Datadog, Inc. (NASDAQ:DDOG) Stock Rated “Moderate Buy” by Sell-Side Brokerages

Datadog, Inc. (NASDAQ:DDOG) has been assigned a consensus recommendation of “Moderate Buy” from the forty-seven research firms that are covering the firm, Marketbeat Ratings reports. One research analyst has rated the stock with a sell rating, three have given a hold rating, forty-one have assigned a buy rating and two have assigned a strong buy rating to the company. The average 1-year target price among brokerages that have updated their coverage on the stock in the last year is $275.46.

Several analysts recently weighed in on DDOG shares. Zacks Research downgraded Datadog from a “strong-buy” rating to a “hold” rating in a research report on Monday, August 17th. FBN Securities initiated coverage on shares of Datadog in a report on Friday, October 2nd. They set an “outperform” rating and a $325.00 price target on the stock. Cantor Fitzgerald decreased their target price on shares of Datadog from $327.00 to $260.00 and set an “overweight” rating on the stock in a research note on Thursday. Wedbush reduced their price objective on Datadog from $275.00 to $240.00 and set an “outperform” rating on the stock in a research report on Thursday. Finally, Jefferies Financial Group reissued a “hold” rating and set a $230.00 price target on shares of Datadog in a research note on Wednesday.

Datadog Trading Down 7.5%

DDOG opened at $174.60 on Friday. Datadog has a twelve month low of $98.01 and a twelve month high of $300.68. The company has a 50-day simple moving average of $249.02 and a 200 day simple moving average of $199.70. The company has a quick ratio of 3.20, a current ratio of 3.51 and a debt-to-equity ratio of 0.21. The stock has a market capitalization of $62.70 billion, a price-to-earnings ratio of 227.37, a P/E/G ratio of 18.40 and a beta of 1.50.

Datadog (NASDAQ:DDOG) last released its earnings results on Wednesday, November 4th. The company reported $0.81 EPS for the quarter, beating the consensus estimate of $0.64 by $0.17. The firm had revenue of $1.20 billion for the quarter, compared to analyst estimates of $1.15 billion. Datadog had a net margin of 6.12% and a return on equity of 7.28%. The business’s quarterly revenue was up 35.2% compared to the same quarter last year. During the same period last year, the firm earned $0.55 EPS. Analysts predict that Datadog will post 0.70 EPS for the current fiscal year.

Trending Headlines about Datadog

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Third-quarter revenue rose 35.2% year over year to $1.20 billion, beating expectations, while adjusted EPS of $0.81 also topped estimates. Broader AI adoption and product expansion supported growth. Article: Datadog Q3 Earnings & Revenues Surpass Estimates
• Positive Sentiment: Datadog reported about 4,860 customers with at least $100,000 in annual recurring revenue, up from about 4,060 a year earlier. Infrastructure-monitoring ARR also exceeded $2 billion. Article: Datadog: 3 Key Takeaways for Long-Term Investors
• Neutral Sentiment: Several analysts lowered their price targets after the report, while keeping bullish ratings such as Buy or Overweight. The target cuts may reflect increased caution, though the retained ratings indicate continued optimism about longer-term prospects. Citigroup analyst recommendations
• Negative Sentiment: Investors are concerned that fourth-quarter revenue growth will slow; management’s outlook puts revenue near the third-quarter level, with reported coverage highlighting an expected growth deceleration. The outlook also assumes the company’s largest customer meets a minimum commitment, leaving uncertainty around that customer’s usage. Article: DDOG Q3 Earnings Call Highlights AI Growth and Customer Renewals
• Negative Sentiment: Reports also point to discounts for some AI customers and lower-priced renewals as factors that could temper growth. With DDOG valued at a premium, investors may be less willing to overlook signs of slowing momentum. Article: Datadog: AI Story Priced For Perfection

Insider Buying and Selling at Datadog

In related news, CFO David Obstler sold 40,000 shares of the stock in a transaction on Monday, September 14th. The stock was 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 directly owned 378,067 shares in the company, valued at $85,998,900.49. This represents a 9.57% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, 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 dated Monday, August 10th. The shares were sold at an average price of $253.36, for a total value of $13,659,144.32. Following the completion of the sale, the chief technology officer owned 509,805 shares in the company, valued at $129,164,194.80. 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. Insiders have sold a total of 745,293 shares of company stock worth $175,536,548 in the last three months. 6.48% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Datadog

A number of hedge funds have recently bought and sold shares of the company. CENTRAL TRUST Co lifted its holdings in shares of Datadog by 237.3% in the third quarter. CENTRAL TRUST Co now owns 877 shares of the company’s stock valued at $240,000 after purchasing an additional 617 shares in the last quarter. Endeavor Private Wealth Inc. purchased a new stake in Datadog in the 3rd quarter valued at $206,000. Maryland State Retirement & Pension System lifted its stake in Datadog by 12.3% during the 3rd quarter. Maryland State Retirement & Pension System now owns 19,823 shares of the company’s stock valued at $5,429,000 after acquiring an additional 2,173 shares in the last quarter. Ritholtz Wealth Management lifted its stake in Datadog by 18.9% during the 3rd quarter. Ritholtz Wealth Management now owns 2,668 shares of the company’s stock valued at $730,000 after acquiring an additional 424 shares in the last quarter. Finally, Jacobi Capital Management LLC purchased a new position in Datadog during the 3rd quarter worth $164,000. Institutional investors own 78.29% of the company’s stock.

About Datadog

Datadog, Inc is a technology company that provides a cloud-based monitoring and security platform for applications, infrastructure and other technology environments. Its platform helps organizations collect, analyze and visualize data from servers, databases, containers, cloud services, applications and user interactions in a unified environment.

Datadog’s products include infrastructure monitoring, application performance monitoring, log management, real user monitoring, synthetic monitoring, network performance monitoring, cloud security, software delivery tools and incident-management capabilities.