Datadog (NASDAQ:DDOG) Receives “Buy” Rating from DA Davidson

DA Davidson reiterated their buy rating on shares of Datadog (NASDAQ:DDOG) in a research report report published on Friday,Benzinga reports. The brokerage currently has a $315.00 price objective on the stock.

DDOG has been the topic of a number of other research reports. KeyCorp boosted their price target on shares of Datadog from $225.00 to $320.00 and gave the company an “overweight” rating in a report on Thursday, July 16th. Wells Fargo & Company lifted their price objective on shares of Datadog from $230.00 to $295.00 and gave the stock an “overweight” rating in a research report on Monday, July 20th. Stifel Nicolaus set a $305.00 target price on shares of Datadog in a research note on Thursday, May 7th. Robert W. Baird set a $210.00 target price on Datadog in a report on Friday, May 8th. Finally, Arete Research raised their target price on Datadog from $260.00 to $340.00 and gave the stock a “buy” rating in a research report on Tuesday, June 23rd. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-eight have assigned a Buy rating, three have issued a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $276.32.

Datadog Trading Up 2.0%

Shares of DDOG opened at $233.93 on Friday. The business’s 50-day moving average price is $249.29 and its 200 day moving average price is $177.85. The stock has a market capitalization of $83.27 billion, a P/E ratio of 477.42, a P/E/G ratio of 23.23 and a beta of 1.54. Datadog has a 1-year low of $98.01 and a 1-year high of $292.72. The company has a current ratio of 3.20, a quick ratio of 3.40 and a debt-to-equity ratio of 0.23.

Datadog (NASDAQ:DDOG) last posted its quarterly earnings data on Thursday, August 6th. The company reported $0.65 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.58 by $0.07. Datadog had a return on equity of 5.67% and a net margin of 4.48%.The firm had revenue of $1.12 billion for the quarter, compared to the consensus estimate of $1.08 billion. During the same quarter in the previous year, the company earned $0.46 EPS. The business’s revenue for the quarter was up 35.6% compared to the same quarter last year. Datadog has set its Q3 2026 guidance at 0.630-0.650 EPS and its FY 2026 guidance at 2.500-2.540 EPS. Analysts expect that Datadog will post 0.64 earnings per share for the current year.

Insider Buying and Selling at Datadog

In other news, CTO Alexis Le-Quoc sold 53,912 shares of the company’s stock in a transaction on Monday, June 1st. The shares were 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 of the company’s stock, valued at approximately $144,011,846.55. This represents a 9.21% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed 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, Director Michael James Callahan sold 112,500 shares of the stock in a transaction on Friday, June 12th. The stock was sold at an average price of $231.60, for a total value of $26,055,000.00. Following the sale, the director owned 14,996 shares of the company’s stock, valued at approximately $3,473,073.60. This represents a 88.24% 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 1,502,163 shares of company stock worth $363,481,842 over the last 90 days. 6.48% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Datadog

Several institutional investors have recently made changes to their positions in the company. JPL Wealth Management LLC bought a new position in Datadog during the third quarter valued at approximately $27,000. Flagship Harbor Advisors LLC bought a new stake in Datadog in the fourth quarter worth approximately $31,000. NBC Securities Inc. grew its position in Datadog by 242.6% in the fourth quarter. NBC Securities Inc. now owns 233 shares of the company’s stock worth $32,000 after acquiring an additional 165 shares in the last quarter. Rothschild Investment LLC increased its stake in shares of Datadog by 52.5% during the 4th quarter. Rothschild Investment LLC now owns 273 shares of the company’s stock worth $37,000 after purchasing an additional 94 shares during the last quarter. Finally, Annis Gardner Whiting Capital Advisors LLC increased its stake in shares of Datadog by 341.7% during the 1st quarter. Annis Gardner Whiting Capital Advisors LLC now owns 318 shares of the company’s stock worth $38,000 after purchasing an additional 246 shares during the last quarter. 78.29% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting Datadog

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Datadog delivered a strong second quarter: revenue rose 35.6% year over year to $1.12 billion, exceeding the $1.08 billion consensus estimate, while EPS of $0.65 topped expectations of $0.58 and increased from $0.46 a year earlier. Growth was broad-based across AI and non-AI demand, with billings and remaining performance obligations also supporting future revenue visibility. Datadog Q2 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Management raised its fiscal 2026 outlook to approximately $4.45-$4.47 billion in revenue and $2.50-$2.54 in EPS. Third-quarter EPS guidance of $0.63-$0.65 is above the $0.52 analyst consensus, providing a positive catalyst despite revenue guidance being roughly in line with expectations. Datadog Beats Earnings and Raises Outlook
• Positive Sentiment: Citigroup raised its DDOG price target to $305 and reaffirmed a “Buy” rating. DA Davidson also maintained its “Buy” rating with a $315 target, suggesting analysts see significant upside following the pullback. Datadog Analyst Price Targets
• Neutral Sentiment: CEO Olivier Pomel sold 127,141 shares worth approximately $36.5 million under a pre-arranged Rule 10b5-1 plan. The sale reduced his holdings by about 17%, but the planned nature of the transaction limits its value as a signal about Datadog’s business outlook. Datadog CEO Stock Sale Filing
• Negative Sentiment: The earlier decline reflected a high valuation and exceptionally high investor expectations rather than a quarterly miss. Investors focused on slowing bookings growth and management’s disclosure that its largest customer, reportedly a major AI company, plans to reduce usage, creating a risk to consumption-based revenue. Datadog Major Customer Usage News

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.