Datadog (NASDAQ:DDOG) Downgraded by Zacks Research to “Hold”

Zacks Research lowered shares of Datadog (NASDAQ:DDOG) from a strong-buy rating to a hold rating in a research report sent to investors on Monday,Zacks.com reports.

DDOG has been the subject of a number of other research reports. Evercore boosted their target price on shares of Datadog from $225.00 to $265.00 and gave the company an “outperform” rating in a research report on Wednesday, June 10th. New Street Research set a $260.00 price target on shares of Datadog in a research report on Thursday, June 11th. Oppenheimer lifted their price objective on shares of Datadog from $220.00 to $300.00 and gave the stock an “outperform” rating in a research note on Monday, July 20th. The Goldman Sachs Group reissued a “sell” rating and issued a $158.00 price objective on shares of Datadog in a report on Friday, August 7th. Finally, Citizens Jmp increased 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. One research analyst has rated the stock with a Strong Buy rating, thirty-eight have issued a Buy rating, five have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $276.32.

Datadog Price Performance

Shares of NASDAQ DDOG opened at $246.00 on Monday. The firm has a market cap of $88.33 billion, a P/E ratio of 502.05, a price-to-earnings-growth ratio of 26.87 and a beta of 1.54. The business’s 50 day moving average is $249.61 and its 200-day moving average is $184.12. The company has a current ratio of 3.20, a quick ratio of 3.20 and a debt-to-equity ratio of 0.23. Datadog has a 1-year low of $98.01 and a 1-year high of $292.72.

Datadog (NASDAQ:DDOG) last released its quarterly earnings results on Thursday, August 6th. The company reported $0.65 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.58 by $0.07. Datadog had a return on equity of 5.67% and a net margin of 4.48%.The business had revenue of $1.12 billion during the quarter, compared to the consensus estimate of $1.08 billion. During the same period in the previous year, the company posted $0.46 EPS. The firm’s quarterly revenue was up 35.6% on a year-over-year basis. Datadog has set its Q3 2026 guidance at 0.630-0.650 EPS and its FY 2026 guidance at 2.500-2.540 EPS. Equities research analysts predict that Datadog will post 0.7 earnings per share for the current year.

Insider Buying and Selling

In other news, Director Michael James Callahan sold 112,500 shares of the company’s stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $231.60, for a total transaction of $26,055,000.00. Following the completion of the sale, the director owned 14,996 shares of the company’s stock, valued at approximately $3,473,073.60. This represents a 88.24% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO David M. Obstler sold 75,000 shares of Datadog stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $231.69, for a total transaction of $17,376,750.00. Following the completion of the transaction, the chief financial officer directly owned 434,591 shares in the company, valued at $100,690,388.79. This trade represents a 14.72% 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. In the last ninety days, insiders sold 1,465,134 shares of company stock worth $363,421,509. 6.48% of the stock is owned by company insiders.

Hedge Funds Weigh In On Datadog

Several hedge funds and other institutional investors have recently modified their holdings of the business. JPL Wealth Management LLC acquired a new stake in Datadog in the third quarter valued at about $27,000. NBC Securities Inc. lifted its holdings in shares of Datadog by 242.6% in the fourth quarter. NBC Securities Inc. now owns 233 shares of the company’s stock worth $32,000 after acquiring an additional 165 shares during the last quarter. Rothschild Investment LLC lifted its holdings in shares of Datadog by 52.5% in the fourth quarter. Rothschild Investment LLC now owns 273 shares of the company’s stock worth $37,000 after acquiring an additional 94 shares during the last quarter. Annis Gardner Whiting Capital Advisors LLC boosted its stake in shares of Datadog by 341.7% in the 1st quarter. Annis Gardner Whiting Capital Advisors LLC now owns 318 shares of the company’s stock valued at $38,000 after purchasing an additional 246 shares in the last quarter. Finally, Morse Asset Management Inc acquired a new stake in shares of Datadog in the 4th quarter valued at approximately $44,000. Institutional investors own 78.29% of the company’s stock.

Trending Headlines about Datadog

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Analysts maintain a favorable view of Datadog, with an average rating of “Moderate Buy” and an average price target of $276.32, implying potential upside from recent trading levels. Needham raised its target to $300, DA Davidson maintained a $315 target, and Scotiabank increased its target to $285. Datadog Receives Moderate Buy Rating
• Positive Sentiment: Datadog’s latest quarterly results exceeded expectations: adjusted EPS was $0.65 versus a $0.58 consensus estimate, while revenue reached $1.12 billion, up 35.6% year over year and above the $1.08 billion forecast. The company also issued quarterly and full-year 2026 EPS guidance. Its observability and security products continue to provide exposure to artificial intelligence and cloud-security spending. AI Security Stocks Stand Out
• Neutral Sentiment: Institutional ownership remains substantial at 78.29%, and several funds increased their Datadog positions or initiated new stakes. However, Goldman Sachs retained a “sell” rating with a $158 target, highlighting significant disagreement over the stock’s valuation.
• Negative Sentiment: Director Matthew Jacobson sold a combined 59,424 shares for approximately $15 million across August 13 and 14, reducing his holdings by roughly 10% while retaining 524,708 shares. Director Amit Agarwal separately sold 20,000 shares for about $5 million, leaving him with only 1,640 shares. Agarwal’s transaction was conducted under a pre-arranged Rule 10b5-1 plan, which may lessen its informational significance, but the repeated sales can still weigh on sentiment. Datadog Director Stock Sale Datadog Insider Selling Alert
• Negative Sentiment: Datadog trades at an exceptionally high valuation, with a price-to-earnings ratio above 500 and a PEG ratio near 27. That leaves the stock vulnerable to profit-taking or disappointment if its rapid growth and guidance fail to accelerate enough to justify investor expectations.

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.