Datadog (NASDAQ:DDOG) Upgraded to “Buy” at Wall Street Zen

Wall Street Zen upgraded shares of Datadog (NASDAQ:DDOG) from a hold rating to a buy rating in a research note released on Saturday morning.

Several other equities analysts also recently commented on the company. TD Cowen boosted their price objective on Datadog from $190.00 to $235.00 and gave the company a “buy” rating in a research report on Thursday, May 7th. Rosenblatt Securities boosted their price target on Datadog from $178.00 to $220.00 and gave the stock a “buy” rating in a report on Friday, May 8th. BMO Capital Markets upped their price target on Datadog from $165.00 to $220.00 and gave the stock an “outperform” rating in a research note on Friday, May 8th. Guggenheim increased their price objective on shares of Datadog from $175.00 to $225.00 and gave the company a “buy” rating in a report on Thursday, May 7th. Finally, DA Davidson reiterated a “buy” rating and set a $225.00 price objective on shares of Datadog in a research report on Monday, May 4th. One analyst has rated the stock with a Strong Buy rating, forty have given a Buy rating, one has assigned a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $213.38.

Datadog Stock Performance

DDOG opened at $207.98 on Friday. The company has a 50 day simple moving average of $135.18 and a two-hundred day simple moving average of $139.09. The company has a debt-to-equity ratio of 0.25, a current ratio of 3.40 and a quick ratio of 3.40. The firm has a market cap of $74.03 billion, a P/E ratio of 547.33, a PEG ratio of 71.95 and a beta of 1.30. Datadog has a 1-year low of $98.01 and a 1-year high of $211.28.

Datadog (NASDAQ:DDOG) last announced its quarterly earnings data on Thursday, May 7th. The company reported $0.60 EPS for the quarter, beating the consensus estimate of $0.51 by $0.09. The firm had revenue of $1.01 billion for the quarter, compared to the consensus estimate of $960.12 million. Datadog had a net margin of 3.69% and a return on equity of 4.83%. The company’s revenue was up 32.1% on a year-over-year basis. During the same period last year, the firm earned $0.46 EPS. Datadog has set its FY 2026 guidance at 2.360-2.440 EPS and its Q2 2026 guidance at 0.570-0.590 EPS. Equities analysts forecast that Datadog will post 0.35 earnings per share for the current fiscal year.

Insider Activity at Datadog

In other Datadog news, Director Julie Richardson sold 1,930 shares of the company’s stock in a transaction that occurred on Friday, May 8th. The stock was sold at an average price of $185.82, for a total transaction of $358,632.60. Following the sale, the director directly owned 2,106 shares in the company, valued at $391,336.92. This represents a 47.82% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Yanbing Li sold 19,834 shares of the firm’s stock in a transaction that occurred on Friday, May 8th. The shares were sold at an average price of $197.35, for a total value of $3,914,239.90. Following the completion of the sale, the insider directly owned 285,283 shares of the company’s stock, valued at $56,300,600.05. The trade was a 6.50% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 842,739 shares of company stock valued at $121,023,123 over the last ninety days. 6.48% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. Brighton Jones LLC bought a new stake in shares of Datadog in the 4th quarter worth about $209,000. Bison Wealth LLC bought a new position in Datadog during the 4th quarter valued at about $228,000. Empowered Funds LLC grew its holdings in Datadog by 7.0% during the 1st quarter. Empowered Funds LLC now owns 10,313 shares of the company’s stock valued at $1,023,000 after purchasing an additional 672 shares during the last quarter. Geneos Wealth Management Inc. raised its position in Datadog by 17.6% in the 1st quarter. Geneos Wealth Management Inc. now owns 769 shares of the company’s stock worth $76,000 after purchasing an additional 115 shares during the period. Finally, Sivia Capital Partners LLC bought a new stake in Datadog in the second quarter worth about $509,000. 78.29% of the stock is owned by hedge funds and other 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.