Legato Capital Management LLC Sells 6,100 Shares of Datadog, Inc. $DDOG

Key Points

• Legato Capital Management cut its Datadog stake by 21.8% in the fourth quarter, selling 6,100 shares and leaving it with 21,900 shares valued at about $2.98 million.
• Analysts turned more bullish on DDOG, with multiple firms upgrading ratings and raising price targets; the stock now carries a consensus rating of “Moderate Buy” and an average target price of $213.98.
• Datadog’s recent fundamentals were strong, as the company beat earnings and revenue estimates, reported 32.1% year-over-year revenue growth, and issued guidance pointing to continued growth.

Legato Capital Management LLC lowered its stake in Datadog, Inc. (NASDAQ:DDOG - Free Report) by 21.8% during the 4th quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 21,900 shares of the company's stock after selling 6,100 shares during the quarter. Legato Capital Management LLC's holdings in Datadog were worth $2,978,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors have also recently made changes to their positions in DDOG. Brighton Jones LLC bought a new position in shares of Datadog in the fourth quarter worth about $209,000. Bison Wealth LLC bought a new position in shares of Datadog in the fourth quarter worth about $228,000. Empowered Funds LLC raised its stake in shares of Datadog by 7.0% in the first quarter. Empowered Funds LLC now owns 10,313 shares of the company's stock worth $1,023,000 after buying an additional 672 shares during the period. Geneos Wealth Management Inc. raised its stake in shares of Datadog by 17.6% in the first quarter. Geneos Wealth Management Inc. now owns 769 shares of the company's stock worth $76,000 after buying an additional 115 shares during the period. Finally, Sivia Capital Partners LLC bought a new position in shares of Datadog in the second quarter worth about $509,000. Institutional investors own 78.29% of the company's stock.

Analyst Ratings Changes

Several analysts recently issued reports on DDOG shares. Citizens Jmp upgraded Datadog from a "market perform" rating to an "outperform" rating and set a $225.00 target price for the company in a research report on Thursday, May 7th. Royal Bank Of Canada raised their price target on Datadog from $161.00 to $219.00 and gave the company an "outperform" rating in a report on Friday, May 8th. Wall Street Zen upgraded Datadog from a "hold" rating to a "buy" rating in a report on Saturday, May 16th. Evercore restated an "outperform" rating and set a $225.00 price target on shares of Datadog in a report on Thursday, May 7th. Finally, Cantor Fitzgerald cut their price target on Datadog from $220.00 to $150.00 and set an "overweight" rating for the company in a report on Friday, February 6th. One equities research analyst has rated the stock with a Strong Buy rating, forty have issued a Buy rating, one has assigned a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $213.98.

More Datadog News

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Wedbush added Datadog to its AI 30 list, saying the stock is benefiting from the ongoing AI buildout and highlighting Datadog’s role in AI observability as a compelling theme. Datadog, SK Hynix added to AI 30 List as Wedbush sees ‘third inning” of AI revolution
• Positive Sentiment: Several reports pointed to a bullish technical setup, including a “golden cross” where the 50-day moving average moved above the 200-day moving average, which traders often view as a momentum signal. Datadog (DDOG) Just Flashed Golden Cross Signal: Do You Buy?
• Positive Sentiment: Recent earnings also supported sentiment: Datadog beat estimates on both profit and revenue, with revenue up 32.1% year over year, and management issued guidance that suggests continued growth. 2 Software Stocks Turning AI Fears Into Fundamental Gains (DDOG)
• Neutral Sentiment: Datadog has also been a trending stock on investor websites, reflecting elevated attention rather than a clear new catalyst. Here is What to Know Beyond Why Datadog, Inc. (DDOG) is a Trending Stock
• Negative Sentiment: One potential overhang is continued insider selling: Datadog CTO Alexis Le-Quoc sold shares under a pre-arranged trading plan, which can sometimes weigh on sentiment even when the sale is routine. Insider Selling: Datadog NASDAQ: DDOG CTO Sells 43,224 Shares of Stock

Datadog Trading Up 2.0%

Shares of NASDAQ DDOG opened at $222.32 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. The business has a fifty day simple moving average of $144.17 and a two-hundred day simple moving average of $141.09. The firm has a market cap of $79.14 billion, a PE ratio of 585.07, a price-to-earnings-growth ratio of 40.86 and a beta of 1.30. Datadog, Inc. has a twelve month low of $98.01 and a twelve month high of $224.77.

Datadog (NASDAQ:DDOG - Get Free Report) last released 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. The firm had revenue of $1.01 billion during the quarter, compared to analyst estimates of $960.12 million. Datadog had a return on equity of 4.83% and a net margin of 3.69%.The business's revenue for the quarter was up 32.1% compared to the same quarter last year. During the same period in the previous year, the company posted $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. Analysts expect that Datadog, Inc. will post 0.61 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CEO Olivier Pomel sold 127,141 shares of the business's stock in a transaction on Monday, May 11th. The stock was sold at an average price of $199.84, for a total transaction of $25,407,857.44. Following the transaction, the chief executive officer directly owned 835,679 shares in the company, valued at $167,002,091.36. The trade was a 13.21% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Matthew Jacobson sold 52,832 shares of the business's stock in a transaction on Friday, May 8th. The stock was sold at an average price of $189.28, for a total value of $10,000,040.96. Following the transaction, the director owned 622,726 shares in the company, valued at approximately $117,869,577.28. This trade represents a 7.82% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 885,963 shares of company stock worth $130,015,444 in the last ninety days. 6.48% of the stock is owned by insiders.

Datadog Company 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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