Datadog (NASDAQ:DDOG) Rating Increased to Strong-Buy at Zacks Research

Datadog (NASDAQ:DDOG) was upgraded by equities research analysts at Zacks Research from a “hold” rating to a “strong-buy” rating in a research note issued to investors on Tuesday,Zacks.com reports.

A number of other equities analysts have also recently weighed in on DDOG. Rothschild & Co Redburn began coverage on Datadog in a research note on Thursday, April 23rd. They issued a “buy” rating and a $170.00 price target on the stock. Scotiabank boosted their price target on shares of Datadog from $225.00 to $275.00 and gave the company an “outperform” rating in a report on Thursday, June 18th. Wall Street Zen raised shares of Datadog from a “hold” rating to a “buy” rating in a research note on Saturday, May 16th. Canadian Imperial Bank of Commerce lifted their price objective on shares of Datadog from $250.00 to $280.00 and gave the stock an “outperform” rating in a research report on Wednesday, June 10th. Finally, UBS Group increased their target price on Datadog from $195.00 to $220.00 and gave the company a “buy” rating in a report on Friday, May 8th. Two equities research analysts have rated the stock with a Strong Buy rating, forty have assigned a Buy rating, two have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $244.73.

Datadog Stock Up 1.7%

DDOG opened at $261.09 on Tuesday. Datadog has a 12 month low of $98.01 and a 12 month high of $278.70. The company has a debt-to-equity ratio of 0.25, a current ratio of 3.40 and a quick ratio of 3.40. The stock has a market cap of $92.94 billion, a P/E ratio of 687.10, a P/E/G ratio of 26.11 and a beta of 1.54. The stock’s 50 day moving average price is $221.33 and its 200 day moving average price is $158.62.

Datadog (NASDAQ:DDOG) last posted its quarterly earnings data on Thursday, May 7th. The company reported $0.60 earnings per share (EPS) for the quarter, beating the consensus estimate 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 firm posted $0.46 earnings per share. The business’s 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, research analysts predict that Datadog will post 0.64 earnings per share for the current year.

Insider Transactions at Datadog

In other news, Director Michael James Callahan sold 112,500 shares of Datadog stock in a transaction that occurred on 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 transaction, the director owned 14,996 shares of the company’s stock, valued at $3,473,073.60. This trade represents a 88.24% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Alexis Le-Quoc sold 53,912 shares of the business’s stock in a transaction on Monday, June 1st. The stock was sold at an average price of $271.05, for a total transaction of $14,612,847.60. Following the transaction, the chief technology officer directly owned 531,311 shares of the company’s stock, valued at approximately $144,011,846.55. This represents a 9.21% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 1,405,621 shares of company stock valued at $309,070,507 in the last ninety days. 6.48% of the stock is currently owned by insiders.

Institutional Trading of Datadog

Hedge funds have recently modified their holdings of the company. Valeo Financial Advisors LLC raised its holdings in shares of Datadog by 14.8% in the second quarter. Valeo Financial Advisors LLC now owns 5,785 shares of the company’s stock valued at $1,506,000 after buying an additional 744 shares during the last quarter. Trust Point Inc. bought a new stake in Datadog in the second quarter valued at approximately $249,000. FNY Investment Advisers LLC acquired a new stake in Datadog in the second quarter worth $910,000. Cooper Financial Group boosted its position in shares of Datadog by 16.6% during the second quarter. Cooper Financial Group now owns 7,265 shares of the company’s stock worth $1,892,000 after purchasing an additional 1,036 shares in the last quarter. Finally, Elevation Wealth Partners LLC increased its holdings in shares of Datadog by 2,700.0% in the second quarter. Elevation Wealth Partners LLC now owns 168 shares of the company’s stock worth $44,000 after acquiring an additional 162 shares in the last quarter. Institutional investors own 78.29% of the company’s stock.

Datadog News Summary

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Benchmark raised its price target on Datadog to a Street-high $330 from $260 and kept a Buy rating, citing strong execution and customer momentum in its product-led growth business. Benchmark lifts price target on Datadog
• Positive Sentiment: Datadog’s acquisition of Adaptive ML and its push into AI-focused observability continue to support the bull case, reinforcing expectations for longer-term growth. Datadog AI growth and Adaptive ML acquisition
• Positive Sentiment: Several articles still describe DDOG as a strong momentum stock, which can attract traders and support near-term demand. Datadog momentum stock article
• Neutral Sentiment: Director Michael James Callahan sold 12,500 shares in a pre-arranged Rule 10b5-1 transaction. The sale may add to insider-selling chatter, but it does not necessarily signal a fundamental problem. SEC filing on insider sale
• Neutral Sentiment: Another director sale by Amit Agarwal was disclosed, also under a 10b5-1 plan, keeping insider activity in focus but not necessarily changing the outlook. SEC filing on insider sale
• Negative Sentiment: Bernstein downgraded Datadog to Market Perform, arguing that growth may slow and that fourth-quarter revenue growth could miss elevated expectations. Bernstein downgrade on Datadog
• Negative Sentiment: That downgrade also raised concerns that Datadog’s AI growth story may already be priced in, limiting upside if near-term fundamentals do not accelerate. Bernstein caution on Datadog AI growth

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.