Employees Provident Fund Board Makes New Investment in Datadog, Inc. $DDOG

Key Points

• Employees Provident Fund Board disclosed a new stake in Datadog, buying 1.85 million shares worth about $251.6 million. The position makes DDOG its 16th-largest holding and represents about 1.8% of its portfolio.
• Sentiment from analysts remains bullish: Truist upgraded Datadog to Buy with a $300 target, while Scotiabank, Citigroup, and Capital One also raised their price targets amid expectations for continued AI-driven demand.
• Datadog’s recent earnings and guidance were solid, with Q1 EPS of $0.60 topping estimates and revenue rising 32.1% year over year to $1.01 billion. However, recent insider selling by top executives may be weighing on sentiment even though the trades were pre-planned.

Employees Provident Fund Board purchased a new stake in Datadog, Inc. (NASDAQ:DDOG - Free Report) in the 4th quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor purchased 1,850,000 shares of the company's stock, valued at approximately $251,582,000. Datadog accounts for approximately 1.8% of Employees Provident Fund Board's holdings, making the stock its 16th largest position. Employees Provident Fund Board owned 0.52% of Datadog as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also made changes to their positions in DDOG. Brighton Jones LLC purchased a new position in Datadog in the fourth quarter worth approximately $209,000. Bison Wealth LLC purchased a new stake in Datadog in the fourth quarter valued at $228,000. Empowered Funds LLC raised its position 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 during the period. Geneos Wealth Management Inc. lifted its stake in shares of Datadog by 17.6% in the 1st quarter. Geneos Wealth Management Inc. now owns 769 shares of the company's stock valued at $76,000 after purchasing an additional 115 shares during the last quarter. Finally, Sivia Capital Partners LLC acquired a new position in shares of Datadog in the 2nd quarter valued at $509,000. Institutional investors and hedge funds own 78.29% of the company's stock.

Key Stories Impacting Datadog

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Truist upgraded Datadog to Buy from Hold and lifted its price target to $300, citing stronger demand tied to AI observability, cloud monitoring, and security products. Truist upgrades Datadog to Buy from Neutral
• Positive Sentiment: Scotiabank raised its target to $275 from $225 and kept a Sector Outperform rating, reinforcing expectations for further upside. Scotiabank adjusts price target on Datadog to 275 from 225
• Positive Sentiment: Other recent broker actions were also constructive, with Citigroup and Capital One lifting targets to $270 and $268, respectively, as analysts continue to point to durable AI-driven demand. Citi raises Datadog target to 270 citing durable AI-driven demand
• Neutral Sentiment: Coverage around Datadog’s strong Q1 results and observability consolidation strategy remains supportive, but it largely reiterates the company’s existing growth story rather than introducing a new catalyst. Can Observability Consolidation Create a Larger Opportunity for DDOG?
• Negative Sentiment: Recent insider selling by CEO Olivier Pomel and General Counsel Kerry Acocella may be creating some sentiment pressure, even though the trades were made under pre-arranged 10b5-1 plans. Datadog insider trade details

Analyst Ratings Changes

DDOG has been the subject of a number of research analyst reports. Rothschild & Co Redburn began coverage on Datadog in a report on Thursday, April 23rd. They set a "buy" rating and a $170.00 price target for the company. Benchmark upped their target price on shares of Datadog from $230.00 to $260.00 and gave the company a "buy" rating in a research report on Thursday, June 11th. Jefferies Financial Group raised shares of Datadog from a "buy" rating to a "buy" rating in a research report on Monday. Guggenheim increased their target price on shares of Datadog from $175.00 to $225.00 and gave the stock a "buy" rating in a research note on Thursday, May 7th. Finally, Sanford C. Bernstein reiterated an "outperform" rating on shares of Datadog in a research report on Friday, June 12th. One research analyst has rated the stock with a Strong Buy rating, forty-one have assigned a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $239.48.

Insider Transactions at Datadog

In related news, CFO David M. Obstler sold 75,000 shares of the business's stock in a transaction on Monday, June 8th. The stock was sold at an average price of $231.69, for a total transaction of $17,376,750.00. Following the completion of the transaction, the chief financial officer directly owned 434,591 shares of the company's stock, valued at $100,690,388.79. The trade was a 14.72% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Alexis Le-Quoc sold 53,912 shares of the company's stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $271.05, for a total value of $14,612,847.60. Following the sale, the chief technology officer owned 531,311 shares in the company, valued at approximately $144,011,846.55. This trade represents a 9.21% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 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 sold a total of 1,444,558 shares of company stock valued at $299,060,922 in the last 90 days. Insiders own 6.48% of the company's stock.

Datadog Price Performance

Datadog stock opened at $223.00 on Friday. The company has a quick ratio of 3.40, a current ratio of 3.40 and a debt-to-equity ratio of 0.25. Datadog, Inc. has a 52-week low of $98.01 and a 52-week high of $278.70. The firm has a market cap of $79.38 billion, a PE ratio of 586.86, a price-to-earnings-growth ratio of 23.88 and a beta of 1.56. The company's 50 day moving average is $189.22 and its two-hundred day moving average is $149.77.

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

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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