Datadog, Inc. $DDOG Shares Bought by Rakuten Investment Management Inc.

Key Points

• Rakuten Investment Management increased its Datadog stake by 11.4% in the third quarter, adding 8,955 shares to bring its holdings to 87,823 shares, valued at about $23.6 million.
• Datadog insiders sold 765,293 shares worth approximately $180.2 million over the past three months. CEO Olivier Pomel’s reported sale was made under a pre-arranged Rule 10b5-1 trading plan.
• Datadog beat quarterly earnings and revenue estimates, with revenue up 35.6% year over year; analysts’ consensus rating was “Moderate Buy,” with an average price target of $287.98.

Rakuten Investment Management Inc. increased its stake in shares of Datadog, Inc. (NASDAQ:DDOG - Free Report) by 11.4% in the 3rd quarter, according to its most recent 13F filing with the SEC. The firm owned 87,823 shares of the company's stock after buying an additional 8,955 shares during the period. Rakuten Investment Management Inc.'s holdings in Datadog were worth $23,586,000 as of its most recent filing with the SEC.

Several other large investors have also recently bought and sold shares of the stock. EMC Capital Management bought a new stake in shares of Datadog during the second quarter worth approximately $28,000. Cornerstone Financial Management LLC grew its position in shares of Datadog by 54.9% in the second quarter. Cornerstone Financial Management LLC now owns 127 shares of the company's stock valued at $33,000 after purchasing an additional 45 shares during the last quarter. Annis Gardner Whiting Capital Advisors LLC increased its stake in shares of Datadog by 341.7% during the first quarter. Annis Gardner Whiting Capital Advisors LLC now owns 318 shares of the company's stock worth $38,000 after purchasing an additional 246 shares during the period. Elevation Wealth Partners LLC increased its stake in shares of Datadog by 2,700.0% during the second quarter. Elevation Wealth Partners LLC now owns 168 shares of the company's stock worth $44,000 after purchasing an additional 162 shares during the period. Finally, Armstrong Advisory Group Inc. bought a new position in shares of Datadog during the third quarter worth approximately $46,000. 78.29% of the stock is owned by institutional investors.

Insiders Place Their Bets

In other Datadog news, CEO Olivier Pomel sold 89,497 shares of the business's stock in a transaction dated Tuesday, September 8th. The stock was sold at an average price of $207.86, for a total transaction of $18,602,846.42. Following the completion of the transaction, the chief executive officer owned 586,416 shares of the company's stock, valued at approximately $121,892,429.76. The trade was a 13.24% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Matthew Jacobson sold 39,912 shares of the business's stock in a transaction dated Thursday, August 13th. The stock was sold at an average price of $250.55, for a total value of $9,999,951.60. Following the transaction, the director directly owned 544,220 shares of the company's stock, valued at approximately $136,354,321. The trade was a 6.83% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 765,293 shares of company stock worth $180,233,548. Insiders own 6.48% of the company's stock.

Datadog Stock Performance

Shares of Datadog stock opened at $220.52 on Wednesday. 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 company has a market cap of $79.18 billion, a PE ratio of 450.05, a price-to-earnings-growth ratio of 21.09 and a beta of 1.50. The company has a 50 day moving average of $250.77 and a 200-day moving average of $199.09. Datadog, Inc. has a 1-year low of $98.01 and a 1-year high of $300.68.

Datadog (NASDAQ:DDOG - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The company reported $0.65 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.58 by $0.07. Datadog had a net margin of 4.48% and a return on equity of 5.67%. The business had revenue of $1.12 billion for the quarter, compared to analysts' expectations of $1.08 billion. During the same period last year, the firm 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. As a group, equities research analysts forecast that Datadog, Inc. will post 0.70 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on DDOG shares. Mizuho lifted their target price on Datadog from $300.00 to $330.00 and gave the stock an "outperform" rating in a report on Thursday, October 15th. Sanford C. Bernstein upgraded shares of Datadog from a "market perform" rating to an "outperform" rating and upped their price target for the company from $237.00 to $350.00 in a research note on Monday, October 19th. Zacks Research lowered shares of Datadog from a "strong-buy" rating to a "hold" rating in a research report on Monday, August 17th. Benchmark reiterated a "buy" rating on shares of Datadog in a research note on Tuesday, July 28th. Finally, Royal Bank Of Canada boosted their price objective on shares of Datadog from $280.00 to $320.00 and gave the company an "outperform" rating in a report on Monday, October 12th. Three equities research analysts have rated the stock with a Strong Buy rating, forty have assigned a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Datadog has a consensus rating of "Moderate Buy" and a consensus target price of $287.98.

Key Headlines Impacting Datadog

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Analysts see potential for another beat-and-raise quarter. Expectations include roughly 28.9% revenue growth, supported by AI-related demand and adoption of multiple Datadog products; Wedbush is also optimistic about the report. Datadog Likely to Deliver Another Beat-and-Raise Quarter, Wedbush Says Datadog Before Q3 Earnings: What's in the Cards for the Stock?
• Positive Sentiment: Evercore ISI raised its price target to $300, adding to the positive analyst backdrop ahead of earnings. Datadog Price Target Raised to $300 at Evercore ISI
• Neutral Sentiment: Datadog’s CTO sold $12.06 million of shares under a preset trading plan. The planned sale may attract attention but does not, by itself, indicate a change in the company’s outlook. Datadog CTO sells stock under a preset trading plan
• Negative Sentiment: Risks include a major customer reducing usage and a high valuation that leaves little room for an earnings or growth disappointment. One analysis cautioned that investors want proof the AI opportunity is translating into durable results. Datadog: Good AI Story, But I Still Need Proof
• Negative Sentiment: Cloud-software stocks have faced concerns about AI spending and growth deceleration; Datadog also came under pressure amid a broader tech selloff. That cautious sector mood could weigh on shares even if earnings expectations are favorable. Palantir Falls Despite Earnings Beat; Datadog and Snowflake Also Slide

Datadog Company Profile

Datadog, Inc is a technology company that provides a cloud-based monitoring and security platform for applications, infrastructure and other technology environments. Its platform helps organizations collect, analyze and visualize data from servers, databases, containers, cloud services, applications and user interactions in a unified environment.

Datadog's products include infrastructure monitoring, application performance monitoring, log management, real user monitoring, synthetic monitoring, network performance monitoring, cloud security, software delivery tools and incident-management capabilities.

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