Datadog (NASDAQ:DDOG) Hits New 12-Month High – Should You Buy?

Datadog, Inc. (NASDAQ:DDOG) shares hit a new 52-week high during mid-day trading on Thursday . The company traded as high as $292.72 and last traded at $283.17, with a volume of 5633324 shares traded. The stock had previously closed at $288.15.

More Datadog News

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Analysts continue to raise their expectations. Cantor Fitzgerald lifted its price target to $327 and maintained an overweight rating, while Canaccord Genuity raised its target to $295 and Rosenblatt Securities increased its target to $305; all three firms retained buy-equivalent ratings. These revisions reflect confidence in Datadog’s AI products, platform expansion and demand for observability and security tools. Cantor Fitzgerald price target article
• Positive Sentiment: Datadog enters its earnings report with solid operating momentum. The company’s prior quarter delivered revenue of $1.01 billion, up 32.1% year over year, and adjusted earnings of $0.60 per share, exceeding consensus estimates. Investors are looking for continued customer additions, usage growth and traction from AI-related products in the upcoming results. Datadog Q2 earnings outlook
• Neutral Sentiment: Datadog will present at several investor conferences, including Canaccord Genuity’s Growth Conference on August 12, Citi’s Global TMT Conference on September 8 and Goldman Sachs’ Communacopia & Technology Conference. The events could provide updates on demand, AI adoption and guidance, but the announcement itself does not change financial forecasts. Datadog investor conferences announcement
• Negative Sentiment: Valuation and earnings risk remain significant. Datadog trades at a very high earnings multiple, so any shortfall in revenue growth, margins, customer metrics or forward guidance could trigger volatility. The company is expected to report quarterly earnings on Thursday, making the near-term reaction especially dependent on results relative to elevated expectations. Datadog Q2 earnings preview
• Negative Sentiment: Director Amit Agarwal sold 20,000 shares for approximately $5.3 million, reducing his direct ownership by more than 92%. The sale was conducted under a pre-arranged Rule 10b5-1 plan, limiting its bearish significance, but repeated insider selling may still weigh modestly on sentiment. SEC insider transaction filing

Wall Street Analyst Weigh In

A number of analysts have commented on the stock. Morgan Stanley boosted their price target on shares of Datadog from $225.00 to $300.00 and gave the company an “overweight” rating in a research note on Tuesday, July 28th. Sanford C. Bernstein lowered shares of Datadog from an “outperform” rating to a “market perform” rating and raised their price objective for the company from $180.00 to $226.00 in a research note on Monday, July 6th. Rothschild & Co Redburn assumed coverage on shares of Datadog in a report on Thursday, April 23rd. They set a “buy” rating and a $170.00 price objective for the company. Wall Street Zen upgraded shares of Datadog from a “hold” rating to a “buy” rating in a report on Saturday, May 16th. Finally, Jefferies Financial Group cut shares of Datadog from a “buy” rating to a “hold” rating and raised their price target for the company from $210.00 to $280.00 in a research report on Tuesday, July 21st. Two analysts have rated the stock with a Strong Buy rating, thirty-nine have issued a Buy rating, three have given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $271.57.

Datadog Stock Performance

The company’s 50 day moving average price is $249.48 and its 200-day moving average price is $176.68. The stock has a market cap of $100.80 billion, a P/E ratio of 745.20, a price-to-earnings-growth ratio of 29.19 and a beta of 1.54. The company has a debt-to-equity ratio of 0.25, a quick ratio of 3.40 and a current ratio of 3.40.

Datadog (NASDAQ:DDOG) last released its quarterly earnings results on Thursday, May 7th. The company reported $0.60 earnings per share for the quarter, beating analysts’ consensus estimates of $0.51 by $0.09. Datadog had a net margin of 3.69% and a return on equity of 4.83%. The company had revenue of $1.01 billion for the quarter, compared to analyst estimates of $960.12 million. During the same period last year, the firm earned $0.46 earnings per share. The firm’s revenue was up 32.1% on a year-over-year basis. Equities analysts forecast that Datadog, Inc. will post 0.64 EPS for the current fiscal year.

Insider Activity

In other news, Director Michael James Callahan sold 12,500 shares of the business’s stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $267.47, for a total value of $3,343,375.00. Following the transaction, the director owned 14,996 shares in the company, valued at $4,010,980.12. The trade was a 45.46% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Olivier Pomel sold 47,054 shares of the company’s stock in a transaction that occurred on Thursday, July 23rd. The shares were sold at an average price of $244.79, for a total value of $11,518,348.66. Following the completion of the transaction, the chief executive officer directly owned 612,747 shares of the company’s stock, valued at approximately $149,994,338.13. This represents a 7.13% 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. In the last 90 days, insiders have sold 1,437,118 shares of company stock worth $337,708,784. Corporate insiders own 6.48% of the company’s stock.

Institutional Trading of Datadog

A number of hedge funds have recently bought and sold shares of DDOG. Brighton Jones LLC purchased a new position in shares of Datadog in the 4th quarter worth about $209,000. Bison Wealth LLC bought a new position in Datadog during the fourth quarter valued at about $228,000. Empowered Funds LLC increased its holdings in Datadog by 7.0% during the first quarter. Empowered Funds LLC now owns 10,313 shares of the company’s stock worth $1,023,000 after buying an additional 672 shares during the last quarter. Geneos Wealth Management Inc. increased its holdings in Datadog by 17.6% during the first quarter. Geneos Wealth Management Inc. now owns 769 shares of the company’s stock worth $76,000 after buying an additional 115 shares during the last quarter. Finally, Sivia Capital Partners LLC bought a new stake in Datadog in the second quarter worth about $509,000. 78.29% of the stock is currently owned by 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.