Datadog (NASDAQ:DDOG) Trading 3.4% Higher – Still a Buy?

Datadog, Inc. (NASDAQ:DDOG) shares rose 3.4% on Wednesday . The stock traded as high as $255.00 and last traded at $256.0030. 669,823 shares were traded during mid-day trading, a decline of 87% from the average daily volume of 5,349,661 shares. The stock had previously closed at $247.48.

Wall Street Analyst Weigh In

A number of equities analysts recently issued reports on DDOG shares. Piper Sandler reiterated an “overweight” rating and issued a $275.00 target price (up from $230.00) on shares of Datadog in a report on Wednesday, June 10th. Zacks Research cut Datadog from a “strong-buy” rating to a “hold” rating in a research report on Monday, August 17th. Robert W. Baird set a $300.00 price objective on shares of Datadog in a report on Friday, August 7th. Craig Hallum initiated coverage on Datadog in a report on Monday, June 15th. They set a “buy” rating on the stock. Finally, Barclays raised their target price on Datadog from $260.00 to $290.00 and gave the company an “overweight” rating in a research report on Tuesday, July 21st. Two research analysts have rated the stock with a Strong Buy rating, thirty-eight have assigned a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $276.66.

Datadog Stock Up 1.9%

The firm has a market capitalization of $90.52 billion, a PE ratio of 514.30, a PEG ratio of 23.92 and a beta of 1.49. 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 company’s 50 day simple moving average is $241.96 and its 200-day simple moving average is $203.43.

Datadog (NASDAQ:DDOG) 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 net margin of 4.48% and a return on equity of 5.67%. The business had revenue of $1.12 billion during the quarter, compared to analysts’ expectations of $1.08 billion. During the same quarter in the previous year, the company earned $0.46 EPS. The business’s quarterly 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. On average, analysts forecast that Datadog, Inc. will post 0.7 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CFO David Obstler sold 40,000 shares of the business’s stock in a transaction that occurred 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 directly owned 378,067 shares of the company’s stock, valued at approximately $85,998,900.49. The trade was a 9.57% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible 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 Datadog stock in a transaction dated 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 sale, the chief technology officer directly owned 509,805 shares in the company, valued at $131,142,238.20. The trade was a 9.56% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 1,017,764 shares of company stock valued at $247,210,750 in the last ninety days. Company insiders own 6.48% of the company’s stock.

Institutional Trading of Datadog

A number of hedge funds have recently made changes to their positions in DDOG. Geode Capital Management LLC raised its holdings in Datadog by 2.2% in the 4th quarter. Geode Capital Management LLC now owns 9,056,086 shares of the company’s stock worth $1,227,184,000 after acquiring an additional 197,816 shares during the last quarter. 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 valued at $905,570,000 after buying an additional 1,439,082 shares during the period. First Trust Advisors LP lifted its holdings in shares of Datadog by 81.5% during the 1st quarter. First Trust Advisors LP now owns 3,685,562 shares of the company’s stock valued at $435,081,000 after buying an additional 1,654,429 shares during the period. Norges Bank purchased a new position in shares of Datadog in the 4th quarter worth $469,461,000. Finally, Bank of New York Mellon Corp boosted its stake in shares of Datadog by 30.3% in the 1st quarter. Bank of New York Mellon Corp now owns 2,645,827 shares of the company’s stock worth $312,340,000 after buying an additional 615,090 shares during the last quarter. 78.29% of the stock is owned by institutional investors.

Datadog Company Profile

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.