Datadog, Inc. $DDOG Shares Sold by California State Teachers Retirement System

Key Points

• California State Teachers Retirement System cut its Datadog stake by 2.3%, selling 10,490 shares and retaining 447,148 shares valued at approximately $52.8 million. Institutional investors and hedge funds collectively own 78.29% of DDOG.
• Datadog reported strong recent results, with revenue rising 32.1% year over year to $1.01 billion and EPS of $0.60, exceeding estimates. Analysts remain broadly bullish, with a consensus “Moderate Buy” rating and an average price target of $264.84.
• Valuation and insider selling are key risks: DDOG trades near its 52-week high with a P/E ratio above 700, while insiders sold roughly 1.49 million shares worth $343 million in the last quarter, mostly through pre-arranged trading plans.

California State Teachers Retirement System lessened its holdings in Datadog, Inc. (NASDAQ:DDOG - Free Report) by 2.3% during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 447,148 shares of the company's stock after selling 10,490 shares during the quarter. California State Teachers Retirement System owned approximately 0.13% of Datadog worth $52,786,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors also recently bought and sold shares of DDOG. Brighton Jones LLC purchased a new position in shares of Datadog in the 4th quarter valued at about $209,000. Bison Wealth LLC purchased a new stake in Datadog during the fourth quarter worth approximately $228,000. Empowered Funds LLC boosted its holdings in Datadog by 7.0% in the first quarter. Empowered Funds LLC now owns 10,313 shares of the company's stock valued at $1,023,000 after purchasing an additional 672 shares in the last quarter. Geneos Wealth Management Inc. boosted its holdings in Datadog by 17.6% in the first quarter. Geneos Wealth Management Inc. now owns 769 shares of the company's stock valued at $76,000 after purchasing an additional 115 shares in the last quarter. Finally, Sivia Capital Partners LLC purchased a new position in Datadog in the second quarter valued at approximately $509,000. 78.29% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting Datadog

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Wall Street expects continued growth in Datadog’s upcoming report. The company’s previous quarter included $1.01 billion in revenue, up 32.1% year over year, and adjusted EPS of $0.60 versus the $0.51 consensus. Current guidance calls for second-quarter EPS of $0.57–$0.59. Datadog earnings expectations
• Positive Sentiment: Datadog’s rising use of multi-year customer contracts increased remaining performance obligations 51% to $3.48 billion. The backlog provides greater revenue visibility and supports confidence in the company’s 2026 outlook. Datadog multi-year contracts
• Positive Sentiment: Analyst sentiment remains broadly bullish. BTIG raised its price target to $289 from $255, while TD Cowen and Oppenheimer have set targets of $300. Investors are also responding to Datadog’s AI-related product expansion and its partnership with Cloudaware, which adds cloud-log coverage capabilities through the Datadog Marketplace. Cloudaware and Datadog partnership
• Neutral Sentiment: DDOG is trading near its 52-week high after a substantial six-month advance. Although institutional ownership and recent buying support demand, the stock’s very elevated valuation leaves limited room for an earnings disappointment.
• Negative Sentiment: Insiders continue to sell shares, including a 20,000-share sale by Director Amit Agarwal for approximately $4.9 million. The transaction was made under a pre-arranged Rule 10b5-1 plan, reducing its bearish significance, but broad insider selling could still weigh on sentiment.

Datadog Price Performance

Shares of NASDAQ DDOG opened at $268.56 on Friday. The stock has a market cap of $95.60 billion, a P/E ratio of 706.76, a P/E/G ratio of 26.77 and a beta of 1.54. Datadog, Inc. has a twelve month low of $98.01 and a twelve month high of $278.70. The stock has a 50 day moving average of $245.02 and a two-hundred day moving average of $172.33. 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 (NASDAQ:DDOG - Get Free Report) last announced its earnings results on Thursday, May 7th. The company reported $0.60 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.51 by $0.09. The business had revenue of $1.01 billion for the quarter, compared to analyst estimates of $960.12 million. Datadog had a net margin of 3.69% and a return on equity of 4.83%. The company's revenue for the quarter was up 32.1% compared to the same quarter last year. During the same period last year, the firm posted $0.46 earnings per share. Datadog has set its FY 2026 guidance at 2.360-2.440 EPS and its Q2 2026 guidance at 0.570-0.590 EPS. On average, research analysts forecast that Datadog, Inc. will post 0.64 earnings per share for the current year.

Analyst Ratings Changes

A number of analysts have weighed in on DDOG shares. Bank of America raised their price objective on shares of Datadog from $260.00 to $280.00 and gave the stock a "buy" rating in a report on Monday, June 8th. Scotiabank upped their target price on shares of Datadog from $225.00 to $275.00 and gave the company an "outperform" rating in a report on Thursday, June 18th. Benchmark reaffirmed a "buy" rating on shares of Datadog in a research report on Tuesday. Sanford C. Bernstein lowered shares of 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 research note on Monday, July 6th. Finally, Wolfe Research reissued an "outperform" rating and issued a $295.00 price target on shares of Datadog in a research report on Thursday, June 11th. Two analysts have rated the stock with a Strong Buy rating, thirty-nine have issued a Buy rating, three have given a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, Datadog presently has a consensus rating of "Moderate Buy" and an average price target of $264.84.

Insider Buying and Selling at Datadog

In other news, Director Amit Agarwal sold 20,000 shares of the company's stock in a transaction dated Thursday, July 23rd. The shares were sold at an average price of $244.87, for a total value of $4,897,400.00. Following the completion of the sale, the director directly owned 1,640 shares of the company's stock, valued at approximately $401,586.80. This represents a 92.42% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Alexis Le-Quoc sold 43,224 shares of the stock in a transaction dated Monday, July 20th. The stock was sold at an average price of $265.23, for a total transaction of $11,464,301.52. Following the sale, the chief technology officer owned 509,805 shares of the company's stock, valued at $135,215,580.15. This trade represents a 7.82% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 1,486,587 shares of company stock worth $342,962,652 in the last quarter. 6.48% of the stock is currently owned by company 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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