Datadog, Inc. $DDOG Stake Lessened by Bank of New York Mellon Corp

Key Points

• Bank of New York Mellon trimmed its Datadog stake by 9% in the fourth quarter, selling about 201,741 shares and ending with roughly 2.03 million shares valued at $276.2 million.
• Insider selling also weighed on sentiment: CFO David M. Obstler and CTO Alexis Le-Quoc each sold shares on June 2, and insiders sold more than 1.0 million shares worth about $182.2 million over the last quarter.
• Despite the selling, Datadog reported better-than-expected Q1 results with EPS of $0.60 and revenue of $1.01 billion, while analysts remain largely constructive with a consensus rating of “Moderate Buy” and an average price target of $219.69.

Bank of New York Mellon Corp cut its stake in Datadog, Inc. (NASDAQ:DDOG - Free Report) by 9.0% in the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 2,030,737 shares of the company's stock after selling 201,741 shares during the period. Bank of New York Mellon Corp owned approximately 0.58% of Datadog worth $276,160,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also made changes to their positions in the stock. Westpac Banking Corp boosted its holdings in shares of Datadog by 33.9% in the fourth quarter. Westpac Banking Corp now owns 23,975 shares of the company's stock valued at $3,260,000 after acquiring an additional 6,069 shares in the last quarter. Bridges Investment Management Inc. boosted its holdings in shares of Datadog by 37.6% in the fourth quarter. Bridges Investment Management Inc. now owns 3,419 shares of the company's stock valued at $465,000 after acquiring an additional 934 shares in the last quarter. Dynasty Wealth Management LLC boosted its holdings in shares of Datadog by 17.5% in the fourth quarter. Dynasty Wealth Management LLC now owns 1,892 shares of the company's stock valued at $257,000 after acquiring an additional 282 shares in the last quarter. Natixis Advisors LLC boosted its holdings in shares of Datadog by 19.2% in the fourth quarter. Natixis Advisors LLC now owns 46,987 shares of the company's stock valued at $6,390,000 after acquiring an additional 7,558 shares in the last quarter. Finally, AXQ Capital LP bought a new stake in Datadog during the fourth quarter worth approximately $564,000. 78.29% of the stock is currently owned by institutional investors.

Insiders Place Their Bets

In related news, CFO David M. Obstler sold 16,323 shares of the company's stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $267.15, for a total value of $4,360,689.45. Following the completion of the sale, the chief financial officer owned 509,591 shares in the company, valued at approximately $136,137,235.65. This represents a 3.10% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CTO Alexis Le-Quoc sold 21,506 shares of the company's stock in a transaction that occurred on 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 sale, the chief technology officer owned 509,805 shares of the company's stock, valued at approximately $136,194,405.75. This trade represents a 4.05% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 1,023,526 shares of company stock worth $182,246,367 in the last quarter. Corporate insiders own 6.48% of the company's stock.

Datadog Stock Down 2.7%

Shares of NASDAQ:DDOG opened at $243.60 on Friday. The company has a debt-to-equity ratio of 0.25, a quick ratio of 3.40 and a current ratio of 3.40. The company has a market cap of $86.71 billion, a PE ratio of 641.07, a price-to-earnings-growth ratio of 26.80 and a beta of 1.56. Datadog, Inc. has a 52 week low of $98.01 and a 52 week high of $278.70. The firm has a 50 day simple moving average of $164.88 and a 200 day simple moving average of $144.65.

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

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on DDOG. BMO Capital Markets raised their target price on shares of Datadog from $165.00 to $220.00 and gave the stock an "outperform" rating in a report on Friday, May 8th. Morgan Stanley raised their target price on shares of Datadog from $180.00 to $225.00 and gave the stock an "overweight" rating in a report on Friday, May 8th. Raymond James Financial raised their target price on shares of Datadog from $170.00 to $220.00 in a report on Thursday, May 7th. UBS Group raised their target price on shares of Datadog from $195.00 to $220.00 and gave the stock a "buy" rating in a report on Friday, May 8th. Finally, DA Davidson set a $250.00 target price on shares of Datadog in a report on Friday, May 22nd. One investment analyst has rated the stock with a Strong Buy rating, forty have assigned a Buy rating, one has issued a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat.com, Datadog presently has an average rating of "Moderate Buy" and a consensus price target of $219.69.

Key Stories Impacting Datadog

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Datadog was highlighted as one of the most-upgraded software stocks last month, reinforcing confidence in its growth outlook and the AI-driven rebound in software sentiment. 3 Most Upgraded Stocks Last Month According to MarketBeat (DDOG)
• Positive Sentiment: Commentary that software stocks are rebounding as investors see AI as a growth catalyst supports the broader bull case for DDOG. DDOG, ORCL, MSFT emerge as top software stock picks as the sector rebounds: report
• Neutral Sentiment: Datadog’s presentation at the Bank of America 2026 Global Technology Conference may have kept the company in focus, but no new material catalyst was highlighted in the headline provided. Datadog, Inc. (DDOG) Presents at Bank of America 2026 Global Technology Conference Transcript
• Negative Sentiment: Recent insider selling by senior executives, especially the CTO’s large share sales, is likely the biggest near-term drag on investor sentiment. SEC insider filing

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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