Franklin Resources Inc. Lowers Stock Holdings in Datadog, Inc. $DDOG

Key Points

• Franklin Resources cut its Datadog stake by 10.4% in Q3, selling 248,151 shares and holding 2,143,887 shares (about 0.61%) valued at $305.29 million.
• Insider selling was substantial: CTO Alexis Le‑Quoc sold ~53,912 shares and director Amit Agarwal sold 20,000 shares, with insiders offloading 366,534 shares (~$45.6M) in the last quarter, which may weigh on near‑term sentiment.
• Operational/analyst snapshot: Datadog beat recent estimates with $0.59 EPS and $953.2M revenue (+29.2% YoY), issued FY2026 EPS guidance of 2.080–2.160, and carries a "Moderate Buy" consensus with an average price target of $179.62.

Franklin Resources Inc. reduced its stake in Datadog, Inc. (NASDAQ:DDOG - Free Report) by 10.4% during the third quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 2,143,887 shares of the company's stock after selling 248,151 shares during the period. Franklin Resources Inc. owned 0.61% of Datadog worth $305,290,000 at the end of the most recent reporting period.

A number of other institutional investors have also modified their holdings of the stock. Westside Investment Management Inc. increased its holdings in Datadog by 74.3% during the 3rd quarter. Westside Investment Management Inc. now owns 176 shares of the company's stock worth $27,000 after purchasing an additional 75 shares during the period. Rothschild Investment LLC lifted its holdings in shares of Datadog by 126.6% in the 3rd quarter. Rothschild Investment LLC now owns 179 shares of the company's stock worth $25,000 after buying an additional 100 shares during the period. Tripletail Wealth Management LLC purchased a new stake in shares of Datadog in the 3rd quarter worth $28,000. Physician Wealth Advisors Inc. grew its position in shares of Datadog by 315.2% during the 3rd quarter. Physician Wealth Advisors Inc. now owns 191 shares of the company's stock worth $27,000 after buying an additional 145 shares in the last quarter. Finally, Hazlett Burt & Watson Inc. bought a new position in shares of Datadog during the 3rd quarter worth $28,000. 78.29% of the stock is owned by hedge funds and other institutional investors.

Datadog Price Performance

Shares of DDOG stock opened at $127.16 on Friday. The stock's 50-day moving average is $123.25 and its 200 day moving average is $141.63. Datadog, Inc. has a 1-year low of $81.63 and a 1-year high of $201.69. The company has a debt-to-equity ratio of 0.26, a current ratio of 3.38 and a quick ratio of 3.38. The company has a market cap of $44.83 billion, a P/E ratio of 410.19, a PEG ratio of 35.04 and a beta of 1.31.

Datadog (NASDAQ:DDOG - Get Free Report) last announced its earnings results on Tuesday, February 10th. The company reported $0.59 EPS for the quarter, topping analysts' consensus estimates of $0.55 by $0.04. The business had revenue of $953.19 million during the quarter, compared to the consensus estimate of $916.53 million. Datadog had a net margin of 3.14% and a return on equity of 4.14%. The firm's revenue was up 29.2% on a year-over-year basis. During the same period in the previous year, the company posted $0.49 earnings per share. Datadog has set its FY 2026 guidance at 2.080-2.160 EPS and its Q1 2026 guidance at 0.490-0.510 EPS. Research analysts predict that Datadog, Inc. will post 0.34 earnings per share for the current fiscal year.

Analysts Set New Price Targets

DDOG has been the subject of several recent research reports. Scotiabank decreased their price objective on Datadog from $180.00 to $160.00 and set a "sector outperform" rating for the company in a report on Wednesday, February 11th. Royal Bank Of Canada dropped their target price on shares of Datadog from $175.00 to $150.00 and set an "outperform" rating on the stock in a report on Monday, February 9th. Raymond James Financial cut their target price on shares of Datadog from $205.00 to $170.00 and set an "outperform" rating on the stock in a research report on Tuesday, February 10th. Moffett Nathanson restated a "buy" rating on shares of Datadog in a report on Monday, December 29th. Finally, Mizuho lowered their price target on shares of Datadog from $200.00 to $170.00 and set an "outperform" rating for the company in a research report on Wednesday, January 21st. Thirty-six research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, Datadog has an average rating of "Moderate Buy" and an average price target of $179.62.

Insider Activity

In related news, Director Amit Agarwal sold 20,000 shares of the business's stock in a transaction that occurred on Monday, March 9th. The shares were sold at an average price of $124.81, for a total transaction of $2,496,200.00. Following the completion of the transaction, the director owned 1,640 shares in the company, valued at $204,688.40. The trade was a 92.42% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CTO Alexis Le-Quoc sold 53,912 shares of the stock in a transaction that occurred on Tuesday, March 10th. The shares were sold at an average price of $125.49, for a total transaction of $6,765,416.88. Following the sale, the chief technology officer directly owned 437,257 shares of the company's stock, valued at $54,871,380.93. The trade was a 10.98% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 366,534 shares of company stock worth $45,609,464 in the last quarter. 6.67% of the stock is currently owned by corporate insiders.

More Datadog News

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Strong short‑term momentum: Datadog had a multi‑day winning streak (~+16% over five days), signaling renewed investor interest and flow into the name. Why Investors Are Flocking Back To DDOG Stock?
• Positive Sentiment: Product expansion into AI observability: Datadog launched an MCP Server to provide secure, real‑time observability for AI agent workflows — a direct product push into AI‑native enterprise use cases. Datadog Targets AI Agent Workflows
• Positive Sentiment: Strategic partnership: Cohesity integration announced to combine observability with rapid data recovery for AI production environments, which can deepen enterprise adoption for AI‑heavy workloads. Cohesity Partners with Datadog
• Positive Sentiment: Analyst upgrade: A Seeking Alpha piece argues for an upgrade to "Buy" on durable revenue growth, high retention and attractive usage‑based economics — a narrative that supports multiple expansion over time. Vibe‑Coding Won't Kill Datadog
• Neutral Sentiment: Increased media/analyst attention (Zacks, Yahoo) can drive flows and volatility but does not change fundamentals by itself. Why Is Datadog Up Since Last Earnings?
• Neutral Sentiment: Reported short‑interest data in feeds shows zero shares/NaN changes — this appears to be a reporting error and is not a material indicator of increased short exposure.
• Negative Sentiment: Insider selling — CTO Alexis Le‑Quoc sold ~53.5k shares (multiple filings), trimming his stake by ~11%; such large insider sales can weigh on near‑term sentiment despite company performance. SEC filing: SEC Form 4
• Negative Sentiment: Director Amit Agarwal sold 20,000 shares at ~$124.81, representing a large reduction in his holdings; additional director sales amplify near‑term negative sentiment. SEC filing: SEC Form 4

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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