Datadog (NASDAQ:DDOG) Stock Jumps 3.4% – Still a Buy?

Datadog, Inc. (NASDAQ:DDOG)’s share price was up 3.4% on Wednesday. The stock traded as high as $255.00 and last traded at $256.0030. Approximately 669,823 shares traded hands during trading, a decline of 87% from the average session volume of 5,349,661 shares. The stock had previously closed at $247.48.

Wall Street Analysts Forecast Growth

A number of research analysts recently commented on DDOG shares. BMO Capital Markets set a $300.00 price objective on Datadog in a research note on Friday, August 7th. Canadian Imperial Bank of Commerce increased their target price on Datadog from $250.00 to $280.00 and gave the company an “outperform” rating in a research note on Wednesday, June 10th. UBS Group decreased their price target on shares of Datadog from $315.00 to $280.00 and set a “buy” rating for the company in a research report on Friday, August 7th. Wedbush began coverage on shares of Datadog in a research note on Friday, September 11th. They issued an “outperform” rating and a $275.00 price target for the company. Finally, Barclays increased their price objective on shares of Datadog from $260.00 to $290.00 and gave the company an “overweight” rating in a research note on Tuesday, July 21st. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-eight have issued a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Datadog has a consensus rating of “Moderate Buy” and an average price target of $276.66.

Datadog Stock Performance

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 capitalization of $92.25 billion, a price-to-earnings ratio of 524.34, a P/E/G ratio of 24.15 and a beta of 1.49. The stock has a 50 day simple moving average of $241.60 and a 200 day simple moving average of $205.26.

Datadog (NASDAQ:DDOG) last released its quarterly earnings data on Thursday, August 6th. The company reported $0.65 earnings per share for the quarter, topping analysts’ consensus estimates of $0.58 by $0.07. The business had revenue of $1.12 billion for the quarter, compared to analysts’ expectations of $1.08 billion. Datadog had a net margin of 4.48% and a return on equity of 5.67%. The company’s revenue for the quarter was up 35.6% compared to the same quarter last year. During the same quarter last year, the company earned $0.46 EPS. Datadog has set its Q3 2026 guidance at 0.630-0.650 EPS and its FY 2026 guidance at 2.500-2.540 EPS. As a group, analysts anticipate that Datadog, Inc. will post 0.7 earnings per share for the current fiscal year.

Insider Activity

In related news, CTO Alexis Le-Quoc sold 53,912 shares of the company’s stock in a transaction dated Wednesday, July 8th. The shares were sold at an average price of $257.24, for a total value of $13,868,322.88. Following the completion of the sale, the chief technology officer owned 509,805 shares of the company’s stock, valued at $131,142,238.20. This represents a 9.56% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Olivier Pomel sold 127,141 shares of the firm’s stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $286.71, for a total transaction of $36,452,596.11. Following the transaction, the chief executive officer directly owned 612,747 shares in the company, valued at approximately $175,680,692.37. The trade was a 17.18% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 1,013,764 shares of company stock valued at $246,668,350. Company insiders own 6.48% of the company’s stock.

Institutional Investors Weigh In On Datadog

Institutional investors have recently added to or reduced their stakes in the company. QRG Capital Management Inc. increased its position in shares of Datadog by 763.4% in the second quarter. QRG Capital Management Inc. now owns 153,974 shares of the company’s stock worth $40,089,000 after acquiring an additional 136,141 shares in the last quarter. Envestnet Portfolio Solutions Inc. lifted its position in shares of Datadog by 1,024.3% in the 2nd quarter. Envestnet Portfolio Solutions Inc. now owns 56,721 shares of the company’s stock valued at $14,768,000 after acquiring an additional 51,676 shares in the last quarter. Andra AP fonden lifted its position in shares of Datadog by 130.4% in the 2nd quarter. Andra AP fonden now owns 131,262 shares of the company’s stock valued at $34,175,000 after acquiring an additional 74,300 shares in the last quarter. Anchor Investment Management LLC boosted its stake in Datadog by 547.8% in the 2nd quarter. Anchor Investment Management LLC now owns 1,328 shares of the company’s stock worth $346,000 after purchasing an additional 1,123 shares during the period. Finally, Revere Asset Management Inc acquired a new position in Datadog in the 2nd quarter worth approximately $2,752,000. 78.29% of the stock is currently owned by institutional investors and hedge funds.

About Datadog

Datadog, Inc (NASDAQ:DDOG) is a cloud-based software company that provides monitoring, observability, security and analytics tools for modern applications and information technology environments. Its platform helps organizations collect, correlate and analyze data from servers, databases, applications, containers, networks and cloud services in a unified environment.

The company’s products include infrastructure monitoring, application performance monitoring, log management, real user and synthetic monitoring, database monitoring, cloud security, software delivery tools, incident management and cloud cost management.