Datadog (NASDAQ:DDOG) Stock Price Down 7.7% – Should You Sell?

Datadog, Inc. (NASDAQ:DDOG)’s stock price dropped 7.7% on Monday . The company traded as low as $107.24 and last traded at $106.7090. Approximately 1,673,189 shares were traded during trading, a decline of 74% from the average daily volume of 6,374,035 shares. The stock had previously closed at $115.66.

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on DDOG. Robert W. Baird set a $180.00 price target on shares of Datadog in a research report on Wednesday, February 11th. BMO Capital Markets set a $165.00 price target on shares of Datadog in a research report on Wednesday, February 11th. Citizens Jmp reaffirmed a “market perform” rating on shares of Datadog in a report on Wednesday, February 11th. TD Cowen reiterated a “buy” rating on shares of Datadog in a research report on Wednesday, January 21st. Finally, Citigroup reduced their target price on shares of Datadog from $200.00 to $175.00 and set a “buy” rating on the stock in a research report on Friday, January 16th. Thirty-six analysts have rated the stock with a Buy rating, four have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $179.62.

Datadog Stock Up 5.6%

The company has a market capitalization of $38.69 billion, a PE ratio of 261.08, a P/E/G ratio of 28.70 and a beta of 1.27. The business has a 50-day moving average of $127.77 and a 200 day moving average of $142.58. The company has a debt-to-equity ratio of 0.26, a current ratio of 3.38 and a quick ratio of 3.38.

Datadog (NASDAQ:DDOG) last posted its quarterly earnings data on Tuesday, February 10th. The company reported $0.59 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.55 by $0.04. The business had revenue of $953.19 million during the quarter, compared to analyst estimates of $916.53 million. Datadog had a return on equity of 4.14% and a net margin of 3.14%.The company’s revenue for the quarter was up 29.2% on a year-over-year basis. During the same period last year, the company earned $0.49 EPS. Datadog has set its FY 2026 guidance at 2.080-2.160 EPS and its Q1 2026 guidance at 0.490-0.510 EPS. Equities research analysts predict that Datadog, Inc. will post 0.34 earnings per share for the current year.

Insider Buying and Selling at Datadog

In other Datadog news, Director Shardul Shah sold 7,916 shares of the company’s stock in a transaction on Tuesday, January 13th. The stock was sold at an average price of $124.89, for a total value of $988,629.24. Following the completion of the sale, the director directly owned 340,701 shares in the company, valued at approximately $42,550,147.89. This represents a 2.27% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Olivier Pomel sold 11,195 shares of the stock in a transaction dated Wednesday, December 17th. The stock was sold at an average price of $137.93, for a total transaction of $1,544,126.35. Following the transaction, the chief executive officer owned 518,133 shares in the company, valued at approximately $71,466,084.69. The trade was a 2.11% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 337,291 shares of company stock worth $48,909,907 over the last quarter. Insiders own 8.70% of the company’s stock.

Hedge Funds Weigh In On Datadog

Institutional investors have recently bought and sold shares of the business. Westside Investment Management Inc. lifted its position in shares of Datadog by 74.3% during the third quarter. Westside Investment Management Inc. now owns 176 shares of the company’s stock valued at $27,000 after buying an additional 75 shares during the last quarter. Rothschild Investment LLC lifted its holdings in shares of Datadog by 126.6% in the 3rd quarter. Rothschild Investment LLC now owns 179 shares of the company’s stock valued at $25,000 after buying an additional 100 shares during the period. Tripletail Wealth Management LLC purchased a new position in shares of Datadog during the 3rd quarter valued at approximately $28,000. Physician Wealth Advisors Inc. increased its holdings in Datadog by 315.2% in the third quarter. Physician Wealth Advisors Inc. now owns 191 shares of the company’s stock valued at $27,000 after buying an additional 145 shares in the last quarter. Finally, JPL Wealth Management LLC purchased a new stake in shares of Datadog in the third quarter valued at approximately $27,000. 78.29% of the stock is owned by hedge funds and other institutional investors.

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.