Datadog (NASDAQ:DDOG) Stock Gets Price Target Reduction from Citigroup

Datadog (NASDAQ:DDOG) had its target price cut by equities research analysts at Citigroup from $305.00 to $290.00 in a research report issued to clients and investors on Thursday, Benzinga reports. The firm currently has a “buy” rating on the stock. Citigroup‘s target price suggests a potential upside of 66.09% from the stock’s previous close.

A number of other analysts have also recently issued reports on DDOG. UBS Group lifted their target price on shares of Datadog from $280.00 to $320.00 and gave the company a “buy” rating in a research note on Tuesday, October 27th. Mizuho increased their price target on shares of Datadog from $300.00 to $330.00 and gave the stock an “outperform” rating in a research note on Thursday, October 15th. Canadian Imperial Bank of Commerce increased their price target on shares of Datadog from $280.00 to $315.00 and gave the stock an “outperform” rating in a research note on Friday, October 9th. Oppenheimer raised their price target on shares of Datadog from $300.00 to $330.00 and gave the company an “outperform” rating in a report on Monday, October 26th. Finally, Rosenblatt Securities reduced their price objective on shares of Datadog from $305.00 to $285.00 and set a “buy” rating for the company in a research note on Thursday. Two research analysts have rated the stock with a Strong Buy rating, forty-one have assigned a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $275.46.

Datadog Stock Down 7.5%

Shares of DDOG traded down $14.12 during midday trading on Thursday, reaching $174.60. 9,964,634 shares of the stock were exchanged, compared to its average volume of 5,120,656. Datadog has a 12-month low of $98.01 and a 12-month high of $300.68. The firm has a 50 day simple moving average of $250.09 and a 200-day simple moving average of $199.43. 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 company has a market cap of $62.70 billion, a price-to-earnings ratio of 356.33, a P/E/G ratio of 21.50 and a beta of 1.50.

Datadog (NASDAQ:DDOG) last announced its quarterly earnings results on Wednesday, November 4th. The company reported $0.81 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.64 by $0.17. Datadog had a return on equity of 5.67% and a net margin of 4.48%. The business had revenue of $1.20 billion during the quarter, compared to analyst estimates of $1.15 billion. During the same period in the previous year, the company earned $0.55 EPS. The firm’s revenue was up 35.2% on a year-over-year basis. Research analysts forecast that Datadog will post 0.70 EPS for the current year.

Insiders Place Their Bets

In other Datadog news, CTO Alexis Le-Quoc sold 53,912 shares of Datadog stock in a transaction that occurred 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 directly owned 509,805 shares of the company’s stock, valued at $129,164,194.80. The trade was a 9.56% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Olivier Pomel sold 89,497 shares of the company’s stock in a transaction on 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 of the company’s stock, valued at $121,892,429.76. The trade was a 13.24% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 745,293 shares of company stock worth $175,536,548 over the last quarter. 6.48% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Datadog

A number of institutional investors have recently bought and sold shares of the business. First Trust Advisors LP raised its stake in shares of Datadog by 81.5% in the 1st quarter. First Trust Advisors LP now owns 3,685,562 shares of the company’s stock valued at $435,081,000 after buying an additional 1,654,429 shares in the last quarter. Assenagon Asset Management S.A. boosted its position in shares of Datadog by 197.9% during the 3rd quarter. Assenagon Asset Management S.A. now owns 2,443,008 shares of the company’s stock valued at $669,018,000 after acquiring an additional 1,622,904 shares in the last quarter. Janus Henderson Group PLC boosted its position in shares of Datadog by 22.8% during the 1st quarter. Janus Henderson Group PLC now owns 7,749,569 shares of the company’s stock valued at $905,570,000 after acquiring an additional 1,439,082 shares in the last quarter. Arrowstreet Capital Limited Partnership boosted its position in shares of Datadog by 162.2% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 1,571,018 shares of the company’s stock valued at $185,459,000 after acquiring an additional 971,910 shares in the last quarter. Finally, Bank of New York Mellon Corp increased its stake 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 acquiring an additional 615,090 shares during the period. Institutional investors and hedge funds own 78.29% of the company’s stock.

Trending Headlines about 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

Datadog Company Profile

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.