Datadog (NASDAQ:DDOG) Shares Up 7.7% Following Analyst Upgrade

Shares of Datadog, Inc. (NASDAQ:DDOG) were up 7.7% during mid-day trading on Wednesday after Morgan Stanley raised their price target on the stock from $225.00 to $300.00. Morgan Stanley currently has an overweight rating on the stock. Datadog traded as high as $269.82 and last traded at $270.2280. Approximately 2,593,413 shares traded hands during mid-day trading, a decline of 54% from the average daily volume of 5,582,832 shares. The stock had previously closed at $250.88.

Other equities analysts have also issued research reports about the stock. KeyCorp increased their price target on shares of Datadog from $225.00 to $320.00 and gave the company an “overweight” rating in a research report on Thursday, July 16th. UBS Group boosted their target price on shares of Datadog from $220.00 to $315.00 and gave the company a “buy” rating in a research note on Thursday, July 16th. Royal Bank Of Canada reissued an “outperform” rating and set a $280.00 target price on shares of Datadog in a research report on Thursday, July 16th. DA Davidson set a $250.00 price target on shares of Datadog in a research note on Friday, May 22nd. Finally, Rosenblatt Securities lifted their price target on shares of Datadog from $178.00 to $220.00 and gave the stock a “buy” rating in a report on Friday, May 8th. Two research analysts have rated the stock with a Strong Buy rating, thirty-nine have given a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $264.84.

Insiders Place Their Bets

In related news, Director Michael James Callahan sold 12,500 shares of the business’s stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $267.47, for a total transaction of $3,343,375.00. Following the completion of the transaction, the director directly owned 14,996 shares in the company, valued at $4,010,980.12. The trade was a 45.46% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Olivier Pomel sold 47,054 shares of the company’s stock in a transaction dated Thursday, July 23rd. The stock was sold at an average price of $244.79, for a total value of $11,518,348.66. Following the completion of the transaction, the chief executive officer owned 612,747 shares in the company, valued at $149,994,338.13. This represents a 7.13% decrease in their ownership of the stock. 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. Insiders sold a total of 1,486,587 shares of company stock worth $342,962,652 over the last three months. Corporate insiders own 6.48% of the company’s stock.

Datadog News Roundup

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Datadog’s remaining performance obligations increased 51% to $3.48 billion, reflecting a larger contribution from multi-year contracts. The higher recurring commitment base could make revenue growth more predictable and supports confidence in the company’s 2026 outlook. Datadog multi-year contracts article
• Positive Sentiment: Analyst sentiment remains constructive. BTIG raised its price target to $289 from $255 while maintaining a Buy rating; other firms, including TD Cowen and Oppenheimer, have recently set targets near $300. Analysts cite stronger growth momentum, durable AI-related demand and the potential for another earnings beat. BTIG Datadog price target article
• Positive Sentiment: The company’s latest quarter showed revenue growth of approximately 32% year over year to just over $1 billion, with earnings exceeding consensus estimates. Continued expansion of Datadog’s AI and observability products, including its Adaptive ML acquisition, is reinforcing the long-term platform growth story. Datadog analyst optimism and earnings catalyst article
• Neutral Sentiment: Institutional positioning is mixed: 555 investors added DDOG shares in the latest reported quarter, while 498 reduced positions. BlackRock and Citadel were notable buyers, but FMR, T. Rowe Price and Massachusetts Financial Services made sizable reductions.
• Negative Sentiment: Insiders have reported extensive selling, with no purchases and 379 sales over the past six months. Recent CEO, CTO and director transactions were executed under pre-arranged Rule 10b5-1 plans, reducing their value as discretionary bearish signals, but the activity may still weigh on sentiment. The stock’s elevated valuation also leaves limited room for an earnings or outlook disappointment. Datadog insider selling article

Hedge Funds Weigh In On Datadog

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Regent Peak Wealth Advisors LLC bought a new position in shares of Datadog in the 2nd quarter worth $206,000. Tema ETFs LLC increased its stake in Datadog by 8.1% in the second quarter. Tema ETFs LLC now owns 5,792 shares of the company’s stock valued at $1,508,000 after acquiring an additional 435 shares during the last quarter. Handelsbanken Fonder AB raised its position in Datadog by 81.6% during the second quarter. Handelsbanken Fonder AB now owns 170,519 shares of the company’s stock valued at $44,396,000 after purchasing an additional 76,607 shares in the last quarter. Bay Colony Advisory Group Inc d b a Bay Colony Advisors bought a new stake in Datadog during the second quarter worth about $260,000. Finally, Sax Wealth Advisors LLC boosted its holdings in shares of Datadog by 4.2% in the 2nd quarter. Sax Wealth Advisors LLC now owns 5,257 shares of the company’s stock worth $1,369,000 after purchasing an additional 212 shares in the last quarter. Hedge funds and other institutional investors own 78.29% of the company’s stock.

Datadog Price Performance

The stock has a market capitalization of $96.33 billion, a P/E ratio of 710.62, a price-to-earnings-growth ratio of 25.61 and a beta of 1.54. The company has a debt-to-equity ratio of 0.25, a quick ratio of 3.40 and a current ratio of 3.40. The firm has a 50-day moving average price of $242.98 and a 200 day moving average price of $170.38.

Datadog (NASDAQ:DDOG) last issued its earnings results on Thursday, May 7th. The company reported $0.60 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.51 by $0.09. Datadog had a return on equity of 4.83% and a net margin of 3.69%.The business had revenue of $1.01 billion during the quarter, compared to analyst estimates of $960.12 million. During the same quarter in the prior year, the firm earned $0.46 earnings per share. Datadog’s revenue for the quarter was up 32.1% on a year-over-year basis. Datadog has set its FY 2026 guidance at 2.360-2.440 EPS and its Q2 2026 guidance at 0.570-0.590 EPS. On average, analysts expect that Datadog, Inc. will post 0.64 EPS for the current year.

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.