Datadog, Inc. $DDOG Shares Acquired by Envestnet Portfolio Solutions Inc.

Key Points

• Institutional interest increased: Envestnet Portfolio Solutions expanded its Datadog stake by 1,024.3% in the second quarter to 56,721 shares valued at $14.8 million. Institutional investors and hedge funds collectively own 78.29% of DDOG.
• Analyst sentiment remains favorable: Datadog has a consensus “Moderate Buy” rating and an average price target of $276.66, with several analysts recently raising targets or upgrading the stock.
• Strong results but elevated valuation: Quarterly revenue rose 35.6% year over year to $1.12 billion, beating estimates, while EPS also exceeded expectations. However, the stock trades at a very high P/E ratio of 513.26, and recent insider sales—including transactions by the CEO and CFO—remain a consideration for investors.

Envestnet Portfolio Solutions Inc. lifted its stake in Datadog, Inc. (NASDAQ:DDOG - Free Report) by 1,024.3% during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 56,721 shares of the company's stock after buying an additional 51,676 shares during the period. Envestnet Portfolio Solutions Inc.'s holdings in Datadog were worth $14,768,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also recently bought and sold shares of DDOG. Geode Capital Management LLC grew its holdings in shares of Datadog by 2.2% during the fourth quarter. Geode Capital Management LLC now owns 9,056,086 shares of the company's stock worth $1,227,184,000 after purchasing an additional 197,816 shares during the last quarter. Janus Henderson Group PLC increased its position in Datadog by 22.8% during the first quarter. Janus Henderson Group PLC now owns 7,749,569 shares of the company's stock worth $905,570,000 after buying an additional 1,439,082 shares during the period. Norges Bank acquired a new position in Datadog during the fourth quarter worth approximately $469,461,000. First Trust Advisors LP lifted its stake in Datadog by 81.5% in the first quarter. First Trust Advisors LP now owns 3,685,562 shares of the company's stock valued at $435,081,000 after buying an additional 1,654,429 shares during the last quarter. Finally, Bank of New York Mellon Corp lifted its stake in Datadog by 30.3% in the first quarter. Bank of New York Mellon Corp now owns 2,645,827 shares of the company's stock valued at $312,340,000 after buying an additional 615,090 shares during the last quarter. 78.29% of the stock is currently owned by institutional investors and hedge funds.

More Datadog News

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Datadog gained while the overall market weakened, indicating continued investor demand for its cloud monitoring and observability growth story. Datadog Gains As Market Dips: What You Should Know
• Positive Sentiment: The consensus price target for Datadog was reportedly raised by 12%, providing a favorable valuation signal and potentially supporting the stock. Datadog Consensus Price Target Increased
• Neutral Sentiment: CFO David Obstler sold shares worth approximately $3.9 million in two reported transactions, but the sales were made under a pre-arranged Rule 10b5-1 plan. He still owned about 368,067 shares afterward, reducing the likelihood that the transactions signal a change in management’s outlook. SEC Insider Transaction Filing
• Negative Sentiment: A comparison with Fortinet highlighted risks for Datadog, including its substantially richer valuation and possible near-term customer pressure. Fortinet was characterized as offering stronger billings growth, cash flow, and valuation support, while Datadog retains faster revenue growth. Fortinet vs. Datadog: Which Cloud Security Stock Has Better Potential?

Wall Street Analysts Forecast Growth

A number of equities analysts have recently issued reports on DDOG shares. Needham & Company LLC raised their target price on shares of Datadog from $260.00 to $300.00 and gave the stock a "buy" rating in a research report on Friday, August 7th. Sanford C. Bernstein downgraded shares of Datadog from an "outperform" rating to a "market perform" rating and upped their price target for the company from $180.00 to $226.00 in a research report on Monday, July 6th. Truist Financial upgraded shares of Datadog from a "hold" rating to a "buy" rating and increased their price target for the stock from $190.00 to $300.00 in a research note on Monday, June 15th. Evercore raised their price objective on shares of Datadog from $225.00 to $265.00 and gave the stock an "outperform" rating in a research report on Wednesday, June 10th. Finally, Wedbush began coverage on shares of Datadog in a research note on Friday, September 11th. They issued an "outperform" rating and a $275.00 price objective on the stock. Two investment analysts have rated the stock with a Strong Buy rating, thirty-eight have given a Buy rating, four have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $276.66.

Datadog Stock Performance

NASDAQ DDOG opened at $251.49 on Thursday. Datadog, Inc. has a 12-month low of $98.01 and a 12-month high of $292.72. The company has a current ratio of 3.20, a quick ratio of 3.20 and a debt-to-equity ratio of 0.23. The business's 50 day moving average is $241.70 and its two-hundred day moving average is $204.34. The stock has a market capitalization of $90.30 billion, a price-to-earnings ratio of 513.26, a PEG ratio of 24.15 and a beta of 1.49.

Datadog (NASDAQ:DDOG - Get Free Report) last issued its earnings results on Thursday, August 6th. The company reported $0.65 EPS for the quarter, topping the consensus estimate of $0.58 by $0.07. Datadog had a net margin of 4.48% and a return on equity of 5.67%. The company had revenue of $1.12 billion for the quarter, compared to analyst estimates of $1.08 billion. During the same period in the previous year, the firm earned $0.46 EPS. The business's revenue was up 35.6% on a year-over-year basis. Datadog has set its Q3 2026 guidance at 0.630-0.650 EPS and its FY 2026 guidance at 2.500-2.540 EPS. Research analysts expect that Datadog, Inc. will post 0.7 EPS for the current year.

Insider Activity

In other Datadog news, CFO David Obstler sold 40,000 shares of the firm's stock in a transaction dated Monday, September 14th. The shares were sold at an average price of $227.47, for a total transaction of $9,098,800.00. Following the completion of the transaction, the chief financial officer directly owned 378,067 shares in the company, valued at approximately $85,998,900.49. This trade represents a 9.57% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Olivier Pomel sold 127,141 shares of the company's stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $286.71, for a total transaction of $36,452,596.11. Following the completion of the sale, the chief executive officer directly owned 612,747 shares in the company, valued at $175,680,692.37. This trade represents a 17.18% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 1,013,764 shares of company stock worth $246,668,350 over the last 90 days. 6.48% of the stock is currently owned by corporate insiders.

Datadog Profile

Datadog, Inc NASDAQ: DDOG is a cloud-based software company that provides monitoring, observability, security and analytics tools for modern applications and information technology environments. Its platform helps organizations collect, correlate and analyze data from servers, databases, applications, containers, networks and cloud services in a unified environment.

The company's products include infrastructure monitoring, application performance monitoring, log management, real user and synthetic monitoring, database monitoring, cloud security, software delivery tools, incident management and cloud cost management.

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