Datadog (NASDAQ:DDOG) Stock Rating Lowered by Zacks Research

Datadog (NASDAQ:DDOG) was downgraded by equities research analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a research report issued on Monday,Zacks.com reports.

Other research analysts also recently issued reports about the company. Needham & Company LLC upped their price target on Datadog from $260.00 to $300.00 and gave the stock a “buy” rating in a research note on Friday, August 7th. Arete Research raised their price objective on Datadog from $260.00 to $340.00 and gave the company a “buy” rating in a research note on Tuesday, June 23rd. Wells Fargo & Company boosted their price objective on Datadog from $230.00 to $295.00 and gave the company an “overweight” rating in a report on Monday, July 20th. Truist Financial raised Datadog from a “hold” rating to a “buy” rating and upped their target price for the stock from $190.00 to $300.00 in a research report on Monday, June 15th. Finally, Benchmark reiterated a “buy” rating on shares of Datadog in a report on Tuesday, July 28th. One investment 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 assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $276.32.

Datadog Stock Performance

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

Datadog (NASDAQ:DDOG) last released its earnings results on Thursday, August 6th. The company reported $0.65 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.58 by $0.07. Datadog had a net margin of 4.48% and a return on equity of 5.67%. The company 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 company earned $0.46 EPS. Datadog’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. As a group, equities research analysts expect that Datadog will post 0.7 earnings per share for the current year.

Insider Buying and Selling

In other Datadog news, Director Michael James Callahan sold 112,500 shares of the business’s stock in a transaction on Friday, June 12th. The stock was sold at an average price of $231.60, for a total value of $26,055,000.00. Following the transaction, the director owned 14,996 shares of the company’s stock, valued at approximately $3,473,073.60. The trade was a 88.24% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Dev Ittycheria sold 120,000 shares of the company’s stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $248.78, for a total value of $29,853,600.00. Following the completion of the transaction, the director owned 39,235 shares of the company’s stock, valued at $9,760,883.30. This trade represents a 75.36% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 1,465,134 shares of company stock valued at $363,421,509 over the last quarter. Corporate insiders own 6.48% of the company’s stock.

Hedge Funds Weigh In On Datadog

Several institutional investors have recently added to or reduced their stakes in DDOG. Brighton Jones LLC bought a new position in shares of Datadog during the 4th quarter valued at approximately $209,000. Bison Wealth LLC bought a new stake in shares of Datadog in the 4th quarter worth approximately $228,000. Empowered Funds LLC raised its holdings in shares of Datadog by 7.0% in the 1st quarter. Empowered Funds LLC now owns 10,313 shares of the company’s stock worth $1,023,000 after purchasing an additional 672 shares during the period. Geneos Wealth Management Inc. lifted its stake in Datadog by 17.6% in the first quarter. Geneos Wealth Management Inc. now owns 769 shares of the company’s stock valued at $76,000 after purchasing an additional 115 shares during the last quarter. Finally, Sivia Capital Partners LLC purchased a new position in Datadog in the second quarter valued at approximately $509,000. Institutional investors own 78.29% of the company’s stock.

Key Headlines Impacting 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.