Datadog (NASDAQ:DDOG) Trading Up 10.6% – Should You Buy?

Datadog, Inc. (NASDAQ:DDOG)’s stock price was up 10.6% during trading on Monday . The stock traded as high as $272.57 and last traded at $273.6710. Approximately 4,021,986 shares changed hands during trading, a decline of 31% from the average daily volume of 5,854,977 shares. The stock had previously closed at $247.35.

Analyst Ratings Changes

Several equities research analysts have recently commented on DDOG shares. Barclays boosted their price target on Datadog from $148.00 to $215.00 and gave the stock an “overweight” rating in a research note on Friday, May 8th. CICC Research boosted their price target on Datadog from $150.00 to $204.00 in a research note on Monday, May 11th. Citigroup boosted their price target on Datadog from $175.00 to $218.00 and gave the stock a “buy” rating in a research note on Friday, May 8th. Royal Bank Of Canada upped their target price on Datadog from $219.00 to $250.00 and gave the company an “outperform” rating in a research note on Friday. Finally, Wall Street Zen raised Datadog from a “hold” rating to a “buy” rating in a research note on Saturday, May 16th. One equities research analyst has rated the stock with a Strong Buy rating, forty have given a Buy rating, one has issued a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, Datadog has a consensus rating of “Moderate Buy” and a consensus target price of $219.69.

Datadog Trading Down 3.0%

The company has a current ratio of 3.40, a quick ratio of 3.40 and a debt-to-equity ratio of 0.25. The business has a 50 day moving average of $157.16 and a 200-day moving average of $143.23. The stock has a market cap of $95.80 billion, a PE ratio of 708.26, a price-to-earnings-growth ratio of 29.71 and a beta of 1.56.

Datadog (NASDAQ:DDOG) last posted its earnings results on Thursday, May 7th. The company reported $0.60 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.51 by $0.09. Datadog had a return on equity of 4.83% and a net margin of 3.69%.The firm had revenue of $1.01 billion for the quarter, compared to analyst estimates of $960.12 million. During the same quarter in the prior year, the company earned $0.46 EPS. Datadog’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. On average, analysts anticipate that Datadog, Inc. will post 0.61 EPS for the current year.

Insider Buying and Selling at Datadog

In other Datadog news, CTO Alexis Le-Quoc sold 53,912 shares of the business’s stock in a transaction on Tuesday, March 10th. The stock was sold at an average price of $125.49, for a total value of $6,765,416.88. Following the completion of the transaction, the chief technology officer directly owned 437,257 shares in the company, valued at approximately $54,871,380.93. The trade was a 10.98% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Matthew Jacobson sold 52,832 shares of the business’s stock in a transaction on Friday, May 8th. The shares were sold at an average price of $189.28, for a total value of $10,000,040.96. Following the completion of the transaction, the director owned 622,726 shares of the company’s stock, valued at $117,869,577.28. This trade represents a 7.82% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 848,198 shares of company stock worth $135,415,163. Insiders own 6.48% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the business. Glenmede Trust Co. NA raised its holdings in Datadog by 15.6% in the 1st quarter. Glenmede Trust Co. NA now owns 8,346 shares of the company’s stock valued at $985,000 after acquiring an additional 1,126 shares during the last quarter. Groupe la Francaise raised its holdings in Datadog by 20.4% in the 1st quarter. Groupe la Francaise now owns 93,982 shares of the company’s stock valued at $11,063,000 after acquiring an additional 15,907 shares during the last quarter. Western Wealth Management LLC acquired a new position in Datadog in the 1st quarter valued at $65,000. Janus Henderson Group PLC raised its holdings in 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 acquiring an additional 1,439,082 shares during the last quarter. Finally, Centaurus Financial Inc. raised its holdings in Datadog by 26.6% in the 1st quarter. Centaurus Financial Inc. now owns 1,423 shares of the company’s stock valued at $168,000 after acquiring an additional 299 shares during the last quarter. 78.29% of the stock is currently owned by institutional investors and hedge funds.

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.