Readystate Asset Management LP Invests $1.63 Million in Datadog, Inc. $DDOG

Key Points

• Readystate Asset Management acquired 13,787 Datadog shares worth approximately $1.63 million in the first quarter. Institutional investors collectively own 78.29% of DDOG.
• Datadog reported quarterly revenue of $1.01 billion, up 32.1% year over year, and EPS of $0.60, exceeding analysts’ $0.51 estimate. Despite strong growth, the stock trades at an elevated valuation, with a P/E ratio above 660.
• Wall Street maintains a bullish view, with a consensus “Moderate Buy” rating and a $264.84 price target, although recent insider selling—including more than $342 million of stock over 90 days—could weigh on sentiment.

Readystate Asset Management LP acquired a new position in Datadog, Inc. (NASDAQ:DDOG - Free Report) during the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund acquired 13,787 shares of the company's stock, valued at approximately $1,628,000.

Several other institutional investors have also added to or reduced their stakes in the stock. Price T Rowe Associates Inc. MD raised its holdings in Datadog by 7.1% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 14,423,814 shares of the company's stock worth $1,961,496,000 after purchasing an additional 956,993 shares during the last quarter. State Street Corp lifted its position in shares of Datadog by 106.8% in the 3rd quarter. State Street Corp now owns 13,732,777 shares of the company's stock worth $1,955,547,000 after purchasing an additional 7,091,075 shares during the period. Geode Capital Management LLC boosted its stake in shares of Datadog by 2.2% in the 4th quarter. Geode Capital Management LLC now owns 9,056,086 shares of the company's stock valued at $1,227,184,000 after purchasing an additional 197,816 shares during the last quarter. Jennison Associates LLC boosted its stake in shares of Datadog by 43.7% in the 4th quarter. Jennison Associates LLC now owns 7,623,993 shares of the company's stock valued at $1,036,787,000 after purchasing an additional 2,316,994 shares during the last quarter. Finally, Invesco Ltd. increased its position in shares of Datadog by 119.2% during the third quarter. Invesco Ltd. now owns 4,075,721 shares of the company's stock worth $580,383,000 after buying an additional 2,216,402 shares during the period. 78.29% of the stock is currently owned by institutional investors.

Datadog Stock Down 0.4%

Datadog stock opened at $250.88 on Wednesday. The company has a market capitalization of $89.30 billion, a PE ratio of 660.23, a PEG ratio of 25.61 and a beta of 1.54. Datadog, Inc. has a 12-month low of $98.01 and a 12-month high of $278.70. The firm's fifty day moving average is $242.98 and its 200 day moving average is $170.38. 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 posted its quarterly earnings results on Thursday, May 7th. The company reported $0.60 EPS for the quarter, topping analysts' consensus estimates of $0.51 by $0.09. Datadog had a net margin of 3.69% and a return on equity of 4.83%. The business had revenue of $1.01 billion during the quarter, compared to analysts' expectations of $960.12 million. During the same period last year, the company posted $0.46 earnings per share. The business's quarterly revenue was up 32.1% on a year-over-year basis. Datadog has set its FY 2026 guidance at 2.360-2.440 EPS and its Q2 2026 guidance at 0.570-0.590 EPS. As a group, sell-side analysts predict that Datadog, Inc. will post 0.64 EPS for the current fiscal year.

Insider Activity at Datadog

In other news, CTO Alexis Le-Quoc sold 53,912 shares of the firm's stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $271.05, for a total value of $14,612,847.60. Following the completion of the sale, the chief technology officer directly owned 531,311 shares in the company, valued at $144,011,846.55. This trade represents a 9.21% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Michael James Callahan sold 112,500 shares of the business's stock in a transaction dated Friday, June 12th. The shares were sold at an average price of $231.60, for a total value 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 ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 1,486,587 shares of company stock worth $342,962,652. 6.48% of the stock is currently owned by insiders.

Key Stories Impacting Datadog

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: BTIG Research raised its Datadog price target to $289 from $255 and maintained a Buy rating, implying approximately 15% upside from the referenced price. The upgrade reinforces confidence in Datadog’s growth outlook. BTIG price target article
• Positive Sentiment: Datadog recently outperformed the broader market, with shares advancing 2.03% in the latest completed session. Investor interest has been supported by expectations for upcoming cloud-company earnings and generally bullish Wall Street recommendations. Why Datadog outpaced the stock market
• Neutral Sentiment: The average brokerage recommendation remains equivalent to a Buy, although the concentration of bullish ratings may reduce the signal’s usefulness and leave the stock vulnerable to disappointment. Wall Street recommendations on Datadog
• Negative Sentiment: CEO Olivier Pomel sold 47,054 shares worth about $11.5 million, CTO Alexis Le-Quoc sold 43,224 shares worth approximately $11.5 million, and Director Amit Agarwal sold 20,000 shares for roughly $4.9 million. All three transactions were made under pre-arranged Rule 10b5-1 plans, which reduces their significance as discretionary bearish signals, but the sales can still pressure sentiment—particularly after DDOG’s strong run and elevated valuation.

Wall Street Analysts Forecast Growth

A number of brokerages recently weighed in on DDOG. Craig Hallum initiated coverage on shares of Datadog in a research note on Monday, June 15th. They set a "buy" rating for the company. Raymond James Financial upped their price target on shares of Datadog from $170.00 to $220.00 in a research report on Thursday, May 7th. Piper Sandler reiterated an "overweight" rating and set a $275.00 price target (up from $230.00) on shares of Datadog in a report on Wednesday, June 10th. Wolfe Research reissued an "outperform" rating and issued a $295.00 price objective on shares of Datadog in a research report on Thursday, June 11th. Finally, Jefferies Financial Group downgraded Datadog from a "buy" rating to a "hold" rating and boosted their price objective for the company from $210.00 to $280.00 in a research note on Tuesday, July 21st. Two research analysts have rated the stock with a Strong Buy rating, thirty-nine have issued a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $264.84.

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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