Datadog (NASDAQ:DDOG) Price Target Raised to $225.00

Datadog (NASDAQ:DDOG) had its target price upped by Morgan Stanley from $180.00 to $225.00 in a research report report published on Friday morning, Marketbeat.com reports. They currently have an overweight rating on the stock.

A number of other research analysts have also recently weighed in on the stock. Wedbush dropped their target price on shares of Datadog from $215.00 to $190.00 and set an “outperform” rating on the stock in a research note on Wednesday, February 11th. Bank of America dropped their price target on shares of Datadog from $215.00 to $170.00 and set a “buy” rating on the stock in a research note on Wednesday, April 22nd. Guggenheim upped their price target on shares of Datadog from $175.00 to $225.00 and gave the company a “buy” rating in a research note on Thursday. Evercore restated an “outperform” rating and set a $225.00 price target on shares of Datadog in a research note on Thursday. Finally, Rosenblatt Securities upped their price target on shares of Datadog from $178.00 to $220.00 and gave the company a “buy” rating in a research note on Friday. One research analyst has rated the stock with a Strong Buy rating, forty have issued a Buy rating, one has given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $211.76.

Datadog Price Performance

DDOG opened at $200.16 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 stock has a market cap of $70.57 billion, a price-to-earnings ratio of 526.75, a PEG ratio of 72.45 and a beta of 1.30. Datadog has a twelve month low of $98.01 and a twelve month high of $201.69. The company’s 50-day moving average price is $124.41 and its two-hundred day moving average price is $136.98.

Datadog (NASDAQ:DDOG) last released its earnings results on Thursday, May 7th. The company reported $0.60 earnings per share for the quarter, beating analysts’ consensus estimates of $0.51 by $0.09. The firm had revenue of $1.01 billion for the quarter, compared to analysts’ expectations of $960.12 million. Datadog had a net margin of 3.69% and a return on equity of 4.83%. The company’s quarterly revenue was up 32.1% on a year-over-year basis. During the same period in the previous year, the company earned $0.46 earnings per share. Datadog has set its FY 2026 guidance at 2.360-2.440 EPS and its Q2 2026 guidance at 0.570-0.590 EPS. As a group, equities analysts expect that Datadog will post 0.32 earnings per share for the current year.

Insiders Place Their Bets

In other Datadog news, Director Julie Richardson sold 502 shares of the stock in a transaction that occurred on Tuesday, May 5th. The shares were sold at an average price of $150.00, for a total value of $75,300.00. Following the sale, the director directly owned 4,168 shares in the company, valued at $625,200. This represents a 10.75% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Alexis Le-Quoc sold 43,106 shares of the stock in a transaction that occurred on Monday, May 4th. The stock was sold at an average price of $144.93, for a total transaction of $6,247,352.58. Following the completion of the sale, the chief technology officer owned 531,311 shares in the company, valued at $77,002,903.23. This represents a 7.50% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 654,018 shares of company stock worth $80,903,197. Company insiders own 6.48% of the company’s stock.

Institutional Trading of Datadog

Several institutional investors and hedge funds have recently bought and sold shares of DDOG. Rothschild Investment LLC lifted its stake in Datadog by 126.6% in the 3rd quarter. Rothschild Investment LLC now owns 179 shares of the company’s stock worth $25,000 after purchasing an additional 100 shares in the last quarter. Physician Wealth Advisors Inc. increased its holdings in shares of Datadog by 315.2% in the 3rd quarter. Physician Wealth Advisors Inc. now owns 191 shares of the company’s stock worth $27,000 after buying an additional 145 shares during the last quarter. Westside Investment Management Inc. increased its holdings in shares of Datadog by 74.3% in the 3rd quarter. Westside Investment Management Inc. now owns 176 shares of the company’s stock worth $27,000 after buying an additional 75 shares during the last quarter. JPL Wealth Management LLC bought a new position in shares of Datadog in the 3rd quarter worth $27,000. Finally, Hazlett Burt & Watson Inc. bought a new position in shares of Datadog in the 3rd quarter worth $28,000. 78.29% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting Datadog

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Datadog delivered a beat-and-raise quarter, with Q1 revenue of about $1.01 billion and EPS of $0.60 both ahead of estimates, while management lifted FY 2026 and Q2 guidance well above consensus. Datadog Q1 2026 Financial Results
• Positive Sentiment: Several major Wall Street firms raised price targets after the results, including Citigroup, RBC, Piper Sandler, Wedbush, TD Cowen, Morgan Stanley, Mizuho, and others, reinforcing the bullish case and supporting the stock’s rally. Analyst price target hikes
• Positive Sentiment: Management highlighted strong demand across AI-native and non-AI customers, plus growth in larger customers and new product launches, which suggests the growth story is broadening beyond one-time earnings strength. RBC commentary on Datadog
• Neutral Sentiment: Heavy call-option buying and elevated trading volume indicate strong short-term momentum, but some of the move may be trader-driven and could increase volatility. Options activity report
• Negative Sentiment: Several insiders, including the CTO, general counsel, and a director, sold shares in pre-arranged 10b5-1 transactions, which may temper enthusiasm for some investors even though the sales were scheduled in advance. SEC filing for insider sale

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.