Datadog’s (DDOG) “Buy” Rating Reaffirmed at DA Davidson

Datadog (NASDAQ:DDOG)‘s stock had its “buy” rating reaffirmed by analysts at DA Davidson in a note issued to investors on Friday,Benzinga reports. They presently have a $315.00 target price on the stock. DA Davidson’s target price would suggest a potential upside of 37.38% from the company’s previous close.

A number of other analysts also recently weighed in on DDOG. BTIG Research lifted their price target on Datadog from $255.00 to $289.00 and gave the company a “buy” rating in a research note on Tuesday, July 28th. Raymond James Financial reissued an “outperform” rating and issued a $280.00 target price on shares of Datadog in a report on Thursday. Citizens Jmp boosted their target price on shares of Datadog from $225.00 to $311.00 and gave the stock a “market outperform” rating in a research report on Monday, July 20th. Morgan Stanley upped their price target on shares of Datadog from $225.00 to $300.00 and gave the stock an “overweight” rating in a research note on Tuesday, July 28th. Finally, Canadian Imperial Bank of Commerce increased their price target on shares of Datadog from $250.00 to $280.00 and gave the company an “outperform” rating in a report on Wednesday, June 10th. Two investment analysts have rated the stock with a Strong Buy rating, thirty-eight have given a Buy rating, three have issued a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $272.48.

Datadog Trading Down 19.0%

Shares of Datadog stock opened at $229.29 on Friday. The company has a quick ratio of 3.40, a current ratio of 3.40 and a debt-to-equity ratio of 0.25. The firm has a market cap of $81.62 billion, a price-to-earnings ratio of 603.41, a price-to-earnings-growth ratio of 28.69 and a beta of 1.54. Datadog has a 52-week low of $98.01 and a 52-week high of $292.72. The company’s 50-day simple moving average is $249.56 and its 200-day simple moving average is $177.45.

Datadog (NASDAQ:DDOG) last announced its quarterly earnings data on Thursday, August 6th. The company reported $0.65 earnings per share for the quarter, beating analysts’ consensus estimates of $0.58 by $0.07. Datadog had a return on equity of 4.83% and a net margin of 3.69%.The company had revenue of $1.12 billion for the quarter, compared to analyst estimates of $1.08 billion. During the same quarter in the previous year, the company earned $0.46 EPS. The firm’s revenue for the quarter 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. As a group, equities research analysts anticipate that Datadog will post 0.64 earnings per share for the current year.

Insider Transactions at Datadog

In other news, Director Amit Agarwal sold 20,000 shares of the firm’s stock in a transaction on Thursday, July 30th. The stock was sold at an average price of $266.82, for a total value of $5,336,400.00. Following the completion of the transaction, the director owned 1,640 shares in the company, valued at $437,584.80. This trade represents a 92.42% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Michael James Callahan sold 12,500 shares of Datadog stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $287.47, for a total value of $3,593,375.00. Following the transaction, the director directly owned 14,996 shares of the company’s stock, valued at $4,310,900.12. This trade represents a 45.46% 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. Insiders sold a total of 1,375,022 shares of company stock worth $327,029,246 over the last ninety days. 6.48% of the stock is currently owned by company insiders.

Institutional Trading of Datadog

Institutional investors and hedge funds have recently modified their holdings of the business. Elevation Point Wealth Partners LLC grew its holdings in shares of Datadog by 3.3% in the 3rd quarter. Elevation Point Wealth Partners LLC now owns 1,697 shares of the company’s stock valued at $242,000 after acquiring an additional 55 shares in the last quarter. Chicago Partners Investment Group LLC raised its holdings in Datadog by 1.6% during the fourth quarter. Chicago Partners Investment Group LLC now owns 4,778 shares of the company’s stock worth $622,000 after acquiring an additional 73 shares in the last quarter. Vivaldi Capital Management LP raised its holdings in Datadog by 2.8% during the third quarter. Vivaldi Capital Management LP now owns 2,689 shares of the company’s stock worth $383,000 after acquiring an additional 74 shares in the last quarter. State of Wyoming boosted its position in Datadog by 4.1% during the first quarter. State of Wyoming now owns 1,946 shares of the company’s stock valued at $230,000 after purchasing an additional 76 shares during the last quarter. Finally, Farther Finance Advisors LLC grew its stake in Datadog by 2.0% in the fourth quarter. Farther Finance Advisors LLC now owns 3,892 shares of the company’s stock valued at $529,000 after purchasing an additional 78 shares in the last quarter. Hedge funds and other 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: Datadog reported second-quarter revenue of $1.12 billion, up 35.6% year over year and above the $1.08 billion consensus estimate. Adjusted earnings of $0.65 per share also exceeded expectations of $0.58, compared with $0.46 in the year-earlier period. Datadog Q2 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Management raised its fiscal 2026 outlook to approximately $4.45 billion-$4.47 billion in revenue and $2.50-$2.54 in earnings per share. Third-quarter EPS guidance of $0.63-$0.65 was also above the $0.52 analyst consensus. Datadog Beats and Raises Outlook
• Neutral Sentiment: Director Michael James Callahan sold 12,500 shares worth approximately $3.6 million under a pre-arranged Rule 10b5-1 trading plan. The planned nature of the transaction makes it a limited near-term signal about Datadog’s operating outlook. Datadog Director Stock Sale Filing
• Negative Sentiment: Investors were concerned about cooling bookings growth and management’s warning that reduced usage from a major artificial-intelligence customer could weigh on future consumption-based revenue. Management deliberately de-risked its guidance because of this customer exposure. Datadog Warns of Lower AI Customer Usage
• Negative Sentiment: The results were not strong enough to satisfy a market pricing in near-perfect execution. Datadog’s very high valuation, recent rally, and revenue guidance that was broadly in line with expectations intensified profit-taking and the subsequent valuation reset. Datadog Stock Falls on Cooling Bookings

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.