Datadog (NASDAQ:DDOG) Stock Price Target Lowered at Wedbush

Datadog (NASDAQ:DDOG) had its price target dropped by equities researchers at Wedbush from $275.00 to $240.00 in a research note issued to investors on Thursday, Benzinga reports. The firm currently has an “outperform” rating on the stock. Wedbush‘s target price would suggest a potential upside of 27.17% from the stock’s current price.

A number of other analysts have also issued reports on the company. Benchmark reissued a “buy” rating on shares of Datadog in a research report on Tuesday, July 28th. Canadian Imperial Bank of Commerce boosted their price target on shares of Datadog from $280.00 to $315.00 and gave the stock an “outperform” rating in a report on Friday, October 9th. Yorkville Ives assumed coverage on Datadog in a report on Monday, October 5th. They issued an “outperform” rating and a $335.00 price target for the company. BTIG Research reduced their price objective on Datadog from $289.00 to $260.00 and set a “buy” rating for the company in a research note on Wednesday. Finally, Needham & Company LLC reaffirmed a “buy” rating and set a $300.00 price objective on shares of Datadog in a research note on Wednesday. Two research analysts have rated the stock with a Strong Buy rating, forty-one have issued a Buy rating, three have assigned a Hold rating and one has assigned 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 $282.30.

Datadog Stock Down 14.4%

Shares of DDOG opened at $188.72 on Thursday. The stock has a 50 day moving average price of $250.09 and a 200 day moving average price of $199.43. The stock has a market capitalization of $67.77 billion, a price-to-earnings ratio of 385.15, a PEG ratio of 21.50 and a beta of 1.50. The company has a debt-to-equity ratio of 0.23, a quick ratio of 3.20 and a current ratio of 3.20. Datadog has a one year low of $98.01 and a one year high of $300.68.

Datadog (NASDAQ:DDOG) last posted its quarterly earnings results on Wednesday, November 4th. The company reported $0.81 earnings per share for the quarter, topping the consensus estimate of $0.64 by $0.17. The firm had revenue of $1.20 billion for the quarter, compared to the consensus estimate of $1.15 billion. Datadog had a net margin of 4.48% and a return on equity of 5.67%. The company’s revenue for the quarter was up 35.2% on a year-over-year basis. During the same period last year, the firm posted $0.55 earnings per share. Equities research analysts forecast that Datadog will post 0.70 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CFO David Obstler sold 10,000 shares of the stock in a transaction dated Monday, September 21st. The shares were sold at an average price of $241.25, for a total transaction of $2,412,500.00. Following the transaction, the chief financial officer directly owned 368,067 shares in the company, valued at $88,796,163.75. This represents a 2.65% 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, insider Yanbing Li sold 12,700 shares of Datadog stock in a transaction that occurred on Friday, September 11th. The shares were sold at an average price of $221.26, for a total transaction of $2,810,002.00. Following the transaction, the insider directly owned 250,446 shares in the company, valued at approximately $55,413,681.96. This trade represents a 4.83% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 745,293 shares of company stock valued at $175,536,548. Insiders own 6.48% of the company’s stock.

Institutional Trading of Datadog

A number of large investors have recently modified their holdings of DDOG. New York Life Investment Management LLC boosted its stake in Datadog by 10.7% in the 3rd quarter. New York Life Investment Management LLC now owns 56,217 shares of the company’s stock worth $15,395,000 after buying an additional 5,450 shares during the last quarter. 71 West Capital Partners increased its position in Datadog by 0.9% in the third quarter. 71 West Capital Partners now owns 88,240 shares of the company’s stock worth $24,165,000 after buying an additional 806 shares during the period. Gryphon Financial Partners LLC increased its holdings in shares of Datadog by 15.2% during the third quarter. Gryphon Financial Partners LLC now owns 1,026 shares of the company’s stock valued at $281,000 after purchasing an additional 135 shares during the period. Kestra Investment Management LLC lifted its holdings in Datadog by 29.5% in the 3rd quarter. Kestra Investment Management LLC now owns 1,132 shares of the company’s stock valued at $310,000 after acquiring an additional 258 shares during the last quarter. Finally, AlphaCore Capital LLC boosted its holdings in shares of Datadog by 57.9% in the third quarter. AlphaCore Capital LLC now owns 2,279 shares of the company’s stock worth $624,000 after buying an additional 836 shares during the period. Institutional investors and hedge funds own 78.29% of the company’s stock.

More Datadog News

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Q3 revenue rose 35.2% year over year to $1.20 billion, ahead of estimates, while adjusted EPS of $0.81 topped the $0.64 consensus. Datadog also raised its full-year outlook and reported continued product adoption, including growth in its larger-customer base. Datadog Q3 results
• Positive Sentiment: Longer-term demand indicators were encouraging: revenue from customers outside AI grew in the high-20% range, and infrastructure-monitoring ARR exceeded $2 billion. Long-term investor takeaways
• Neutral Sentiment: Cantor Fitzgerald and BTIG lowered their price targets to $260 while retaining Overweight and Buy ratings, respectively; Needham reaffirmed Buy with a $300 target. The target cuts signal more cautious expectations despite continued bullish ratings. Cantor Fitzgerald rating
• Negative Sentiment: Q4 revenue guidance points to a slowdown from Q3’s 35% growth—roughly 26% year-over-year growth in one analysis, with revenue expected near Q3’s level. Investors may see the outlook as a deceleration even though Q3 beat estimates. Datadog rating downgrade analysis
• Negative Sentiment: Management said reduced usage by a major AI customer weighed on growth. That customer concentration and spending volatility add uncertainty to the outlook, while Datadog’s premium valuation leaves the stock vulnerable if growth expectations ease. Major customer usage report

About Datadog

Datadog, Inc is a technology company that provides a cloud-based monitoring and security platform for applications, infrastructure and other technology environments. Its platform helps organizations collect, analyze and visualize data from servers, databases, containers, cloud services, applications and user interactions in a unified environment.

Datadog’s products include infrastructure monitoring, application performance monitoring, log management, real user monitoring, synthetic monitoring, network performance monitoring, cloud security, software delivery tools and incident-management capabilities.