Datadog (NASDAQ:DDOG) Trading 6.3% Higher – What’s Next?

Shares of Datadog, Inc. (NASDAQ:DDOG) rose 6.3% during trading on Wednesday . The company traded as high as $222.00 and last traded at $223.3710. 1,288,936 shares were traded during mid-day trading, a decline of 76% from the average session volume of 5,471,710 shares. The stock had previously closed at $210.23.

Analyst Upgrades and Downgrades

DDOG has been the subject of several recent analyst reports. UBS Group lowered their target price on Datadog from $315.00 to $280.00 and set a “buy” rating for the company in a research note on Friday, August 7th. Wells Fargo & Company boosted their price target on Datadog from $230.00 to $295.00 and gave the stock an “overweight” rating in a research note on Monday, July 20th. BMO Capital Markets set a $300.00 price target on Datadog in a report on Friday, August 7th. Benchmark restated a “buy” rating on shares of Datadog in a research note on Tuesday, July 28th. Finally, Truist Financial upgraded Datadog from a “hold” rating to a “buy” rating and lifted their price objective for the stock from $190.00 to $300.00 in a report on Monday, June 15th. One investment analyst has rated the stock with a Strong Buy rating, thirty-eight have given a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $276.32.

Datadog Stock Down 1.6%

The firm has a market capitalization of $79.62 billion, a price-to-earnings ratio of 452.50, a P/E/G ratio of 22.06 and a beta of 1.49. The stock has a 50 day moving average of $246.37 and a 200 day moving average of $196.50. The company has a quick ratio of 3.20, a current ratio of 3.20 and a debt-to-equity ratio of 0.23.

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

Insiders Place Their Bets

In other Datadog news, CTO Alexis Le-Quoc sold 53,912 shares of the business’s stock in a transaction on Wednesday, July 8th. The shares were sold at an average price of $257.24, for a total transaction of $13,868,322.88. Following the completion of the sale, the chief technology officer owned 509,805 shares in the company, valued at $131,142,238.20. The trade was a 9.56% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Olivier Pomel sold 127,141 shares of the stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $286.71, for a total transaction of $36,452,596.11. Following the sale, the chief executive officer directly owned 612,747 shares in the company, valued at $175,680,692.37. This trade represents a 17.18% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 1,077,367 shares of company stock valued at $260,947,004. 6.48% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Datadog

Large investors have recently bought and sold shares of the business. Brighton Jones LLC bought a new stake in shares of Datadog in the 4th quarter worth approximately $209,000. Bison Wealth LLC bought a new position in Datadog during the 4th quarter worth $228,000. Empowered Funds LLC increased its position in Datadog by 7.0% in the first quarter. Empowered Funds LLC now owns 10,313 shares of the company’s stock worth $1,023,000 after buying an additional 672 shares during the period. Geneos Wealth Management Inc. increased its position in Datadog by 17.6% in the first quarter. Geneos Wealth Management Inc. now owns 769 shares of the company’s stock worth $76,000 after buying an additional 115 shares during the period. Finally, Sivia Capital Partners LLC bought a new stake in Datadog in the second quarter valued at $509,000. Institutional investors own 78.29% of the company’s stock.

About Datadog

Datadog, Inc (NASDAQ:DDOG) is a cloud-based software company that provides monitoring, observability, security and analytics tools for modern applications and information technology environments. Its platform helps organizations collect, correlate and analyze data from servers, databases, applications, containers, networks and cloud services in a unified environment.

The company’s products include infrastructure monitoring, application performance monitoring, log management, real user and synthetic monitoring, database monitoring, cloud security, software delivery tools, incident management and cloud cost management.