Datadog, Inc. $DDOG Position Increased by Motley Fool Asset Management LLC

Key Points

• Motley Fool Asset Management boosted its Datadog stake by 12.8% in the fourth quarter, bringing its holding to 60,467 shares valued at about $8.2 million.
• Wall Street remains constructive on Datadog, with several firms raising price targets; Bank of America lifted its target to $280 and kept a Buy rating, while the consensus view is still Moderate Buy.
• Datadog reported strong quarterly results, beating EPS and revenue estimates with 32.1% year-over-year revenue growth, even as insiders continued to sell shares under pre-arranged trading plans.

Motley Fool Asset Management LLC increased its position in shares of Datadog, Inc. (NASDAQ:DDOG - Free Report) by 12.8% in the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 60,467 shares of the company's stock after acquiring an additional 6,877 shares during the period. Motley Fool Asset Management LLC's holdings in Datadog were worth $8,223,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds have also recently bought and sold shares of the company. Rothschild Investment LLC increased its position in Datadog by 126.6% during the third quarter. Rothschild Investment LLC now owns 179 shares of the company's stock worth $25,000 after buying an additional 100 shares during the last quarter. JPL Wealth Management LLC acquired a new position in Datadog during the third quarter worth $27,000. CoreCap Advisors LLC increased its position in Datadog by 1,461.5% during the fourth quarter. CoreCap Advisors LLC now owns 203 shares of the company's stock worth $28,000 after buying an additional 190 shares during the last quarter. Flagship Harbor Advisors LLC acquired a new position in Datadog during the fourth quarter worth $31,000. Finally, NBC Securities Inc. increased its position in Datadog by 242.6% during the fourth quarter. NBC Securities Inc. now owns 233 shares of the company's stock worth $32,000 after buying an additional 165 shares during the last quarter. 78.29% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several research firms have commented on DDOG. TD Cowen increased their target price on shares of Datadog from $190.00 to $235.00 and gave the stock a "buy" rating in a research report on Thursday, May 7th. Rosenblatt Securities increased their target price on shares of Datadog from $178.00 to $220.00 and gave the stock a "buy" rating in a research report on Friday, May 8th. Oppenheimer increased their target price on shares of Datadog from $200.00 to $220.00 in a research report on Thursday, May 7th. Jefferies Financial Group set a $210.00 target price on shares of Datadog and gave the stock a "buy" rating in a research report on Thursday, May 7th. Finally, Bank of America increased their target price on shares of Datadog from $260.00 to $280.00 and gave the stock a "buy" rating in a research report on Monday. One research analyst has rated the stock with a Strong Buy rating, forty have assigned a Buy rating, one has given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, Datadog presently has an average rating of "Moderate Buy" and an average price target of $220.17.

Datadog News Roundup

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Datadog unveiled 100+ new capabilities at its DASH event, including major upgrades to Bits AI, AI Guard, Bring Your Own Cloud, and Agent Console. The new tools are aimed at increasing automation, improving observability, and helping customers manage AI and security complexity, which supports the company’s growth story. Article link
• Positive Sentiment: Bank of America raised its price target on Datadog to $280 from $260 and reiterated a Buy rating, reinforcing expectations for further upside after the company’s strong earnings and revenue growth. Article link
• Positive Sentiment: Other recent analyst writeups also framed Datadog as a buy candidate, suggesting Wall Street remains constructive on the company’s software and AI-driven observability opportunities. Article link
• Neutral Sentiment: A preview article said investors should “mark their calendars for June 9,” pointing to a possible catalyst around the DASH event, but the details were not clear. Article link
• Negative Sentiment: Recent insider activity remains a headwind: Director Titilope Cole sold 5,131 shares, continuing a pattern of heavy insider selling that can weigh on investor confidence. Article link

Datadog Stock Down 1.9%

DDOG stock opened at $227.34 on Wednesday. The company has a debt-to-equity ratio of 0.25, a current ratio of 3.40 and a quick ratio of 3.40. Datadog, Inc. has a 52-week low of $98.01 and a 52-week high of $278.70. The company has a 50-day moving average of $171.50 and a two-hundred day moving average of $145.78. The stock has a market capitalization of $80.92 billion, a price-to-earnings ratio of 598.28, a price-to-earnings-growth ratio of 24.81 and a beta of 1.56.

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

Insiders Place Their Bets

In other Datadog news, CTO Alexis Le-Quoc sold 21,506 shares of the firm's stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $267.15, for a total transaction of $5,745,327.90. Following the completion of the transaction, the chief technology officer owned 509,805 shares in the company, valued at $136,194,405.75. This trade represents a 4.05% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 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, CRO Sean Michael Walters sold 13,409 shares of the firm's stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $267.15, for a total transaction of $3,582,214.35. Following the transaction, the executive owned 270,296 shares of the company's stock, valued at approximately $72,209,576.40. This represents a 4.73% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 1,070,415 shares of company stock valued at $205,781,777 in the last quarter. 6.48% of the stock is currently owned by 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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