Datadog (NASDAQ:DDOG) Reaches New 12-Month High - Here's What Happened

Key Points

• Datadog shares reached a new 52-week high, trading as high as $292.81 and gaining 7.1% from the prior close. The company now has a market capitalization of approximately $105.3 billion.
• Analysts remain broadly bullish, with an average “Moderate Buy” rating and a consensus price target of $278.51; recent targets range from $268 to $300.
• Datadog’s latest quarterly results exceeded expectations, with EPS of $0.65 versus $0.58 expected and revenue of $1.12 billion, up 35.6% year over year. However, insiders sold approximately $226.7 million of shares over the past 90 days under pre-arranged trading plans.

Datadog, Inc. (NASDAQ:DDOG - Get Free Report)'s stock price hit a new 52-week high during trading on Friday. The stock traded as high as $292.81 and last traded at $293.2380, with a volume of 2470378 shares traded. The stock had previously closed at $273.80.

Analysts Set New Price Targets

Several equities analysts recently issued reports on the company. Capital One Financial lifted their price objective on Datadog from $217.00 to $268.00 and gave the stock an "overweight" rating in a report on Wednesday, June 17th. Barclays upped their target price on Datadog from $260.00 to $290.00 and gave the company an "overweight" rating in a report on Tuesday, July 21st. Benchmark reaffirmed a "buy" rating on shares of Datadog in a research note on Tuesday, July 28th. UBS Group decreased their price objective on shares of Datadog from $315.00 to $280.00 and set a "buy" rating on the stock in a research report on Friday, August 7th. Finally, Morgan Stanley increased their price objective on shares of Datadog from $225.00 to $300.00 and gave the company an "overweight" rating in a research note on Tuesday, July 28th. Three investment analysts have rated the stock with a Strong Buy rating, thirty-eight have given a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $278.51.

Datadog Stock Up 7.1%

The company has a market cap of $105.30 billion, a PE ratio of 598.50, a P/E/G ratio of 26.48 and a beta of 1.51. The firm has a 50-day simple moving average of $245.27 and a two-hundred day simple moving average of $215.54. The company has a debt-to-equity ratio of 0.23, a current ratio of 3.20 and a quick ratio of 3.20.

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

Insider Activity at Datadog

In other Datadog news, CFO David Obstler sold 40,000 shares of the stock in a transaction on Monday, September 14th. The stock was sold at an average price of $227.47, for a total transaction of $9,098,800.00. Following the transaction, the chief financial officer owned 378,067 shares of the company's stock, valued at $85,998,900.49. This represents a 9.57% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Alexis Le-Quoc sold 53,912 shares of the firm's stock in a transaction on Monday, August 10th. The stock was sold at an average price of $253.36, for a total value of $13,659,144.32. Following the sale, the chief technology officer owned 509,805 shares in the company, valued at $129,164,194.80. This trade represents a 9.56% 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. Over the last 90 days, insiders have sold 938,076 shares of company stock valued at $226,690,473. Company insiders own 6.48% of the company's stock.

Institutional Trading of Datadog

A number of hedge funds have recently added to or reduced their stakes in DDOG. Janus Henderson Group PLC lifted its holdings in shares of Datadog by 22.8% during the 1st quarter. Janus Henderson Group PLC now owns 7,749,569 shares of the company's stock worth $905,570,000 after acquiring an additional 1,439,082 shares during the period. First Trust Advisors LP grew its holdings in Datadog by 81.5% in the first quarter. First Trust Advisors LP now owns 3,685,562 shares of the company's stock valued at $435,081,000 after purchasing an additional 1,654,429 shares during the period. Bank of New York Mellon Corp increased its position in Datadog by 30.3% during the first quarter. Bank of New York Mellon Corp now owns 2,645,827 shares of the company's stock worth $312,340,000 after purchasing an additional 615,090 shares during the last quarter. Employees Provident Fund Board purchased a new position in Datadog during the fourth quarter worth approximately $251,582,000. Finally, Arrowstreet Capital Limited Partnership boosted its holdings in shares of Datadog by 162.2% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 1,571,018 shares of the company's stock valued at $185,459,000 after purchasing an additional 971,910 shares during the last quarter. 78.29% of the stock is owned by institutional investors and hedge funds.

Datadog Company Profile

Datadog, Inc is a software company that provides a cloud-based monitoring, observability and security platform. Its services help organizations collect, analyze and visualize data from applications, infrastructure, networks, databases and other technology environments, enabling them to identify performance issues, manage incidents and improve digital services.

The company's product offerings include infrastructure monitoring, application performance monitoring, log management, database and network monitoring, real user and synthetic experience monitoring, cloud security, software supply chain security, incident management and workflow automation.

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