Datadog (NASDAQ:DDOG) Shares Down 7.9% on Insider Selling

Datadog, Inc. (NASDAQ:DDOG)’s stock price was down 7.9% on Wednesday following insider selling activity. The company traded as low as $245.63 and last traded at $247.99. Approximately 2,517,439 shares traded hands during trading, a decline of 57% from the average daily volume of 5,922,660 shares. The stock had previously closed at $269.13.

Specifically, CTO Alexis Le-Quoc sold 21,506 shares of the stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $267.15, for a total transaction of $5,745,327.90. Following the transaction, the chief technology officer owned 509,805 shares of the company’s stock, valued at $136,194,405.75. This represents a 4.05% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CTO Alexis Le-Quoc sold 53,912 shares of the stock in a transaction on Monday, June 1st. The stock was sold at an average price of $271.05, for a total value of $14,612,847.60. Following the transaction, the chief technology officer directly owned 531,311 shares in the company, valued at approximately $144,011,846.55. This represents a 9.21% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In other Datadog news, CEO Olivier Pomel sold 84,698 shares of the stock in a transaction on Tuesday, May 26th. The stock was sold at an average price of $223.58, for a total transaction of $18,936,778.84. Following the transaction, the chief executive officer owned 750,981 shares of the company’s stock, valued at $167,904,331.98. This represents a 10.14% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analyst Ratings Changes

A number of research analysts have weighed in on DDOG shares. BMO Capital Markets increased 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 target price on Datadog from $175.00 to $225.00 and gave the stock a “buy” rating in a research report on Thursday, May 7th. Monness Crespi & Hardt increased their target price on Datadog from $255.00 to $270.00 in a research report on Thursday, May 7th. CICC Research increased their target price on Datadog from $150.00 to $204.00 in a research report on Monday, May 11th. Finally, Canadian Imperial Bank of Commerce reaffirmed an “outperform” rating and issued a $250.00 target price on shares of Datadog in a research report on Friday, May 8th. One research analyst has rated the stock with a Strong Buy rating, forty have given a Buy rating, one has issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $219.69.

More Datadog News

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Datadog has been highlighted among the most upgraded software stocks, suggesting analysts remain constructive on its growth outlook and the broader AI-driven rebound in software. 3 Most Upgraded Stocks Last Month According to MarketBeat (DDOG)
• Positive Sentiment: Investor and industry coverage continues to frame Datadog as a beneficiary of renewed demand for AI-related software, which may be helping sentiment around the stock. DDOG, ORCL, MSFT emerge as top software stock picks as the sector rebounds: report
• Neutral Sentiment: Datadog’s recent conference appearance may have reinforced its story, but no major new catalyst was identified in the provided headline. Datadog, Inc. (DDOG) Presents at Bank of America 2026 Global Technology Conference Transcript
• Neutral Sentiment: Datadog also drew heavy search interest from investors, but the article itself did not add a clear new fundamental catalyst. Investors Heavily Search Datadog, Inc. (DDOG): Here is What You Need to Know
• Negative Sentiment: Several Datadog executives, including CTO Alexis Le-Quoc, CEO Olivier Pomel, COO Adam Blitzer, CFO David M. Obstler, CRO Sean Michael Walters, and General Counsel Kerry Acocella, disclosed stock sales in recent filings. Most were tied to 10b5-1 plans or tax withholding on equity vesting, but the wave of insider selling can still weigh on sentiment. SEC insider filing

Datadog Trading Down 2.7%

The stock has a market capitalization of $86.71 billion, a price-to-earnings ratio of 641.07, a P/E/G ratio of 26.80 and a beta of 1.56. 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 fifty day moving average of $164.88 and a 200-day moving average of $144.65.

Datadog (NASDAQ:DDOG) last announced its quarterly earnings results on Thursday, May 7th. The company reported $0.60 earnings per share (EPS) for the quarter, beating 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 firm had revenue of $1.01 billion during the quarter, compared to the consensus estimate of $960.12 million. During the same period in the prior year, the firm earned $0.46 EPS. The firm’s quarterly revenue was up 32.1% compared to the same quarter last year. Datadog has set its FY 2026 guidance at 2.360-2.440 EPS and its Q2 2026 guidance at 0.570-0.590 EPS. As a group, equities analysts predict that Datadog, Inc. will post 0.61 earnings per share for the current fiscal year.

Institutional Trading of Datadog

Several large investors have recently modified their holdings of DDOG. Rothschild Investment LLC grew its stake in shares of Datadog by 126.6% during the third quarter. Rothschild Investment LLC now owns 179 shares of the company’s stock valued at $25,000 after acquiring an additional 100 shares in the last quarter. Physician Wealth Advisors Inc. grew its stake in shares of Datadog by 315.2% during the third quarter. Physician Wealth Advisors Inc. now owns 191 shares of the company’s stock valued at $27,000 after acquiring an additional 145 shares in the last quarter. Westside Investment Management Inc. grew its stake in shares of Datadog by 74.3% during the third quarter. Westside Investment Management Inc. now owns 176 shares of the company’s stock valued at $27,000 after acquiring an additional 75 shares in the last quarter. JPL Wealth Management LLC acquired a new stake in shares of Datadog during the third quarter valued at about $27,000. Finally, CoreCap Advisors LLC grew its stake in shares of Datadog by 1,461.5% during the fourth quarter. CoreCap Advisors LLC now owns 203 shares of the company’s stock valued at $28,000 after acquiring an additional 190 shares in the last quarter. 78.29% of the stock is currently owned by institutional investors and hedge funds.

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.