Datadog (NASDAQ:DDOG) Receives “Buy” Rating from DA Davidson

Datadog (NASDAQ:DDOG)‘s stock had its “buy” rating reissued by investment analysts at DA Davidson in a research note issued to investors on Friday,Benzinga reports. They presently have a $315.00 price target on the stock. DA Davidson’s price objective would indicate a potential upside of 37.38% from the stock’s previous close.

Other analysts have also recently issued research reports about the stock. Needham & Company LLC reissued a “buy” rating on shares of Datadog in a research report on Friday. BTIG Research upped their price objective on Datadog from $255.00 to $289.00 and gave the stock a “buy” rating in a research report on Tuesday, July 28th. Wells Fargo & Company lifted their target price on Datadog from $230.00 to $295.00 and gave the company an “overweight” rating in a report on Monday, July 20th. Citigroup upped their price target on Datadog from $270.00 to $300.00 and gave the stock a “buy” rating in a report on Tuesday, July 28th. Finally, Evercore boosted their price objective on Datadog from $225.00 to $265.00 and gave the stock an “outperform” rating in a research report on Wednesday, June 10th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-eight have given a Buy rating, three have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, Datadog currently has an average rating of “Moderate Buy” and an average price target of $272.48.

Datadog Stock Down 19.0%

Shares of NASDAQ DDOG opened at $229.29 on Friday. The company has a quick ratio of 3.40, a current ratio of 3.40 and a debt-to-equity ratio of 0.25. The business’s 50 day moving average is $249.56 and its two-hundred day moving average is $177.45. Datadog has a 52-week low of $98.01 and a 52-week high of $292.72. The firm has a market cap of $81.62 billion, a price-to-earnings ratio of 603.41, a PEG ratio of 28.69 and a beta of 1.54.

Datadog (NASDAQ:DDOG) last posted its quarterly earnings data 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 4.83% and a net margin of 3.69%.The firm had revenue of $1.12 billion for the quarter, compared to the consensus estimate of $1.08 billion. During the same quarter in the previous year, the business earned $0.46 EPS. The company’s quarterly revenue was up 35.6% compared to the same quarter last year. Datadog has set its Q3 2026 guidance at 0.630-0.650 EPS and its FY 2026 guidance at 2.500-2.540 EPS. Research analysts predict that Datadog will post 0.64 EPS for the current year.

Insider Transactions at Datadog

In related news, Director Michael James Callahan sold 112,500 shares of the business’s stock in a transaction on Friday, June 12th. The shares were sold at an average price of $231.60, for a total value of $26,055,000.00. Following the completion of the sale, the director directly owned 14,996 shares of the company’s stock, valued at $3,473,073.60. The trade was a 88.24% decrease in their ownership of the stock. 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, CTO Alexis Le-Quoc sold 53,912 shares of the company’s stock in a transaction on Monday, June 1st. The shares were sold at an average price of $271.05, for a total transaction of $14,612,847.60. Following the completion of the transaction, the chief technology officer owned 531,311 shares of the company’s stock, valued at $144,011,846.55. This represents a 9.21% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 1,375,022 shares of company stock valued at $327,029,246 over the last three months. 6.48% of the stock is owned by corporate insiders.

Institutional Trading of Datadog

Several institutional investors and hedge funds have recently made changes to their positions in DDOG. Brighton Jones LLC purchased a new stake in Datadog in the fourth quarter valued at approximately $209,000. Bison Wealth LLC purchased a new stake in Datadog in the 4th quarter valued at $228,000. Empowered Funds LLC raised its position in Datadog by 7.0% in the 1st quarter. Empowered Funds LLC now owns 10,313 shares of the company’s stock valued at $1,023,000 after purchasing an additional 672 shares during the last quarter. Geneos Wealth Management Inc. boosted its stake in Datadog by 17.6% during the 1st quarter. Geneos Wealth Management Inc. now owns 769 shares of the company’s stock worth $76,000 after purchasing an additional 115 shares during the period. Finally, Sivia Capital Partners LLC purchased a new position in Datadog during the 2nd quarter worth $509,000. 78.29% of the stock is owned by hedge funds and other institutional investors.

More Datadog News

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Datadog reported second-quarter revenue of $1.12 billion, up 35.6% year over year and above the $1.08 billion consensus estimate. Adjusted earnings of $0.65 per share also exceeded expectations of $0.58, compared with $0.46 in the year-earlier period. Datadog Q2 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Management raised its fiscal 2026 outlook to approximately $4.45 billion-$4.47 billion in revenue and $2.50-$2.54 in earnings per share. Third-quarter EPS guidance of $0.63-$0.65 was also above the $0.52 analyst consensus. Datadog Beats and Raises Outlook
• Neutral Sentiment: Director Michael James Callahan sold 12,500 shares worth approximately $3.6 million under a pre-arranged Rule 10b5-1 trading plan. The planned nature of the transaction makes it a limited near-term signal about Datadog’s operating outlook. Datadog Director Stock Sale Filing
• Negative Sentiment: Investors were concerned about cooling bookings growth and management’s warning that reduced usage from a major artificial-intelligence customer could weigh on future consumption-based revenue. Management deliberately de-risked its guidance because of this customer exposure. Datadog Warns of Lower AI Customer Usage
• Negative Sentiment: The results were not strong enough to satisfy a market pricing in near-perfect execution. Datadog’s very high valuation, recent rally, and revenue guidance that was broadly in line with expectations intensified profit-taking and the subsequent valuation reset. Datadog Stock Falls on Cooling Bookings

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.