GAMMA Investing LLC Increases Stock Holdings in Datadog, Inc. $DDOG

Key Points

• GAMMA Investing LLC increased its Datadog position by 344.8% in the third quarter, adding 30,322 shares for a total holding of 39,116 shares valued at approximately $10.7 million. Institutional investors collectively own 78.29% of DDOG.
• Analyst sentiment remains favorable, with Datadog receiving a consensus “Moderate Buy” rating and an average price target of $277.73; several firms recently raised their targets to between $289 and $300.
• Datadog exceeded quarterly expectations with $0.65 in adjusted EPS and $1.12 billion in revenue, up 35.6% year over year. However, insiders sold 938,076 shares worth roughly $226.7 million during the last quarter.

GAMMA Investing LLC lifted its position in Datadog, Inc. (NASDAQ:DDOG - Free Report) by 344.8% in the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 39,116 shares of the company's stock after buying an additional 30,322 shares during the quarter. GAMMA Investing LLC's holdings in Datadog were worth $10,712,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Janus Henderson Group PLC grew its position in shares of Datadog by 22.8% in the 1st quarter. Janus Henderson Group PLC now owns 7,749,569 shares of the company's stock valued at $905,570,000 after acquiring an additional 1,439,082 shares during the period. First Trust Advisors LP raised its holdings in shares of Datadog by 81.5% in the 1st quarter. First Trust Advisors LP now owns 3,685,562 shares of the company's stock valued at $435,081,000 after purchasing an additional 1,654,429 shares during the period. Bank of New York Mellon Corp raised its holdings in shares of Datadog by 30.3% in the 1st quarter. Bank of New York Mellon Corp now owns 2,645,827 shares of the company's stock valued at $312,340,000 after purchasing an additional 615,090 shares during the period. Employees Provident Fund Board acquired a new stake in Datadog in the 4th quarter valued at about $251,582,000. Finally, Arrowstreet Capital Limited Partnership grew its holdings in Datadog by 162.2% during the first quarter. Arrowstreet Capital Limited Partnership now owns 1,571,018 shares of the company's stock worth $185,459,000 after purchasing an additional 971,910 shares during the period. 78.29% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

Several analysts have issued reports on DDOG shares. Weiss Ratings upgraded Datadog from a "sell (d+)" rating to a "hold (c)" rating in a research note on Wednesday, August 12th. BTIG Research boosted their target price on Datadog from $255.00 to $289.00 and gave the stock a "buy" rating in a report on Tuesday, July 28th. Barclays increased their price target on Datadog from $260.00 to $290.00 and gave the company an "overweight" rating in a research note on Tuesday, July 21st. TD Cowen raised their price target on Datadog from $260.00 to $300.00 and gave the company a "buy" rating in a report on Wednesday, July 22nd. Finally, Craig Hallum initiated coverage on shares of Datadog in a research report on Monday, June 15th. They set a "buy" rating for the company. Three investment analysts have rated the stock with a Strong Buy rating, thirty-eight have issued a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $277.73.

Insiders Place Their Bets

In related news, CEO Olivier Pomel sold 127,141 shares of the business's stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $286.71, for a total value of $36,452,596.11. Following the completion of the sale, the chief executive officer directly owned 612,747 shares in the company, valued at approximately $175,680,692.37. The trade was a 17.18% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO David Obstler sold 40,000 shares of the firm's stock in a transaction on Monday, September 14th. The stock was sold at an average price of $227.47, for a total value of $9,098,800.00. Following the transaction, the chief financial officer owned 378,067 shares in the company, valued at approximately $85,998,900.49. This trade represents a 9.57% 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. Insiders have sold a total of 938,076 shares of company stock worth $226,690,473 in the last quarter. Corporate insiders own 6.48% of the company's stock.

Datadog Stock Performance

Shares of NASDAQ DDOG opened at $273.80 on Friday. The company has a debt-to-equity ratio of 0.23, a current ratio of 3.20 and a quick ratio of 3.20. The firm has a market cap of $98.32 billion, a price-to-earnings ratio of 558.79, a P/E/G ratio of 26.48 and a beta of 1.51. The stock's fifty day moving average price is $245.27 and its two-hundred day moving average price is $215.54. Datadog, Inc. has a one year low of $98.01 and a one year high of $292.72.

Datadog (NASDAQ:DDOG - Get Free Report) last posted its earnings results on Thursday, August 6th. The company reported $0.65 earnings per share for the quarter, topping analysts' consensus estimates of $0.58 by $0.07. Datadog had a return on equity of 5.67% and a net margin of 4.48%.The company had revenue of $1.12 billion during the quarter, compared to the consensus estimate of $1.08 billion. During the same quarter last year, the firm earned $0.46 earnings per share. The company's revenue was up 35.6% on a year-over-year basis. Datadog has set its Q3 2026 guidance at 0.630-0.650 EPS and its FY 2026 guidance at 2.500-2.540 EPS. On average, equities analysts forecast that Datadog, Inc. will post 0.7 EPS for the current year.

About Datadog

Datadog, Inc is a software company that provides a cloud-based monitoring, observability and security platform. Its services help organizations collect, analyze and visualize data from applications, infrastructure, networks, databases and other technology environments, enabling them to identify performance issues, manage incidents and improve digital services.

The company's product offerings include infrastructure monitoring, application performance monitoring, log management, database and network monitoring, real user and synthetic experience monitoring, cloud security, software supply chain security, incident management and workflow automation.

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