Datadog (NASDAQ:DDOG) Given New $275.00 Price Target at TD Cowen

Datadog (NASDAQ:DDOG) had its price target cut by equities researchers at TD Cowen from $300.00 to $275.00 in a report released on Thursday, Benzinga reports. The brokerage currently has a “buy” rating on the stock. TD Cowen‘s price objective points to a potential upside of 57.75% from the company’s previous close.

A number of other equities analysts have also recently weighed in on the company. Raymond James Financial reiterated an “outperform” rating and set a $280.00 price target on shares of Datadog in a report on Thursday, August 6th. Robert W. Baird set a $300.00 price objective on shares of Datadog in a report on Friday, August 7th. Evercore reaffirmed an “outperform” rating and issued a $300.00 target price on shares of Datadog in a research report on Monday. Citizens Jmp increased their target price on shares of Datadog from $225.00 to $311.00 and gave the stock a “market outperform” rating in a research note on Monday, July 20th. Finally, Weiss Ratings upgraded shares of Datadog from a “hold (c)” rating to a “hold (c+)” rating in a research report on Thursday, October 8th. Two equities research analysts have rated the stock with a Strong Buy rating, forty-one have given a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $275.78.

Datadog Trading Down 7.6%

NASDAQ:DDOG traded down $14.39 on Thursday, hitting $174.33. The stock had a trading volume of 7,986,044 shares, compared to its average volume of 5,116,217. The company has a fifty day moving average price of $250.09 and a two-hundred day moving average price of $199.43. Datadog has a 1-year low of $98.01 and a 1-year high of $300.68. 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 has a market cap of $62.60 billion, a price-to-earnings ratio of 358.25, a PEG ratio of 21.50 and a beta of 1.50.

Datadog (NASDAQ:DDOG) last issued its quarterly earnings data on Wednesday, November 4th. The company reported $0.81 earnings per share for the quarter, topping the consensus estimate of $0.64 by $0.17. The company had revenue of $1.20 billion during the quarter, compared to analyst estimates of $1.15 billion. Datadog had a return on equity of 5.67% and a net margin of 4.48%. The firm’s revenue for the quarter was up 35.2% compared to the same quarter last year. During the same period in the prior year, the business posted $0.55 earnings per share. Equities research analysts expect that Datadog will post 0.70 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CTO Alexis Le-Quoc sold 53,912 shares of the stock in a transaction on Monday, August 10th. The stock was sold at an average price of $253.36, for a total value of $13,659,144.32. Following the transaction, the chief technology officer owned 509,805 shares of the company’s stock, valued at $129,164,194.80. This represents a 9.56% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Olivier Pomel sold 89,497 shares of the stock in a transaction dated Tuesday, September 8th. The shares were sold at an average price of $207.86, for a total value of $18,602,846.42. Following the completion of the transaction, the chief executive officer owned 586,416 shares in the company, valued at approximately $121,892,429.76. The trade was a 13.24% 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 ninety days, insiders sold 745,293 shares of company stock valued at $175,536,548. Corporate insiders own 6.48% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. Cornerstone Financial Management LLC increased its position in shares of Datadog by 54.9% during the second quarter. Cornerstone Financial Management LLC now owns 127 shares of the company’s stock worth $33,000 after purchasing an additional 45 shares in the last quarter. QTR Family Wealth LLC grew its holdings in Datadog by 3.2% during the third quarter. QTR Family Wealth LLC now owns 1,499 shares of the company’s stock worth $411,000 after acquiring an additional 47 shares during the period. United Asset Strategies Inc. increased its holdings in shares of Datadog by 1.1% in the 3rd quarter. United Asset Strategies Inc. now owns 5,997 shares of the company’s stock valued at $1,642,000 after purchasing an additional 68 shares in the last quarter. State of Wyoming lifted its position in shares of Datadog by 4.1% during the 1st quarter. State of Wyoming now owns 1,946 shares of the company’s stock valued at $230,000 after acquiring an additional 76 shares during the period. Finally, Roberts Wealth Advisors LLC boosted its position in shares of Datadog by 0.6% in the 3rd quarter. Roberts Wealth Advisors LLC now owns 15,720 shares of the company’s stock worth $4,305,000 after buying an additional 91 shares in the last quarter. 78.29% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Datadog

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Q3 revenue rose 35.2% year over year to $1.20 billion, ahead of expectations, while adjusted EPS of $0.81 topped the $0.64 consensus. Growth in AI workloads and product adoption, along with a larger base of high-spending customers, supports the longer-term growth case. Datadog Q3 Earnings & Revenues Surpass Estimates
• Neutral Sentiment: Several analysts reduced their price targets after the results but maintained bullish ratings, including Rosenblatt ($285), DA Davidson ($275), Barclays ($262), Wells Fargo ($300), Wedbush ($240) and Cantor Fitzgerald ($260). The cuts suggest lower near-term expectations, although the firms still see potential upside. Read More., Read More., Read More., Read More., Read More. and Read More.
• Negative Sentiment: Investors are concerned that Q4 revenue guidance of about $1.20 billion implies a marked growth slowdown from Q3. Lower usage by a major AI customer and discounted AI-related renewals add uncertainty about how quickly that growth can recover. Datadog Says Lower Usage From Major AI Customer Is Weighing on Growth
• Negative Sentiment: Datadog’s premium valuation leaves the shares vulnerable when growth expectations soften, helping explain why the market has reacted negatively despite the earnings beat and higher full-year outlook. Datadog: AI Story Priced For Perfection

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.