Sean Michael Walters Sells 1,914 Shares of Datadog (NASDAQ:DDOG) Stock

Key Points

• Datadog CRO Sean Michael Walters sold 1,914 shares on May 5 at an average price of $150 under a pre‑arranged Rule 10b5‑1 plan, trimming his stake by 0.65% while still holding 291,267 shares (~$43.69M).
• Q1 beat and upgraded guidance: Datadog reported revenue of ~$1.01B (+32% YoY) and EPS $0.60, topped estimates and raised Q2 (EPS $0.57–$0.59) and FY‑2026 (EPS $2.36–$2.44) guidance, sparking a roughly 31% intraday rally.
• Despite the strong print, the shares trade at a stretched valuation (P/E ~608–609) and have seen unusually heavy options/trading flow plus recent insider sales, raising the risk of short‑term volatility or profit taking.

Datadog, Inc. (NASDAQ:DDOG - Get Free Report) CRO Sean Michael Walters sold 1,914 shares of the firm's stock in a transaction that occurred on Tuesday, May 5th. The shares were sold at an average price of $150.00, for a total transaction of $287,100.00. Following the completion of the sale, the executive owned 291,267 shares in the company, valued at approximately $43,690,050. The trade was a 0.65% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Sean Michael Walters also recently made the following trade(s):

• On Wednesday, March 11th, Sean Michael Walters sold 22,330 shares of Datadog stock. The stock was sold at an average price of $125.68, for a total transaction of $2,806,434.40.

Datadog Trading Up 31.3%

NASDAQ:DDOG traded up $45.02 during mid-day trading on Thursday, hitting $188.73. 25,943,463 shares of the company's stock were exchanged, compared to its average volume of 5,857,098. The company has a 50 day simple moving average of $122.72 and a 200-day simple moving average of $136.73. The company has a current ratio of 3.38, a quick ratio of 3.38 and a debt-to-equity ratio of 0.26. Datadog, Inc. has a fifty-two week low of $98.01 and a fifty-two week high of $201.69. The firm has a market capitalization of $66.54 billion, a P/E ratio of 608.81, a PEG ratio of 52.75 and a beta of 1.30.

Datadog (NASDAQ:DDOG - Get Free Report) last posted its earnings results on Thursday, May 7th. The company reported $0.60 EPS for the quarter, topping the consensus estimate of $0.50 by $0.10. Datadog had a net margin of 3.14% and a return on equity of 4.14%. The business had revenue of $1.01 billion for the quarter, compared to the consensus estimate of $960.12 million. During the same period last year, the company earned $0.46 EPS. The firm's revenue was up 32.1% compared to the same quarter last year. 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, research analysts expect that Datadog, Inc. will post 0.32 earnings per share for the current year.

Analyst Ratings Changes

A number of brokerages have recently issued reports on DDOG. Citigroup upgraded shares of Datadog from a "buy" rating to an "outperform" rating in a research report on Thursday. Truist Financial dropped their price target on shares of Datadog from $195.00 to $140.00 and set a "hold" rating on the stock in a research report on Wednesday, January 7th. Guggenheim restated a "buy" rating and issued a $225.00 price target on shares of Datadog in a research report on Thursday. KeyCorp dropped their price target on shares of Datadog from $170.00 to $155.00 and set an "overweight" rating on the stock in a research report on Wednesday, February 4th. Finally, UBS Group set a $195.00 price target on shares of Datadog in a research report on Monday, February 9th. One investment analyst has rated the stock with a Strong Buy rating, thirty-eight have assigned a Buy rating, two have issued a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $186.41.

Datadog News Roundup

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Management raised Q2 and FY‑2026 guidance materially (Q2 EPS $0.57–$0.59 vs. consensus ~ $0.41; FY EPS $2.36–$2.44 vs. ~ $1.80), the principal bullish catalyst behind today’s rally. Read More.
• Positive Sentiment: Q1 beat: revenue ~$1.01B (+32% YoY) and EPS $0.60 topped estimates; strong operating and free cash flow and expansion in $100k+ ARR customers support the upgraded guide. Read More.
• Positive Sentiment: Sell‑side momentum: multiple firms boosted ratings/targets after the print (Wedbush, BTIG, others), adding follow‑through buying. Read More. Read More.
• Positive Sentiment: Product & market wins: new AI/security product launches and FedRAMP High certification expand addressable market (especially federal deals). Read More.
• Neutral Sentiment: Options and trading flow have been unusually heavy around the earnings event, amplifying intraday moves and volatility; some of the move may be traders’ positioning rather than long‑term buyers. Read More.
• Neutral Sentiment: Analyst coverage & headlines are driving outsized attention—expect day‑to‑day sensitivity to commentary on AI adoption, bookings and large‑customer trends. Read More.
• Negative Sentiment: Insider selling: the CTO disclosed a Rule 10b5‑1 sale of ~43k shares, which some investors interpret negatively despite being pre‑arranged. Read More.
• Negative Sentiment: Valuation is stretched (very high P/E and premium multiples); after a strong one‑day rise investors may lock in gains, making the stock vulnerable to pullbacks even with good fundamentals.

Institutional Trading of Datadog

Several hedge funds have recently modified their holdings of DDOG. Brighton Jones LLC bought a new stake in Datadog during the 4th quarter valued at $209,000. Bison Wealth LLC bought a new stake in Datadog during the 4th quarter valued at $228,000. Empowered Funds LLC increased its stake in Datadog by 7.0% during the 1st quarter. Empowered Funds LLC now owns 10,313 shares of the company's stock valued at $1,023,000 after purchasing an additional 672 shares in the last quarter. Geneos Wealth Management Inc. increased its stake in Datadog by 17.6% during the 1st quarter. Geneos Wealth Management Inc. now owns 769 shares of the company's stock valued at $76,000 after purchasing an additional 115 shares in the last quarter. Finally, Sivia Capital Partners LLC bought a new stake in Datadog during the 2nd quarter valued at $509,000. Institutional investors own 78.29% of the company's stock.

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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