California State Teachers Retirement System Buys 120,742,361 Shares of Datadog, Inc. $DDOG

Key Points

• California State Teachers Retirement System increased its Datadog stake by 120.7 million shares in the second quarter, bringing its ownership to approximately 33.75% of the company. Institutional investors collectively own 78.29% of Datadog.
• Analyst sentiment remains favorable, with Datadog holding a “Moderate Buy” consensus rating and an average price target of $276.32, despite Goldman Sachs maintaining a “Sell” rating.
• Datadog exceeded quarterly expectations, reporting adjusted EPS of $0.65 versus a $0.58 estimate and revenue of $1.12 billion, up 35.6% year over year. However, insiders sold approximately $272 million in stock over the past 90 days.

California State Teachers Retirement System raised its stake in Datadog, Inc. (NASDAQ:DDOG - Free Report) by 27,002.8% in the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 121,189,509 shares of the company's stock after purchasing an additional 120,742,361 shares during the quarter. California State Teachers Retirement System owned approximately 33.75% of Datadog worth $31,552,901,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds also recently made changes to their positions in the company. JPL Wealth Management LLC acquired a new position in Datadog during the third quarter worth $27,000. EMC Capital Management acquired a new stake in Datadog in the second quarter valued at $28,000. Rothschild Investment LLC lifted its stake in Datadog by 52.5% in the fourth quarter. Rothschild Investment LLC now owns 273 shares of the company's stock valued at $37,000 after acquiring an additional 94 shares during the last quarter. Annis Gardner Whiting Capital Advisors LLC lifted its stake in Datadog by 341.7% in the first quarter. Annis Gardner Whiting Capital Advisors LLC now owns 318 shares of the company's stock valued at $38,000 after acquiring an additional 246 shares during the last quarter. Finally, Elevation Wealth Partners LLC grew its position in shares of Datadog by 2,700.0% in the 2nd quarter. Elevation Wealth Partners LLC now owns 168 shares of the company's stock valued at $44,000 after acquiring an additional 162 shares during the period. Institutional investors own 78.29% of the company's stock.

Analyst Ratings Changes

Several research firms have recently weighed in on DDOG. The Goldman Sachs Group restated a "sell" rating and set a $158.00 price objective on shares of Datadog in a research note on Friday, August 7th. Sanford C. Bernstein cut Datadog from an "outperform" rating to a "market perform" rating and lifted their price target for the stock from $180.00 to $226.00 in a report on Monday, July 6th. New Street Research set a $260.00 price target on Datadog in a research report on Thursday, June 11th. Piper Sandler restated an "overweight" rating and issued a $275.00 price objective (up from $230.00) on shares of Datadog in a research note on Wednesday, June 10th. Finally, Truist Financial raised Datadog from a "hold" rating to a "buy" rating and raised their price objective for the company from $190.00 to $300.00 in a research report on Monday, June 15th. One analyst has rated the stock with a Strong Buy rating, thirty-eight have assigned a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $276.32.

Insider Activity

In other news, CTO Alexis Le-Quoc sold 53,912 shares of the company's stock in a transaction that occurred on Wednesday, July 8th. The shares were sold at an average price of $257.24, for a total transaction of $13,868,322.88. Following the completion of the sale, the chief technology officer owned 509,805 shares of the company's stock, valued at approximately $131,142,238.20. This represents a 9.56% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Michael Callahan sold 112,500 shares of the company's stock in a transaction that occurred on Friday, June 12th. The stock was sold at an average price of $231.60, for a total transaction of $26,055,000.00. Following the sale, the director directly owned 14,996 shares of the company's stock, valued at approximately $3,473,073.60. This trade represents a 88.24% 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. In the last ninety days, insiders sold 1,114,589 shares of company stock worth $271,957,031. 6.48% of the stock is currently owned by corporate insiders.

Datadog Stock Performance

Shares of NASDAQ:DDOG opened at $212.93 on Tuesday. Datadog, Inc. has a 12-month low of $98.01 and a 12-month high of $292.72. The company's 50 day moving average price is $248.93 and its two-hundred day moving average price is $194.39. The firm has a market cap of $76.46 billion, a PE ratio of 434.56, a PEG ratio of 20.85 and a beta of 1.49. The company has a quick ratio of 3.20, a current ratio of 3.20 and a debt-to-equity ratio of 0.23.

Datadog (NASDAQ:DDOG - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The company reported $0.65 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.58 by $0.07. Datadog had a return on equity of 5.67% and a net margin of 4.48%.The business had revenue of $1.12 billion for the quarter, compared to the consensus estimate of $1.08 billion. During the same quarter in the prior year, the business 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. Equities research analysts predict that Datadog, Inc. will post 0.7 earnings per share for the current year.

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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