Datadog (NASDAQ:DDOG) Shares Up 6.3% – Here’s Why

Datadog, Inc. (NASDAQ:DDOG) rose 6.3% during mid-day trading on Wednesday . The company traded as high as $222.00 and last traded at $223.3710. Approximately 1,288,936 shares were traded during mid-day trading, a decline of 76% from the average session volume of 5,471,710 shares. The stock had previously closed at $210.23.

Analyst Ratings Changes

DDOG has been the subject of a number of research analyst reports. Capital One Financial raised their price objective on Datadog from $217.00 to $268.00 and gave the company an “overweight” rating in a research report on Wednesday, June 17th. Wedbush initiated coverage on Datadog in a research note on Monday, June 15th. They issued a “neutral” rating on the stock. Robert W. Baird set a $300.00 price objective on Datadog in a report on Friday, August 7th. Wall Street Zen raised shares of Datadog from a “hold” rating to a “buy” rating in a report on Saturday, May 16th. Finally, Benchmark reissued a “buy” rating on shares of Datadog in a research note on Tuesday, July 28th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-eight have issued a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $276.32.

Datadog Trading Up 7.3%

The firm has a market cap of $80.99 billion, a PE ratio of 459.81, a P/E/G ratio of 20.85 and a beta of 1.49. The company has a quick ratio of 3.20, a current ratio of 3.20 and a debt-to-equity ratio of 0.23. The company’s 50 day moving average price is $247.93 and its two-hundred day moving average price is $195.02.

Datadog (NASDAQ:DDOG) last released its quarterly earnings results on Thursday, August 6th. The company reported $0.65 EPS for the quarter, topping analysts’ consensus estimates of $0.58 by $0.07. The firm had revenue of $1.12 billion during the quarter, compared to analysts’ expectations of $1.08 billion. Datadog had a net margin of 4.48% and a return on equity of 5.67%. The firm’s revenue for the quarter was up 35.6% compared to the same quarter last year. During the same period in the previous year, the company earned $0.46 EPS. 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, sell-side analysts forecast that Datadog, Inc. will post 0.7 EPS for the current year.

Insider Buying and Selling at Datadog

In other Datadog news, CTO Alexis Le-Quoc sold 53,912 shares of the company’s stock in a transaction dated Wednesday, July 8th. The shares were sold at an average price of $257.24, for a total value of $13,868,322.88. Following the transaction, the chief technology officer directly owned 509,805 shares in the company, valued at $131,142,238.20. This represents a 9.56% decrease in their position. The sale was disclosed in a legal 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 127,141 shares of the firm’s stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $286.71, for a total value of $36,452,596.11. Following the transaction, the chief executive officer owned 612,747 shares in the company, valued at $175,680,692.37. The trade was a 17.18% decrease in their ownership of the stock. 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 1,132,246 shares of company stock worth $275,773,952 over the last 90 days. Company insiders own 6.48% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in DDOG. JPL Wealth Management LLC bought a new stake in shares of Datadog in the 3rd quarter valued at about $27,000. EMC Capital Management bought a new position in shares of Datadog during the 2nd quarter worth approximately $28,000. Cornerstone Financial Management LLC lifted its position in Datadog by 54.9% during the second quarter. Cornerstone Financial Management LLC now owns 127 shares of the company’s stock valued at $33,000 after acquiring an additional 45 shares during the last quarter. Rothschild Investment LLC lifted its position in Datadog by 52.5% during the fourth quarter. Rothschild Investment LLC now owns 273 shares of the company’s stock valued at $37,000 after acquiring an additional 94 shares during the last quarter. Finally, Annis Gardner Whiting Capital Advisors LLC boosted its stake in Datadog by 341.7% in the first quarter. Annis Gardner Whiting Capital Advisors LLC now owns 318 shares of the company’s stock valued at $38,000 after acquiring an additional 246 shares in the last quarter. 78.29% of the stock is currently owned by hedge funds and other institutional investors.

About Datadog

Datadog, Inc (NASDAQ:DDOG) is a cloud-based software company that provides monitoring, observability, security and analytics tools for modern applications and information technology environments. Its platform helps organizations collect, correlate and analyze data from servers, databases, applications, containers, networks and cloud services in a unified environment.

The company’s products include infrastructure monitoring, application performance monitoring, log management, real user and synthetic monitoring, database monitoring, cloud security, software delivery tools, incident management and cloud cost management.