Datadog (NASDAQ:DDOG) Stock Price Target Cut by Wells Fargo & Company

Datadog (NASDAQ:DDOG) had its price objective reduced by Wells Fargo & Company from $325.00 to $300.00 in a note issued to investors on Thursday, Benzinga reports. The brokerage currently has an “overweight” rating on the stock. Wells Fargo & Company‘s price target points to a potential upside of 67.56% from the company’s previous close.

Several other brokerages also recently issued reports on DDOG. The Goldman Sachs Group reissued a “sell” rating and issued a $158.00 price target on shares of Datadog in a report on Friday, August 7th. Needham & Company LLC restated a “buy” rating and set a $300.00 price objective on shares of Datadog in a research note on Wednesday. Citizens Jmp increased their target price on Datadog from $225.00 to $311.00 and gave the stock a “market outperform” rating in a research report on Monday, July 20th. Evercore reiterated an “outperform” rating and issued a $300.00 target price on shares of Datadog in a research note on Monday, November 2nd. Finally, Royal Bank Of Canada cut their target price on Datadog from $320.00 to $270.00 and set an “outperform” rating on the stock in a research note on Thursday. Two investment analysts have rated the stock with a Strong Buy rating, thirty-eight have issued a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, Datadog presently has an average rating of “Moderate Buy” and a consensus price target of $278.43.

Datadog Stock Performance

DDOG stock traded up $4.44 during trading on Thursday, hitting $179.04. 5,937,232 shares of the company’s stock traded hands, compared to its average volume of 3,026,833. The company has a quick ratio of 3.20, a current ratio of 3.20 and a debt-to-equity ratio of 0.23. Datadog has a 52 week low of $98.01 and a 52 week high of $300.68. The stock has a fifty day moving average price of $247.75 and a two-hundred day moving average price of $200.01. The stock has a market capitalization of $64.29 billion, a price-to-earnings ratio of 252.17, a price-to-earnings-growth ratio of 21.09 and a beta of 1.50.

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

Insiders Place Their Bets

In related news, CTO Alexis Le-Quoc sold 53,912 shares of the stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $253.36, for a total value of $13,659,144.32. Following the completion of the transaction, the chief technology officer directly owned 509,805 shares of the company’s stock, valued at $129,164,194.80. This represents a 9.56% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO David Obstler sold 40,000 shares of the firm’s stock in a transaction that occurred on Monday, September 14th. The shares were sold at an average price of $227.47, for a total value of $9,098,800.00. Following the completion of the sale, the chief financial officer owned 378,067 shares in the company, valued at approximately $85,998,900.49. This represents a 9.57% 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. In the last ninety days, insiders have sold 745,293 shares of company stock valued at $175,536,548. Corporate insiders own 6.48% of the company’s stock.

Institutional Investors Weigh In On Datadog

Institutional investors have recently added to or reduced their stakes in the company. Shah Wealth Advisors LLC acquired a new stake in Datadog during the third quarter valued at approximately $214,000. Diversified Trust Co boosted its holdings in Datadog by 6.4% during the third quarter. Diversified Trust Co now owns 5,963 shares of the company’s stock worth $1,633,000 after buying an additional 358 shares in the last quarter. Allworth Financial LP grew its position in Datadog by 5.0% in the third quarter. Allworth Financial LP now owns 4,979 shares of the company’s stock worth $1,296,000 after buying an additional 237 shares during the last quarter. Private Advisory Group LLC grew its position in Datadog by 47.2% in the third quarter. Private Advisory Group LLC now owns 6,239 shares of the company’s stock worth $1,709,000 after buying an additional 2,000 shares during the last quarter. Finally, R Squared Ltd grew its position in Datadog by 14.2% in the third quarter. R Squared Ltd now owns 1,457 shares of the company’s stock worth $399,000 after buying an additional 181 shares during the last quarter. 78.29% of the stock is currently owned by institutional investors and hedge funds.

Datadog News Roundup

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Datadog beat Q3 estimates, reporting $1.20 billion in revenue, up 35.2% year over year, and adjusted EPS of $0.81 versus a $0.64 consensus. Infrastructure Monitoring annual recurring revenue also topped $2 billion, with broad-based platform use and AI adoption supporting demand. Article: Datadog’s Infrastructure Monitoring Tops $2B ARR in Q3, Revenues Beat
• Neutral Sentiment: Some analysts still see upside: several firms retained Buy or Overweight ratings even while trimming price targets. One valuation analysis also argues the share price may be supportable by future cash generation, though that depends on expectations for growth and AI demand. Article: Datadog Stock Could Still Be Undervalued As AI Hopes Swing
• Negative Sentiment: Investors remain wary of the outlook: Q4 guidance and customer-related factors signal a potential slowdown from Q3’s growth, while AI-customer discounts and lower-priced renewals may temper revenue growth. The forecast also relies on a minimum commitment from Datadog’s largest customer, adding uncertainty. Article: DDOG Q3 Earnings Call Highlights AI Growth and Customer Renewals
• Negative Sentiment: Multiple firms cut their price targets after the results—including Rosenblatt, TD Cowen, Wells Fargo, Citigroup and Wedbush. Though ratings remained favorable in several reports, the reductions suggest analysts are tempering near-term expectations. Article: Rosenblatt Lowers Datadog Price Target Article: Wedbush Sets New Datadog Price Target

About Datadog

Datadog, Inc provides a cloud-based monitoring and security platform that helps organizations observe and manage their technology environments. Its tools collect and analyze data from applications, infrastructure, networks, and other systems to help teams detect issues and improve performance.

The company’s products include infrastructure monitoring, application performance monitoring, log management, digital experience monitoring, database and network monitoring, and security tools. Datadog also offers capabilities for incident management and cloud security.

Founded in 2010 by Olivier Pomel and Alexis Lê-Quôc, Datadog serves customers around the world.