Datadog (NASDAQ:DDOG) Trading Down 4.2% – Time to Sell?

Datadog, Inc. (NASDAQ:DDOG) shares fell 4.2% during trading on Wednesday . The company traded as low as $212.88 and last traded at $214.4620. Approximately 773,259 shares changed hands during trading, a decline of 86% from the average daily volume of 5,486,618 shares. The stock had previously closed at $223.84.

Analysts Set New Price Targets

DDOG has been the topic of a number of research analyst reports. Guggenheim boosted their price target on shares of Datadog from $225.00 to $300.00 and gave the stock a “buy” rating in a report on Wednesday, July 22nd. Sanford C. Bernstein lowered Datadog from an “outperform” rating to a “market perform” rating and boosted their price objective for the company from $180.00 to $226.00 in a research note on Monday, July 6th. KeyCorp raised their target price on Datadog from $225.00 to $320.00 and gave the stock an “overweight” rating in a research note on Thursday, July 16th. Canaccord Genuity Group lifted their target price on Datadog from $250.00 to $295.00 and gave the company a “buy” rating in a report on Tuesday, August 4th. Finally, Citizens Jmp raised their target price on shares of Datadog from $225.00 to $311.00 and gave the company a “market outperform” rating in a research note on Monday, July 20th. One research analyst has rated the stock with a Strong Buy rating, thirty-eight have issued a Buy rating, five have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $276.32.

Datadog Stock Performance

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 firm has a market capitalization of $75.96 billion, a P/E ratio of 432.86, a PEG ratio of 23.21 and a beta of 1.49. The company has a 50-day simple moving average of $250.57 and a two-hundred day simple moving average of $191.92.

Datadog (NASDAQ:DDOG) last issued its earnings results on Thursday, August 6th. The company reported $0.65 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.58 by $0.07. The firm had revenue of $1.12 billion for the quarter, compared to the consensus estimate of $1.08 billion. Datadog had a net margin of 4.48% and a return on equity of 5.67%. The business’s revenue was up 35.6% on a year-over-year basis. 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, equities analysts forecast that Datadog, Inc. will post 0.7 EPS for the current year.

Insider Buying and Selling at Datadog

In other 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 of the company’s stock, valued at $131,142,238.20. The trade was a 9.56% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO David M. Obstler sold 75,000 shares of the company’s stock in a transaction on Monday, June 8th. The stock was sold at an average price of $231.69, for a total value of $17,376,750.00. Following the completion of the sale, the chief financial officer owned 434,591 shares of the company’s stock, valued at $100,690,388.79. This trade represents a 14.72% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 1,157,386 shares of company stock worth $284,284,936. 6.48% of the stock is owned by insiders.

Hedge Funds Weigh In On Datadog

Several large investors have recently made changes to their positions in DDOG. Nomura Asset Management Co. Ltd. increased its stake in Datadog by 8.0% during the fourth quarter. Nomura Asset Management Co. Ltd. now owns 152,674 shares of the company’s stock worth $20,762,000 after acquiring an additional 11,348 shares during the last quarter. Norges Bank bought a new position in shares of Datadog during the fourth quarter valued at approximately $469,461,000. MUFG Securities EMEA plc lifted its stake in shares of Datadog by 115.6% during the 4th quarter. MUFG Securities EMEA plc now owns 13,342 shares of the company’s stock worth $1,814,000 after acquiring an additional 7,154 shares during the last quarter. BNP Paribas grew its position in Datadog by 18.4% in the 4th quarter. BNP Paribas now owns 41,280 shares of the company’s stock valued at $5,614,000 after acquiring an additional 6,403 shares during the last quarter. Finally, Crossmark Global Holdings Inc. lifted its position in shares of Datadog by 90.1% during the fourth quarter. Crossmark Global Holdings Inc. now owns 9,967 shares of the company’s stock worth $1,355,000 after purchasing an additional 4,723 shares during the last quarter. 78.29% of the stock is currently 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.