Datadog (NASDAQ:DDOG) Upgraded to “Strong-Buy” at Zacks Research

Zacks Research upgraded shares of Datadog (NASDAQ:DDOG) from a hold rating to a strong-buy rating in a research note published on Tuesday,Zacks.com reports.

A number of other research analysts also recently weighed in on the stock. Raymond James Financial raised their price target on shares of Datadog from $170.00 to $220.00 in a report on Thursday, May 7th. Bank of America upped their price objective on shares of Datadog from $260.00 to $280.00 and gave the stock a “buy” rating in a report on Monday, June 8th. Canadian Imperial Bank of Commerce increased their target price on shares of Datadog from $250.00 to $280.00 and gave the stock an “outperform” rating in a research report on Wednesday, June 10th. Scotiabank raised their target price on Datadog from $225.00 to $275.00 and gave the company an “outperform” rating in a report on Thursday, June 18th. Finally, Wall Street Zen upgraded Datadog from a “hold” rating to a “buy” rating in a report on Saturday, May 16th. Two investment analysts have rated the stock with a Strong Buy rating, forty have given a Buy rating, two have assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, Datadog presently has a consensus rating of “Moderate Buy” and an average target price of $244.73.

Datadog Price Performance

DDOG opened at $261.09 on Tuesday. The stock has a fifty day moving average price of $221.33 and a 200 day moving average price of $158.62. The company has a current ratio of 3.40, a quick ratio of 3.40 and a debt-to-equity ratio of 0.25. Datadog has a 1 year low of $98.01 and a 1 year high of $278.70. The stock has a market cap of $92.94 billion, a price-to-earnings ratio of 687.10, a PEG ratio of 26.11 and a beta of 1.54.

Datadog (NASDAQ:DDOG) last issued its earnings results on Thursday, May 7th. The company reported $0.60 earnings per share 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 company had revenue of $1.01 billion for the quarter, compared to analyst estimates of $960.12 million. During the same period in the prior year, the firm posted $0.46 EPS. The business’s 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. Analysts forecast that Datadog will post 0.64 EPS for the current fiscal year.

Insider Activity

In related news, Director Michael James Callahan sold 112,500 shares of Datadog stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $231.60, for a total transaction of $26,055,000.00. Following the sale, the director directly owned 14,996 shares of the company’s stock, valued at $3,473,073.60. This trade represents a 88.24% 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 127,141 shares of the company’s stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $199.84, for a total value of $25,407,857.44. Following the completion of the transaction, the chief executive officer directly owned 835,679 shares of the company’s stock, valued at approximately $167,002,091.36. This trade represents a 13.21% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 1,405,621 shares of company stock worth $309,070,507. Corporate insiders own 6.48% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. JPL Wealth Management LLC bought a new stake in Datadog in the 3rd quarter valued at $27,000. CoreCap Advisors LLC boosted its position in shares of Datadog by 1,461.5% during the 4th 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. Flagship Harbor Advisors LLC acquired a new stake in shares of Datadog during the 4th quarter valued at about $31,000. NBC Securities Inc. increased its stake in Datadog by 242.6% in the fourth quarter. NBC Securities Inc. now owns 233 shares of the company’s stock valued at $32,000 after acquiring an additional 165 shares during the period. Finally, Rothschild Investment LLC increased its stake in Datadog by 52.5% in the fourth quarter. Rothschild Investment LLC now owns 273 shares of the company’s stock valued at $37,000 after acquiring an additional 94 shares during the period. 78.29% of the stock is currently owned by institutional investors and hedge funds.

Key Datadog News

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Benchmark raised its price target on Datadog to a Street-high $330 from $260 and kept a Buy rating, citing strong execution and customer momentum in its product-led growth business. Benchmark lifts price target on Datadog
• Positive Sentiment: Datadog’s acquisition of Adaptive ML and its push into AI-focused observability continue to support the bull case, reinforcing expectations for longer-term growth. Datadog AI growth and Adaptive ML acquisition
• Positive Sentiment: Several articles still describe DDOG as a strong momentum stock, which can attract traders and support near-term demand. Datadog momentum stock article
• Neutral Sentiment: Director Michael James Callahan sold 12,500 shares in a pre-arranged Rule 10b5-1 transaction. The sale may add to insider-selling chatter, but it does not necessarily signal a fundamental problem. SEC filing on insider sale
• Neutral Sentiment: Another director sale by Amit Agarwal was disclosed, also under a 10b5-1 plan, keeping insider activity in focus but not necessarily changing the outlook. SEC filing on insider sale
• Negative Sentiment: Bernstein downgraded Datadog to Market Perform, arguing that growth may slow and that fourth-quarter revenue growth could miss elevated expectations. Bernstein downgrade on Datadog
• Negative Sentiment: That downgrade also raised concerns that Datadog’s AI growth story may already be priced in, limiting upside if near-term fundamentals do not accelerate. Bernstein caution on Datadog AI growth

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.