Investors Buy High Volume of Call Options on Datadog (NASDAQ:DDOG)

Datadog, Inc. (NASDAQ:DDOG) was the recipient of unusually large options trading on Thursday. Investors bought 56,235 call options on the company. This represents an increase of approximately 117% compared to the typical volume of 25,941 call options.

Analyst Ratings Changes

Several brokerages have issued reports on DDOG. Royal Bank Of Canada dropped their target price on Datadog from $175.00 to $150.00 and set an “outperform” rating for the company in a report on Monday, February 9th. Citigroup reissued a “buy” rating on shares of Datadog in a research report on Thursday, April 23rd. Sanford C. Bernstein decreased their price objective on Datadog from $180.00 to $167.00 and set an “outperform” rating for the company in a research note on Wednesday, April 22nd. Daiwa Securities Group began coverage on Datadog in a research note on Tuesday, January 27th. They set a “buy” rating and a $190.00 target price for the company. Finally, Scotiabank reduced their price objective on Datadog from $180.00 to $160.00 and set a “sector outperform” rating for the company in a research note on Wednesday, February 11th. One analyst has rated the stock with a Strong Buy rating, thirty-eight have assigned a Buy rating, three have given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $177.28.

Datadog Trading Up 29.5%

Shares of DDOG stock traded up $42.46 on Thursday, reaching $186.17. 13,148,677 shares of the stock were exchanged, compared to its average volume of 5,694,377. The firm has a 50 day moving average of $122.72 and a two-hundred day moving average of $136.73. The stock has a market cap of $65.64 billion, a P/E ratio of 603.11, a price-to-earnings-growth ratio of 52.75 and a beta of 1.30. The company has a quick ratio of 3.38, a current ratio of 3.38 and a debt-to-equity ratio of 0.26. Datadog has a 1-year low of $98.01 and a 1-year high of $201.69.

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 analysts’ consensus estimates of $0.50 by $0.10. Datadog had a return on equity of 4.14% and a net margin of 3.14%.The business had revenue of $1.01 billion during the quarter, compared to analysts’ expectations of $960.12 million. During the same quarter in the previous year, the business earned $0.46 EPS. The company’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, research analysts anticipate that Datadog will post 0.32 EPS for the current year.

Key Stories Impacting Datadog

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Q1 beat: Datadog reported $0.60 EPS vs. ~$0.50 consensus and revenue of ~$1.01B (+32% YoY), with strong operating cash flow ($335M) and free cash flow ($289M) — the core fundamental driver behind the rally. Read More.
• Positive Sentiment: Guidance raised: management set Q2 EPS $0.57–$0.59 (vs. ~ $0.41 consensus) and FY EPS $2.36–$2.44 (vs. ~ $1.80), and Q2/FY revenue targets above Street expectations — the primary bullish catalyst for the stock today. Read More.
• Positive Sentiment: Product and sales momentum: expansion in large customers (~4,550 $100k+ ARR customers) and new launches (MCP Server, Bits AI Security Agent, GPU Monitoring, Experiments) support durable growth expectations. Read More.
• Positive Sentiment: FedRAMP High certification for government offering removes a compliance barrier for federal deals, opening a new addressable market and providing a structural growth catalyst. Read More.
• Positive Sentiment: Sell‑side support: Jefferies raised its price target to $170 and kept a Buy rating, adding incremental analyst backing for upside. Read More.
• Neutral Sentiment: Analyst/newsflow sensitivity: pre‑ and post‑earnings notes are amplifying short‑term flows; expect continued headline‑driven moves around bookings, large‑customer metrics and AI commentary. Read More.
• Neutral Sentiment: Elevated options activity and implied volatility around the print mean some of the move is driven by trading flows rather than long‑term buyers. Read More.
• Negative Sentiment: Insider selling: CTO Alexis Le‑Quoc sold ~43,106 shares in a pre‑arranged 10b5‑1 plan — disclosed sales can be perceived negatively even if planned. Read More.
• Negative Sentiment: Valuation risk: DDOG still trades at a premium multiple vs. peers; high P/E can amplify pullbacks as investors lock gains after recent strong performance. Read More.

Insider Buying and Selling

In related news, CTO Alexis Le-Quoc sold 53,912 shares of Datadog stock in a transaction dated Tuesday, March 10th. The shares were sold at an average price of $125.49, for a total transaction of $6,765,416.88. Following the completion of the transaction, the chief technology officer directly owned 437,257 shares of the company’s stock, valued at approximately $54,871,380.93. The trade was a 10.98% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Olivier Pomel sold 68,922 shares of the business’s stock in a transaction dated Monday, March 2nd. The shares were sold at an average price of $110.54, for a total transaction of $7,618,637.88. Following the completion of the sale, the chief executive officer directly owned 704,821 shares of the company’s stock, valued at approximately $77,910,913.34. This trade represents a 8.91% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 637,745 shares of company stock valued at $78,462,247. Company insiders own 6.67% of the company’s stock.

Hedge Funds Weigh In On Datadog

Large investors have recently modified their holdings of the stock. PKO Investment Management Joint Stock Co acquired a new position in shares of Datadog in the third quarter worth $1,709,000. Hartford Investment Management Co. acquired a new position in Datadog during the third quarter worth $2,689,000. IQ EQ FUND MANAGEMENT IRELAND Ltd increased its position in Datadog by 134.5% during the third quarter. IQ EQ FUND MANAGEMENT IRELAND Ltd now owns 31,142 shares of the company’s stock worth $4,435,000 after buying an additional 17,860 shares during the last quarter. Vanguard Group Inc. increased its position in Datadog by 30.3% during the third quarter. Vanguard Group Inc. now owns 41,902,227 shares of the company’s stock worth $5,966,877,000 after buying an additional 9,748,738 shares during the last quarter. Finally, Sumitomo Mitsui DS Asset Management Company Ltd grew its holdings in Datadog by 37.9% during the third quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 109,233 shares of the company’s stock valued at $15,555,000 after purchasing an additional 30,008 shares during the last quarter. Institutional investors own 78.29% of the company’s stock.

About Datadog

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.