Datadog, Inc. $DDOG Holdings Trimmed by Strategy Capital LLC

Key Points

• Strategy Capital LLC trimmed its Datadog stake by 10.4% in the fourth quarter, selling 84,020 shares and leaving it with 724,287 shares worth about $98.5 million.
• Datadog reported strong quarterly results, with EPS of $0.60 beating estimates and revenue of $1.01 billion topping forecasts; revenue rose 32.1% year over year and the company issued upbeat FY2026 and Q2 guidance.
• Wall Street sentiment remains positive, with multiple analysts raising price targets and Datadog maintaining a consensus rating of “Moderate Buy” and an average target price of $231.64, even as recent insider sales may weigh on sentiment.

Strategy Capital LLC trimmed its position in shares of Datadog, Inc. (NASDAQ:DDOG - Free Report) by 10.4% during the 4th quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 724,287 shares of the company's stock after selling 84,020 shares during the period. Datadog accounts for 7.3% of Strategy Capital LLC's investment portfolio, making the stock its 6th biggest holding. Strategy Capital LLC owned 0.21% of Datadog worth $98,496,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Nomura Asset Management Co. Ltd. grew its holdings in shares of Datadog by 8.0% during the 4th quarter. Nomura Asset Management Co. Ltd. now owns 152,674 shares of the company's stock valued at $20,762,000 after acquiring an additional 11,348 shares in the last quarter. MUFG Securities EMEA plc grew its holdings in shares of Datadog by 115.6% during the 4th quarter. MUFG Securities EMEA plc now owns 13,342 shares of the company's stock valued at $1,814,000 after acquiring an additional 7,154 shares in the last quarter. Norges Bank purchased a new position in shares of Datadog during the 4th quarter valued at $469,461,000. Vanguard Group Inc. grew its holdings 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 acquiring an additional 9,748,738 shares in the last quarter. Finally, BNP Paribas grew its holdings in shares of Datadog by 18.4% during the 4th quarter. BNP Paribas now owns 41,280 shares of the company's stock valued at $5,614,000 after acquiring an additional 6,403 shares in the last quarter. 78.29% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several equities analysts have recently commented on DDOG shares. Raymond James Financial boosted their price target on shares of Datadog from $170.00 to $220.00 in a report on Thursday, May 7th. Rothschild & Co Redburn started coverage on shares of Datadog in a report on Thursday, April 23rd. They set a "buy" rating and a $170.00 price target on the stock. Stifel Nicolaus set a $305.00 price target on shares of Datadog in a report on Thursday, May 7th. Wedbush boosted their price target on shares of Datadog from $220.00 to $260.00 and gave the company an "outperform" rating in a report on Wednesday. Finally, BMO Capital Markets restated an "outperform" rating and set a $260.00 price target on shares of Datadog in a report on Friday. One investment analyst has rated the stock with a Strong Buy rating, forty have given a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Datadog has a consensus rating of "Moderate Buy" and an average price target of $231.64.

Datadog Stock Down 1.9%

DDOG stock opened at $229.90 on Friday. The company has a current ratio of 3.40, a quick ratio of 3.40 and a debt-to-equity ratio of 0.25. Datadog, Inc. has a 1 year low of $98.01 and a 1 year high of $278.70. The company has a fifty day simple moving average of $178.29 and a 200 day simple moving average of $147.38. The firm has a market cap of $81.84 billion, a PE ratio of 605.02, a PEG ratio of 25.08 and a beta of 1.56.

Datadog (NASDAQ:DDOG - Get Free Report) last released its quarterly earnings data on Thursday, May 7th. The company reported $0.60 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.51 by $0.09. Datadog had a net margin of 3.69% and a return on equity of 4.83%. The business had revenue of $1.01 billion during the quarter, compared to analyst estimates of $960.12 million. During the same quarter in the previous year, the business earned $0.46 EPS. Datadog's quarterly revenue was up 32.1% compared to the same quarter last year. 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 anticipate that Datadog, Inc. will post 0.61 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CEO Olivier Pomel sold 127,141 shares of Datadog stock in a transaction on Monday, June 8th. The shares were sold at an average price of $231.69, for a total value of $29,457,298.29. Following the completion of the sale, the chief executive officer owned 612,747 shares of the company's stock, valued at approximately $141,967,352.43. The trade was a 17.18% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO David M. Obstler sold 75,000 shares of the business's stock in a transaction on Monday, June 8th. The stock was sold at an average price of $231.69, for a total transaction of $17,376,750.00. Following the transaction, the chief financial officer directly owned 434,591 shares of the company's stock, valued at approximately $100,690,388.79. This represents a 14.72% 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. Insiders have sold 1,272,556 shares of company stock worth $252,615,825 in the last 90 days. 6.48% of the stock is owned by corporate insiders.

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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