Knollwood Investment Advisory LLC Raises Stake in Datadog, Inc. $DDOG

Key Points

• Knollwood Investment Advisory increased its Datadog stake by 54.1% in the second quarter, reaching 38,461 shares valued at approximately $10 million. Institutional investors collectively own 78.29% of Datadog.
• Datadog’s latest quarterly results exceeded expectations, with adjusted EPS of $0.65 versus a $0.58 consensus and revenue of $1.12 billion, up 35.6% year over year.
• Despite a “Moderate Buy” analyst consensus and a $276.32 target price, the stock carries a premium valuation and faces volatility risks; company insiders have also sold more than $295 million of shares over the past 90 days under pre-arranged trading plans.

Knollwood Investment Advisory LLC increased its holdings in shares of Datadog, Inc. (NASDAQ:DDOG - Free Report) by 54.1% in the second quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 38,461 shares of the company's stock after purchasing an additional 13,500 shares during the quarter. Datadog accounts for about 0.9% of Knollwood Investment Advisory LLC's investment portfolio, making the stock its 28th largest holding. Knollwood Investment Advisory LLC's holdings in Datadog were worth $10,014,000 at the end of the most recent quarter.

Several other hedge funds have also recently bought and sold shares of DDOG. State Street Corp lifted its position in Datadog by 106.8% during the third quarter. State Street Corp now owns 13,732,777 shares of the company's stock valued at $1,955,547,000 after buying an additional 7,091,075 shares in the last quarter. Norges Bank purchased a new position in shares of Datadog in the 4th quarter valued at $469,461,000. Invesco Ltd. raised its stake in shares of Datadog by 119.2% in the 3rd quarter. Invesco Ltd. now owns 4,075,721 shares of the company's stock valued at $580,383,000 after acquiring an additional 2,216,402 shares during the period. Employees Provident Fund Board acquired a new position in shares of Datadog during the 4th quarter valued at $251,582,000. Finally, First Trust Advisors LP lifted its holdings in shares of Datadog by 81.5% during the 1st quarter. First Trust Advisors LP now owns 3,685,562 shares of the company's stock valued at $435,081,000 after acquiring an additional 1,654,429 shares in the last quarter. Hedge funds and other institutional investors own 78.29% of the company's stock.

Datadog Price Performance

DDOG opened at $214.76 on Friday. Datadog, Inc. has a twelve month low of $98.01 and a twelve month high of $292.72. The firm has a market cap of $77.12 billion, a price-to-earnings ratio of 438.29, a PEG ratio of 20.49 and a beta of 1.49. The company has a current ratio of 3.20, a quick ratio of 3.20 and a debt-to-equity ratio of 0.23. The company has a fifty day simple moving average of $250.18 and a 200 day simple moving average of $193.14.

Datadog (NASDAQ:DDOG - Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The company reported $0.65 EPS for the quarter, topping analysts' consensus estimates of $0.58 by $0.07. The firm had revenue of $1.12 billion for the quarter, compared to analyst estimates of $1.08 billion. Datadog had a net margin of 4.48% and a return on equity of 5.67%. The firm's revenue was up 35.6% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.46 EPS. Datadog has set its Q3 2026 guidance at 0.630-0.650 EPS and its FY 2026 guidance at 2.500-2.540 EPS. Equities research analysts expect that Datadog, Inc. will post 0.7 EPS for the current fiscal year.

Datadog News Roundup

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Snowflake earnings lifted cloud-software sentiment. Snowflake’s better-than-expected results and outlook encouraged investors to expect continued spending on data infrastructure, observability and AI tools—areas that could benefit Datadog. Datadog Stock Climbs Following Snowflake Earnings
• Positive Sentiment: Growth-stock characteristics remain supportive. Zacks highlighted Datadog’s AI momentum, customer expansion and raised guidance as reasons to maintain a constructive view. The company’s latest quarter showed revenue growth of 35.6% year over year, with earnings and revenue exceeding consensus estimates. Reasons to Hold Datadog Stock
• Neutral Sentiment: Analyst-style growth commentary is supportive but not a new company catalyst. A separate Zacks article rated Datadog favorably as a growth stock, though investors must weigh that view against the shares’ elevated valuation, including a very high price-to-earnings ratio. Why Datadog Is a Strong Growth Stock
• Negative Sentiment: CTO insider selling creates a modest overhang. Chief Technology Officer Alexis Le-Quoc sold 53,912 shares for approximately $12.2 million, reducing his direct ownership by 9.56%. Because the transaction was conducted under a pre-arranged Rule 10b5-1 plan, it is less clearly a discretionary signal about Datadog’s outlook. SEC Insider Trading Filing
• Negative Sentiment: Valuation and recent volatility remain risks. Datadog had fallen substantially over the prior month amid a software-sector selloff, and its premium valuation makes the stock sensitive to changes in growth expectations and interest rates. Datadog Recent Selloff Analysis

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on DDOG. Zacks Research downgraded Datadog from a "strong-buy" rating to a "hold" rating in a report on Monday, August 17th. Evercore boosted their price objective on Datadog from $225.00 to $265.00 and gave the stock an "outperform" rating in a research note on Wednesday, June 10th. UBS Group decreased their target price on Datadog from $315.00 to $280.00 and set a "buy" rating for the company in a research report on Friday, August 7th. Piper Sandler reiterated an "overweight" rating and issued a $275.00 target price (up from $230.00) on shares of Datadog in a research note on Wednesday, June 10th. Finally, Benchmark reiterated a "buy" rating on shares of Datadog in a report on Tuesday, July 28th. One research analyst has rated the stock with a Strong Buy rating, thirty-eight have assigned a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $276.32.

Insider Buying and Selling at Datadog

In related news, CTO Alexis Le-Quoc sold 53,912 shares of the business's stock in a transaction dated Tuesday, September 1st. The stock was sold at an average price of $227.02, for a total value of $12,239,102.24. Following the transaction, the chief technology officer owned 509,805 shares in the company, valued at approximately $115,735,931.10. The trade was a 9.56% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Olivier Pomel sold 47,054 shares of the stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $235.49, for a total value of $11,080,746.46. Following the completion of the transaction, the chief executive officer directly owned 612,747 shares of the company's stock, valued at $144,295,791.03. This represents a 7.13% 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. In the last 90 days, insiders sold 1,206,167 shares of company stock valued at $295,252,217. Company insiders own 6.48% of the company's stock.

About Datadog

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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