Zacks Research Downgrades Datadog (NASDAQ:DDOG) to Hold

Datadog (NASDAQ:DDOG - Get Free Report) was downgraded by equities researchers at Zacks Research from a "strong-buy" rating to a "hold" rating in a report released on Monday,Zacks.com reports.

Several other equities research analysts also recently issued reports on DDOG. Capital One Financial raised their target price on shares of Datadog from $217.00 to $268.00 and gave the company an "overweight" rating in a research note on Wednesday, June 17th. BTIG Research lifted their target price on Datadog from $255.00 to $289.00 and gave the stock a "buy" rating in a research note on Tuesday, July 28th. Stifel Nicolaus set a $305.00 target price on Datadog in a report on Thursday, May 7th. Rothschild & Co Redburn assumed coverage on Datadog in a report on Thursday, April 23rd. They set a "buy" rating and a $170.00 price target for the company. Finally, Wall Street Zen raised shares of Datadog from a "hold" rating to a "buy" rating in a research report on Saturday, May 16th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-eight have issued a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $276.32.

Datadog Stock Down 0.5%

Shares of NASDAQ DDOG opened at $246.00 on Monday. Datadog has a 52-week low of $98.01 and a 52-week high of $292.72. The company has a debt-to-equity ratio of 0.23, a quick ratio of 3.20 and a current ratio of 3.20. The stock has a market cap of $88.33 billion, a P/E ratio of 502.05, a P/E/G ratio of 26.87 and a beta of 1.54. The firm has a 50 day moving average price of $249.61 and a 200 day moving average price of $184.12.

Datadog (NASDAQ:DDOG - Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The company reported $0.65 EPS for the quarter, topping 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 company had revenue of $1.12 billion for the quarter, compared to analyst estimates of $1.08 billion. During the same quarter last year, the firm posted $0.46 earnings per share. Datadog's revenue 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. Analysts expect that Datadog will post 0.7 EPS for the current year.

Insider Transactions at Datadog

In other news, Director Dev Ittycheria sold 120,000 shares of the company's stock in a transaction on Wednesday, June 3rd. The stock was sold at an average price of $248.78, for a total transaction of $29,853,600.00. Following the completion of the sale, the director directly owned 39,235 shares in the company, valued at approximately $9,760,883.30. This represents a 75.36% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Michael James Callahan sold 112,500 shares of the stock in a transaction on Friday, June 12th. The stock was sold at an average price of $231.60, for a total value of $26,055,000.00. Following the sale, the director directly owned 14,996 shares in the company, valued at approximately $3,473,073.60. This trade represents a 88.24% decrease in their ownership of the stock. 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 three months, insiders sold 1,465,134 shares of company stock worth $363,421,509. Corporate insiders own 6.48% of the company's stock.

Institutional Investors Weigh In On Datadog

Large investors have recently bought and sold shares of the company. Price T Rowe Associates Inc. MD lifted its holdings in shares of 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 acquiring an additional 956,993 shares during the period. State Street Corp lifted its stake in Datadog by 106.8% during the third 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 last quarter. Geode Capital Management LLC boosted its holdings 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 in the last quarter. Janus Henderson Group PLC increased its stake in shares of Datadog by 22.8% in the 1st quarter. Janus Henderson Group PLC now owns 7,749,569 shares of the company's stock valued at $905,570,000 after purchasing an additional 1,439,082 shares during the last quarter. Finally, Jennison Associates LLC increased 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. 78.29% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting Datadog

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Analysts maintain a favorable view of Datadog, with an average rating of “Moderate Buy” and an average price target of $276.32, implying potential upside from recent trading levels. Needham raised its target to $300, DA Davidson maintained a $315 target, and Scotiabank increased its target to $285. Datadog Receives Moderate Buy Rating
• Positive Sentiment: Datadog’s latest quarterly results exceeded expectations: adjusted EPS was $0.65 versus a $0.58 consensus estimate, while revenue reached $1.12 billion, up 35.6% year over year and above the $1.08 billion forecast. The company also issued quarterly and full-year 2026 EPS guidance. Its observability and security products continue to provide exposure to artificial intelligence and cloud-security spending. AI Security Stocks Stand Out
• Neutral Sentiment: Institutional ownership remains substantial at 78.29%, and several funds increased their Datadog positions or initiated new stakes. However, Goldman Sachs retained a “sell” rating with a $158 target, highlighting significant disagreement over the stock’s valuation.
• Negative Sentiment: Director Matthew Jacobson sold a combined 59,424 shares for approximately $15 million across August 13 and 14, reducing his holdings by roughly 10% while retaining 524,708 shares. Director Amit Agarwal separately sold 20,000 shares for about $5 million, leaving him with only 1,640 shares. Agarwal’s transaction was conducted under a pre-arranged Rule 10b5-1 plan, which may lessen its informational significance, but the repeated sales can still weigh on sentiment. Datadog Director Stock Sale Datadog Insider Selling Alert
• Negative Sentiment: Datadog trades at an exceptionally high valuation, with a price-to-earnings ratio above 500 and a PEG ratio near 27. That leaves the stock vulnerable to profit-taking or disappointment if its rapid growth and guidance fail to accelerate enough to justify investor expectations.

About Datadog

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.

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.

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