Citigroup Issues Pessimistic Forecast for Datadog (NASDAQ:DDOG) Stock Price

Datadog (NASDAQ:DDOG) had its price objective reduced by investment analysts at Citigroup from $305.00 to $290.00 in a research note issued to investors on Thursday, Benzinga reports. The brokerage currently has a “buy” rating on the stock. Citigroup‘s price objective would suggest a potential upside of 61.97% from the stock’s previous close.

Several other equities analysts have also recently weighed in on the company. Royal Bank Of Canada cut their price objective on Datadog from $320.00 to $270.00 and set an “outperform” rating on the stock in a report on Thursday. Oppenheimer increased their target price on Datadog from $300.00 to $330.00 and gave the stock an “outperform” rating in a research note on Monday, October 26th. Canadian Imperial Bank of Commerce raised their target price on shares of Datadog from $280.00 to $315.00 and gave the stock an “outperform” rating in a report on Friday, October 9th. Citizens Jmp lifted their price target on shares of Datadog from $225.00 to $311.00 and gave the company a “market outperform” rating in a research note on Monday, July 20th. Finally, Wells Fargo & Company reduced their price target on shares of Datadog from $325.00 to $300.00 and set an “overweight” rating for the company in a report on Thursday. Two research analysts have rated the stock with a Strong Buy rating, thirty-eight have assigned a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $278.43.

Datadog Trading Up 2.5%

Shares of NASDAQ DDOG traded up $4.44 during midday trading on Thursday, reaching $179.04. 5,937,232 shares of the stock were exchanged, compared to its average volume of 3,026,833. Datadog has a 12 month low of $98.01 and a 12 month high of $300.68. The company has a market capitalization of $64.29 billion, a price-to-earnings ratio of 252.17, a P/E/G ratio of 21.09 and a beta of 1.50. The company has a debt-to-equity ratio of 0.23, a current ratio of 3.20 and a quick ratio of 3.20. The business has a 50-day simple moving average of $247.75 and a two-hundred day simple moving average of $200.01.

Datadog (NASDAQ:DDOG) last released its quarterly earnings data on Wednesday, November 4th. The company reported $0.81 EPS for the quarter, beating analysts’ consensus estimates of $0.64 by $0.17. The business had revenue of $1.20 billion during the quarter, compared to analysts’ expectations of $1.15 billion. Datadog had a net margin of 4.48% and a return on equity of 5.67%. The firm’s quarterly revenue was up 35.2% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.55 EPS. As a group, equities research analysts expect that Datadog will post 0.70 EPS for the current year.

Insider Transactions at Datadog

In other news, CRO Sean Walters sold 11,710 shares of the firm’s stock in a transaction that occurred on Friday, September 11th. The shares were sold at an average price of $221.04, for a total transaction of $2,588,378.40. Following the completion of the transaction, the executive directly owned 233,135 shares of the company’s stock, valued at $51,532,160.40. This trade represents a 4.78% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Yanbing Li sold 12,700 shares of Datadog stock in a transaction that occurred on Friday, September 11th. The shares were sold at an average price of $221.26, for a total transaction of $2,810,002.00. Following the completion of the sale, the insider owned 250,446 shares in the company, valued at $55,413,681.96. This trade represents a 4.83% 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. In the last three months, insiders have sold 745,293 shares of company stock worth $175,536,548. Corporate insiders own 6.48% of the company’s stock.

Institutional Investors Weigh In On Datadog

Several institutional investors and hedge funds have recently added to or reduced their stakes in DDOG. Integrated Wealth Concepts LLC raised its position in Datadog by 1,691.4% during the second quarter. Integrated Wealth Concepts LLC now owns 186,216 shares of the company’s stock worth $48,483,000 after acquiring an additional 175,821 shares in the last quarter. Congress Asset Management Co. grew its position in shares of Datadog by 3.0% in the 3rd quarter. Congress Asset Management Co. now owns 268,825 shares of the company’s stock valued at $71,350,000 after acquiring an additional 7,802 shares during the period. MassMutual Private Wealth & Trust FSB increased its stake in shares of Datadog by 7,711.3% during the 3rd quarter. MassMutual Private Wealth & Trust FSB now owns 94,048 shares of the company’s stock worth $25,755,000 after purchasing an additional 92,844 shares during the last quarter. Cooper Financial Group increased its stake in shares of Datadog by 188.1% during the 3rd quarter. Cooper Financial Group now owns 20,934 shares of the company’s stock worth $5,733,000 after purchasing an additional 13,669 shares during the last quarter. Finally, Saudi Central Bank increased its stake in shares of Datadog by 91.6% during the 2nd quarter. Saudi Central Bank now owns 21,867 shares of the company’s stock worth $5,693,000 after purchasing an additional 10,455 shares during the last quarter. 78.29% of the stock is owned by institutional investors.

Key Datadog News

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Datadog beat Q3 estimates, reporting $1.20 billion in revenue, up 35.2% year over year, and adjusted EPS of $0.81 versus a $0.64 consensus. Infrastructure Monitoring annual recurring revenue also topped $2 billion, with broad-based platform use and AI adoption supporting demand. Article: Datadog’s Infrastructure Monitoring Tops $2B ARR in Q3, Revenues Beat
• Neutral Sentiment: Some analysts still see upside: several firms retained Buy or Overweight ratings even while trimming price targets. One valuation analysis also argues the share price may be supportable by future cash generation, though that depends on expectations for growth and AI demand. Article: Datadog Stock Could Still Be Undervalued As AI Hopes Swing
• Negative Sentiment: Investors remain wary of the outlook: Q4 guidance and customer-related factors signal a potential slowdown from Q3’s growth, while AI-customer discounts and lower-priced renewals may temper revenue growth. The forecast also relies on a minimum commitment from Datadog’s largest customer, adding uncertainty. Article: DDOG Q3 Earnings Call Highlights AI Growth and Customer Renewals
• Negative Sentiment: Multiple firms cut their price targets after the results—including Rosenblatt, TD Cowen, Wells Fargo, Citigroup and Wedbush. Though ratings remained favorable in several reports, the reductions suggest analysts are tempering near-term expectations. Article: Rosenblatt Lowers Datadog Price Target Article: Wedbush Sets New Datadog Price Target

About Datadog

Datadog, Inc provides a cloud-based monitoring and security platform that helps organizations observe and manage their technology environments. Its tools collect and analyze data from applications, infrastructure, networks, and other systems to help teams detect issues and improve performance.

The company’s products include infrastructure monitoring, application performance monitoring, log management, digital experience monitoring, database and network monitoring, and security tools. Datadog also offers capabilities for incident management and cloud security.

Founded in 2010 by Olivier Pomel and Alexis Lê-Quôc, Datadog serves customers around the world.