Datadog, Inc. (NASDAQ:DDOG) Receives Average Rating of “Moderate Buy” from Brokerages

Datadog, Inc. (NASDAQ:DDOG) has been assigned a consensus recommendation of “Moderate Buy” from the forty-five analysts that are currently covering the company, Marketbeat reports. One investment analyst has rated the stock with a sell recommendation, four have assigned a hold recommendation, thirty-eight have issued a buy recommendation and two have given a strong buy recommendation to the company. The average 12-month price objective among brokers that have issued ratings on the stock in the last year is $276.6591.

DDOG has been the topic of a number of recent analyst reports. BMO Capital Markets set a $300.00 target price on shares of Datadog in a research note on Friday, August 7th. Oppenheimer boosted their price target 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. Capital One Financial increased their price target on shares of Datadog from $217.00 to $268.00 and gave the stock an “overweight” rating in a report on Wednesday, June 17th. Rosenblatt Securities increased their price target on shares of Datadog from $220.00 to $305.00 and gave the stock a “buy” rating in a report on Tuesday, August 4th. Finally, Arete Research raised their price objective on shares of Datadog from $260.00 to $340.00 and gave the company a “buy” rating in a research report on Tuesday, June 23rd.

Datadog Price Performance

Shares of NASDAQ DDOG opened at $230.79 on Friday. The firm has a market capitalization of $82.87 billion, a P/E ratio of 471.01, a P/E/G ratio of 22.47 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 stock’s 50-day simple moving average is $243.95 and its two-hundred day simple moving average is $199.87. Datadog has a twelve month low of $98.01 and a twelve month high of $292.72.

Datadog (NASDAQ:DDOG) last issued its quarterly 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 return on equity of 5.67% and a net margin of 4.48%.The firm had revenue of $1.12 billion during the quarter, compared to the consensus estimate of $1.08 billion. During the same quarter last year, the company posted $0.46 EPS. The company’s revenue for the quarter 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. As a group, equities analysts anticipate that Datadog will post 0.7 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CEO Olivier Pomel sold 127,141 shares of the business’s stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $286.71, for a total value of $36,452,596.11. Following the completion of the sale, the chief executive officer directly owned 612,747 shares in the company, valued at approximately $175,680,692.37. The trade was a 17.18% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through 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 Wednesday, July 8th. The shares were sold at an average price of $257.24, for a total transaction of $13,868,322.88. Following the completion of the sale, the chief technology officer directly owned 509,805 shares of the company’s stock, valued at $131,142,238.20. This trade represents a 9.56% decrease in their position. 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 three months, insiders sold 1,060,988 shares of company stock worth $256,761,957. 6.48% of the stock is owned by insiders.

Institutional Investors Weigh In On Datadog

Hedge funds and other institutional investors have recently modified their holdings of the stock. Geode Capital Management LLC boosted its holdings in Datadog by 2.2% during the 4th quarter. Geode Capital Management LLC now owns 9,056,086 shares of the company’s stock valued at $1,227,184,000 after acquiring an additional 197,816 shares during the period. Janus Henderson Group PLC grew its position in Datadog by 22.8% during the 1st quarter. Janus Henderson Group PLC now owns 7,749,569 shares of the company’s stock worth $905,570,000 after acquiring an additional 1,439,082 shares during the last quarter. Norges Bank purchased a new position in Datadog in the 4th quarter worth approximately $469,461,000. First Trust Advisors LP increased its stake in Datadog by 81.5% in the 1st quarter. First Trust Advisors LP now owns 3,685,562 shares of the company’s stock worth $435,081,000 after purchasing an additional 1,654,429 shares during the period. Finally, Bank of New York Mellon Corp lifted its position in Datadog by 30.3% in the first quarter. Bank of New York Mellon Corp now owns 2,645,827 shares of the company’s stock valued at $312,340,000 after purchasing an additional 615,090 shares during the last quarter. Institutional investors own 78.29% of the company’s stock.

Datadog News Roundup

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Datadog’s recurring-revenue software model and expected long-term cash generation could make the stock attractive despite its substantial three-year gains. The bullish case rests on continued expansion in observability, security and cloud-management products. Datadog (DDOG) Stock Could Be A Bargain On Cash Flow
• Positive Sentiment: Analyst sentiment remains broadly favorable. Datadog has a consensus “Moderate Buy” rating, with an average price target of approximately $276.66, well above the recent trading range. Recent targets include $300 from Robert W. Baird, $285 from Scotiabank and $340 from Arete Research. Analysts’ Opinions Are Mixed on These Technology Stocks
• Neutral Sentiment: Recent commentary highlights a debate over whether analyst optimism sufficiently justifies Datadog’s premium valuation relative to other observability and security companies. The stock trades at a very high earnings multiple, making future growth and cash-flow execution especially important. Is Analyst Optimism Enough To Justify Datadog’s Premium Valuation?
• Neutral Sentiment: Institutional ownership is substantial at about 78.3%, and several investment managers increased or initiated positions during the second quarter. That suggests continued institutional interest, though it does not guarantee near-term buying pressure.
• Negative Sentiment: Several executives reported stock sales, including the CFO’s sale of 64,000 shares, the general counsel’s sale of 5,280 shares and the CRO’s sale of 11,710 shares. The transactions were made under pre-arranged Rule 10b5-1 plans, reducing their value as a direct bearish signal, but the concentration of selling may weigh on sentiment.

Datadog Company Profile

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.