisory Inc. Lowers Stake in Datadog, Inc. $DDOG

Key Points

• Brown Advisory cut its Datadog stake by 27.5% in the fourth quarter, selling about 1.31 million shares and leaving it with 3.46 million shares valued at roughly $470.5 million.
• Insider selling has also been notable, with CTO Alexis Le-Quoc and Director Dev Ittycheria selling shares recently; over the last three months, insiders sold 1.27 million shares worth about $252.6 million.
• Datadog’s fundamentals and outlook remain strong, as the company beat earnings and revenue estimates in its latest quarter, posted 32.1% year-over-year revenue growth, and continues to receive broadly positive analyst ratings with an average price target of $231.64.

Brown Advisory Inc. lowered its stake in shares of Datadog, Inc. (NASDAQ:DDOG - Free Report) by 27.5% in the fourth quarter, according to its most recent 13F filing with the SEC. The firm owned 3,460,038 shares of the company's stock after selling 1,312,736 shares during the period. Brown Advisory Inc. owned approximately 0.99% of Datadog worth $470,534,000 at the end of the most recent reporting period.

A number of other hedge funds have also recently made changes to their positions in DDOG. Brighton Jones LLC acquired a new stake in Datadog during the 4th quarter worth approximately $209,000. Bison Wealth LLC purchased a new stake in shares of Datadog in the 4th quarter valued at approximately $228,000. Empowered Funds LLC increased its position in shares of Datadog by 7.0% in the 1st quarter. Empowered Funds LLC now owns 10,313 shares of the company's stock valued at $1,023,000 after purchasing an additional 672 shares during the last quarter. Geneos Wealth Management Inc. increased its position in shares of Datadog by 17.6% in the 1st quarter. Geneos Wealth Management Inc. now owns 769 shares of the company's stock valued at $76,000 after purchasing an additional 115 shares during the last quarter. Finally, Sivia Capital Partners LLC purchased a new stake in shares of Datadog in the 2nd quarter valued at approximately $509,000. Hedge funds and other institutional investors own 78.29% of the company's stock.

Insider Transactions at Datadog

In related news, CTO Alexis Le-Quoc sold 53,912 shares of the stock in a transaction on Monday, June 1st. The shares were sold at an average price of $271.05, for a total value of $14,612,847.60. Following the transaction, the chief technology officer directly owned 531,311 shares of the company's stock, valued at $144,011,846.55. This trade represents a 9.21% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible 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 transaction of $29,853,600.00. Following the completion of the transaction, the director directly owned 39,235 shares in the company, valued at $9,760,883.30. This trade represents a 75.36% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 1,272,556 shares of company stock worth $252,615,825. Insiders own 6.48% of the company's stock.

Datadog Trading Down 1.9%

NASDAQ DDOG opened at $229.90 on Friday. The company has a debt-to-equity ratio of 0.25, a current ratio of 3.40 and a quick ratio of 3.40. The firm's fifty day moving average price is $178.29 and its 200 day moving average price is $147.38. The company has a market capitalization of $81.84 billion, a price-to-earnings ratio of 605.02, a price-to-earnings-growth ratio of 24.62 and a beta of 1.56. Datadog, Inc. has a 12 month low of $98.01 and a 12 month high of $278.70.

Datadog (NASDAQ:DDOG - Get Free Report) last posted its earnings results on Thursday, May 7th. The company reported $0.60 EPS for the quarter, beating analysts' consensus estimates of $0.51 by $0.09. The firm had revenue of $1.01 billion for the quarter, compared to the consensus estimate of $960.12 million. Datadog had a net margin of 3.69% and a return on equity of 4.83%. The company's revenue was up 32.1% on a year-over-year basis. During the same period last year, the firm posted $0.46 EPS. Datadog has set its FY 2026 guidance at 2.360-2.440 EPS and its Q2 2026 guidance at 0.570-0.590 EPS. On average, sell-side analysts expect that Datadog, Inc. will post 0.61 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

DDOG has been the topic of a number of recent analyst reports. Citigroup increased their price objective on shares of Datadog from $175.00 to $218.00 and gave the company a "buy" rating in a research report on Friday, May 8th. Cantor Fitzgerald reissued an "overweight" rating and issued a $226.00 price objective on shares of Datadog in a research report on Thursday. KeyCorp increased their price objective on shares of Datadog from $155.00 to $225.00 and gave the company an "overweight" rating in a research report on Friday, May 8th. Scotiabank increased their price objective on shares of Datadog from $160.00 to $225.00 and gave the company an "outperform" rating in a research report on Friday, May 8th. Finally, Robert W. Baird set a $210.00 price objective on shares of Datadog in a research report on Friday, May 8th. One equities research analyst has rated the stock with a Strong Buy rating, forty have given a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $231.64.

Key Stories Impacting Datadog

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Analysts are increasingly upbeat on Datadog’s AI opportunity. BMO raised its price target to $260, BTIG reaffirmed a buy rating with a $255 target, and Wedbush also reiterated a buy view, reinforcing expectations for further upside. Article link
• Positive Sentiment: Coverage around Datadog’s GPU Monitoring and broader AI observability stack suggests the company is expanding its role in optimizing AI workloads, which could become a meaningful growth driver. Article link
• Positive Sentiment: Technical traders are encouraged by DDOG breaking above its 20-day moving average, a sign of improving short-term momentum after a strong run. Article link
• Positive Sentiment: Financial press is highlighting Datadog as a beneficiary of AI-driven cybersecurity spending, with analysts raising targets and framing DDOG as a hidden winner from the AI boom. Article link
• Positive Sentiment: Datadog’s recent AI-focused product launch and broader platform expansion are strengthening the company’s growth narrative and supporting elevated valuation expectations. Article link
• Neutral Sentiment: Datadog remains a premium-valued stock after its strong revenue growth and beat-and-raise earnings report, so the market is balancing solid fundamentals against high expectations.
• Negative Sentiment: Recent insider sales by CEO Olivier Pomel and CFO David Obstler may create some near-term overhang, even though the transactions were made under pre-arranged trading plans. Article link

Datadog 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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