Datadog (NASDAQ:DDOG) Stock Price Down 7.7% – Here’s Why

Datadog, Inc. (NASDAQ:DDOG) shares dropped 7.7% on Monday . The stock traded as low as $107.24 and last traded at $106.7090. Approximately 1,673,189 shares traded hands during trading, a decline of 74% from the average daily volume of 6,374,035 shares. The stock had previously closed at $115.66.

Wall Street Analyst Weigh In

Several equities analysts have recently commented on DDOG shares. Barclays lowered their target price on Datadog from $195.00 to $165.00 and set an “overweight” rating for the company in a report on Wednesday, February 11th. Mizuho lowered their price objective on Datadog from $200.00 to $170.00 and set an “outperform” rating for the company in a research note on Wednesday, January 21st. Guggenheim set a $105.00 target price on Datadog in a research note on Thursday, November 6th. Bank of America upped their price target on shares of Datadog from $180.00 to $215.00 and gave the stock a “buy” rating in a research report on Friday, November 7th. Finally, Wall Street Zen cut shares of Datadog from a “buy” rating to a “hold” rating in a report on Saturday, January 17th. Thirty-six analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $179.62.

Datadog Trading Down 11.5%

The business’s 50 day moving average price is $129.27 and its two-hundred day moving average price is $143.00. The company has a debt-to-equity ratio of 0.26, a quick ratio of 3.38 and a current ratio of 3.38. The company has a market capitalization of $35.90 billion, a price-to-earnings ratio of 330.28, a price-to-earnings-growth ratio of 31.79 and a beta of 1.27.

Datadog (NASDAQ:DDOG) last issued its quarterly earnings results on Tuesday, February 10th. The company reported $0.59 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.55 by $0.04. The firm had revenue of $953.19 million during the quarter, compared to analyst estimates of $916.53 million. Datadog had a return on equity of 4.14% and a net margin of 3.14%.The firm’s quarterly revenue was up 29.2% on a year-over-year basis. During the same period last year, the company posted $0.49 EPS. Datadog has set its FY 2026 guidance at 2.080-2.160 EPS and its Q1 2026 guidance at 0.490-0.510 EPS. Equities analysts forecast that Datadog, Inc. will post 0.34 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, CTO Alexis Le-Quoc sold 43,106 shares of the firm’s stock in a transaction dated Wednesday, February 11th. The shares were sold at an average price of $126.79, for a total transaction of $5,465,409.74. Following the completion of the transaction, the chief technology officer owned 490,798 shares in the company, valued at approximately $62,228,278.42. This trade represents a 8.07% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, Director Shardul Shah sold 7,916 shares of Datadog stock in a transaction that occurred on Tuesday, January 13th. The stock was sold at an average price of $124.89, for a total transaction of $988,629.24. Following the completion of the transaction, the director directly owned 340,701 shares in the company, valued at $42,550,147.89. This represents a 2.27% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 337,291 shares of company stock worth $48,909,907 in the last ninety days. Insiders own 8.70% of the company’s stock.

Institutional Investors Weigh In On Datadog

Large investors have recently modified their holdings of the stock. PKO Investment Management Joint Stock Co acquired a new position in Datadog during the 3rd quarter valued at about $1,709,000. Hartford Investment Management Co. acquired a new position in Datadog in the third quarter valued at approximately $2,689,000. Munro Partners bought a new position in Datadog in the third quarter valued at approximately $7,120,000. IQ EQ FUND MANAGEMENT IRELAND Ltd boosted its stake in Datadog by 134.5% in the third quarter. IQ EQ FUND MANAGEMENT IRELAND Ltd now owns 31,142 shares of the company’s stock valued at $4,435,000 after acquiring an additional 17,860 shares during the last quarter. Finally, Sumitomo Mitsui DS Asset Management Company Ltd grew its holdings in Datadog by 37.9% during the 3rd quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 109,233 shares of the company’s stock worth $15,555,000 after acquiring an additional 30,008 shares during the period. 78.29% of the stock is owned by institutional investors.

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.