Needham & Company LLC Reaffirms Buy Rating for Datadog (NASDAQ:DDOG)

Key Points

• Needham & Company LLC has reiterated a "buy" rating for Datadog (NASDAQ:DDOG) with a price target of $175.00, suggesting a potential upside of nearly 36% from the previous close.
• Datadog reported a quarterly earnings per share (EPS) of $0.46, exceeding expectations and showcasing a 28.1% revenue growth year-over-year.
• Insider trading activity saw significant sales with CEO Olivier Pomel and CTO Alexis Le-Quoc offloading substantial shares, which has raised questions regarding corporate confidence among investors.

Datadog (NASDAQ:DDOG - Get Free Report)'s stock had its "buy" rating reiterated by research analysts at Needham & Company LLC in a research note issued on Thursday,Benzinga reports. They currently have a $175.00 price objective on the stock. Needham & Company LLC's price target points to a potential upside of 35.96% from the company's previous close.

DDOG has been the subject of several other research reports. Cantor Fitzgerald upped their price target on Datadog from $171.00 to $179.00 and gave the stock an "overweight" rating in a research note on Thursday, August 7th. Barclays set a $170.00 price target on Datadog and gave the stock an "overweight" rating in a research note on Thursday, August 7th. BTIG Research set a $136.00 price target on Datadog and gave the stock a "buy" rating in a research note on Tuesday, May 6th. Canaccord Genuity Group set a $160.00 price target on Datadog and gave the stock a "buy" rating in a research note on Friday, August 8th. Finally, Rosenblatt Securities decreased their price target on Datadog from $160.00 to $150.00 and set a "buy" rating for the company in a research note on Monday, May 5th. One investment analyst has rated the stock with a sell rating, five have given a hold rating and twenty-four have issued a buy rating to the company. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $152.93.

Datadog Stock Performance

DDOG opened at $128.71 on Thursday. The company has a market cap of $44.45 billion, a PE ratio of 367.75, a price-to-earnings-growth ratio of 61.72 and a beta of 1.02. The stock has a 50-day moving average of $135.79 and a 200-day moving average of $120.65. Datadog has a 52-week low of $81.63 and a 52-week high of $170.08. The company has a debt-to-equity ratio of 0.31, a quick ratio of 2.74 and a current ratio of 3.43.

Datadog (NASDAQ:DDOG - Get Free Report) last released its quarterly earnings results on Thursday, August 7th. The company reported $0.46 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.41 by $0.05. The company had revenue of $826.76 million during the quarter, compared to the consensus estimate of $791.72 million. Datadog had a return on equity of 5.04% and a net margin of 4.13%. The firm's revenue was up 28.1% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.43 EPS. As a group, equities research analysts forecast that Datadog will post 0.34 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, CEO Olivier Pomel sold 107,365 shares of the stock in a transaction that occurred on Monday, June 9th. The stock was sold at an average price of $121.71, for a total value of $13,067,394.15. Following the completion of the transaction, the chief executive officer directly owned 548,715 shares of the company's stock, valued at approximately $66,784,102.65. This represents a 16.36% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CTO Alexis Le-Quoc sold 127,105 shares of the stock in a transaction that occurred on Wednesday, June 4th. The stock was sold at an average price of $119.96, for a total value of $15,247,515.80. Following the completion of the transaction, the chief technology officer directly owned 452,769 shares of the company's stock, valued at approximately $54,314,169.24. The trade was a 21.92% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 846,051 shares of company stock valued at $107,936,283. 8.70% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Datadog

A number of hedge funds have recently modified their holdings of DDOG. Gerber Kawasaki Wealth & Investment Management bought a new stake in Datadog during the 2nd quarter worth approximately $244,000. Temasek Holdings Private Ltd grew its position in Datadog by 163.1% during the 2nd quarter. Temasek Holdings Private Ltd now owns 286,300 shares of the company's stock worth $38,459,000 after acquiring an additional 177,473 shares during the last quarter. WINTON GROUP Ltd bought a new stake in Datadog during the 2nd quarter worth approximately $4,532,000. Ossiam grew its position in Datadog by 47.2% during the 2nd quarter. Ossiam now owns 168,952 shares of the company's stock worth $22,695,000 after acquiring an additional 54,154 shares during the last quarter. Finally, California Public Employees Retirement System grew its position in Datadog by 40.3% during the 2nd quarter. California Public Employees Retirement System now owns 505,189 shares of the company's stock worth $67,862,000 after acquiring an additional 145,044 shares during the last quarter. 78.29% of the stock is owned by institutional investors and hedge funds.

About Datadog

Datadog, Inc operates an observability and security platform for cloud applications in North America and internationally. The company's products comprise infrastructure and application performance monitoring, log management, digital experience monitoring, continuous profiler, database monitoring, data streams and universal service monitoring, network monitoring, incident management, workflow automation, observability pipelines, cloud cost and cloud security management, application security management, cloud SIEM, sensitive data scanner, and CI visibility.

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