Rakuten Investment Management Inc. Increases Stock Holdings in Datadog, Inc. $DDOG

Key Points

• Rakuten Investment Management significantly boosted its Datadog position, increasing holdings by 266.5% in the fourth quarter to 59,602 shares valued at about $8.2 million.
• Several analysts turned more bullish on Datadog, with Truist upgrading the stock to Buy and raising its price target to $300; the broader consensus remains Moderate Buy with an average target of $234.14.
• Datadog continues to show strong operating momentum, reporting 32.1% year-over-year revenue growth and beating earnings estimates in its latest quarter, while also highlighting expansion in AI observability, cloud monitoring, and security products.

Rakuten Investment Management Inc. lifted its stake in Datadog, Inc. (NASDAQ:DDOG - Free Report) by 266.5% in the fourth quarter, according to the company in its most recent 13F filing with the SEC. The firm owned 59,602 shares of the company's stock after purchasing an additional 43,340 shares during the quarter. Rakuten Investment Management Inc.'s holdings in Datadog were worth $8,221,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also recently modified their holdings of the stock. L2 Asset Management LLC raised its stake in shares of Datadog by 9.0% in the fourth quarter. L2 Asset Management LLC now owns 1,604 shares of the company's stock valued at $218,000 after acquiring an additional 133 shares during the period. 71 West Capital Partners purchased a new stake in Datadog in the 4th quarter worth about $10,698,000. Faithward Advisors LLC purchased a new stake in Datadog in the 4th quarter worth about $1,815,000. Silvant Capital Management LLC raised its position in Datadog by 9.2% in the 4th quarter. Silvant Capital Management LLC now owns 48,218 shares of the company's stock worth $6,557,000 after purchasing an additional 4,082 shares during the period. Finally, Vanguard Personalized Indexing Management LLC raised its position in Datadog by 12.9% in the 4th quarter. Vanguard Personalized Indexing Management LLC now owns 33,404 shares of the company's stock worth $4,543,000 after purchasing an additional 3,824 shares during the period. Hedge funds and other institutional investors own 78.29% of the company's stock.

Datadog News Summary

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Truist upgraded Datadog to buy and lifted its price target to $300, signaling confidence in the company’s growth outlook and more upside ahead. Truist Just Upgraded Datadog Stock. Here's Why.
• Positive Sentiment: Recent coverage highlighted Datadog’s expanding AI observability, cloud monitoring, and security offerings, suggesting broadening customer demand is still supporting revenue growth and cash generation. Datadog (DDOG): AI Observability Push Shows Why Cloud Monitoring Demand Is Broadening
• Positive Sentiment: Datadog’s Dash conference news was viewed as constructive after it unveiled 100+ new AI and security features, reinforcing its platform strategy and supporting recent guidance optimism. How Datadog’s Dash AI and Security Expansion Will Impact Datadog (DDOG) Investors
• Neutral Sentiment: Datadog has also attracted attention from valuation-focused commentary saying the shares look somewhat rich after a strong run, which could limit near-term enthusiasm. Datadog (DDOG) Stock Valuation Looks Slightly Rich After Strong Momentum
• Negative Sentiment: Several Datadog insiders sold shares under pre-arranged Rule 10b5-1 plans, including Director Michael James Callahan and CRO Sean Michael Walters, which may be viewed as a mild caution signal by some investors. Insider trade details

Insider Activity at Datadog

In other news, CFO David M. Obstler sold 75,000 shares of the company's stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $231.69, for a total value of $17,376,750.00. Following the completion of the sale, the chief financial officer owned 434,591 shares of the company's stock, valued at approximately $100,690,388.79. This represents a 14.72% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Michael James Callahan sold 112,500 shares of the company's stock in a transaction that occurred on Friday, June 12th. The stock was sold at an average price of $231.60, for a total transaction of $26,055,000.00. Following the completion of the sale, the director directly owned 14,996 shares of the company's stock, valued at $3,473,073.60. The trade was a 88.24% 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 sold a total of 1,354,489 shares of company stock worth $278,129,246 over the last three months. Corporate insiders own 6.48% of the company's stock.

Analyst Ratings Changes

A number of analysts recently weighed in on the stock. Wall Street Zen raised shares of Datadog from a "hold" rating to a "buy" rating in a research report on Saturday, May 16th. Cantor Fitzgerald reissued an "overweight" rating and issued a $226.00 price objective on shares of Datadog in a research report on Thursday, June 11th. Truist Financial raised shares of Datadog from a "hold" rating to a "buy" rating and increased their price objective for the stock from $190.00 to $300.00 in a research report on Monday. DA Davidson set a $250.00 price objective on shares of Datadog in a research report on Friday, May 22nd. Finally, The Goldman Sachs Group boosted their target price on shares of Datadog from $121.00 to $139.00 and gave the company a "sell" rating in a research note on Tuesday, May 12th. One analyst has rated the stock with a Strong Buy rating, forty have given a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $234.14.

Datadog Trading Down 0.8%

DDOG opened at $231.11 on Wednesday. The stock's fifty day moving average is $182.76 and its two-hundred day moving average is $148.33. The company has a market capitalization of $82.27 billion, a P/E ratio of 608.20, a PEG ratio of 24.96 and a beta of 1.56. Datadog, Inc. has a 52 week low of $98.01 and a 52 week high of $278.70. 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 (NASDAQ:DDOG - Get Free Report) last released its quarterly earnings data on Thursday, May 7th. The company reported $0.60 EPS for the quarter, topping the consensus estimate of $0.51 by $0.09. The company had revenue of $1.01 billion for the quarter, compared to the consensus estimate of $960.12 million. Datadog had a return on equity of 4.83% and a net margin of 3.69%.Datadog's quarterly revenue was up 32.1% on a year-over-year basis. During the same period last year, the business 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 forecast that Datadog, Inc. will post 0.61 earnings per share for the current 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.

Want to see what other hedge funds are holding DDOG? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Datadog, Inc. (NASDAQ:DDOG - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.