Datadog (NASDAQ:DDOG) Shares Up 7% Following Analyst Upgrade

Datadog, Inc. (NASDAQ:DDOG) was up 7% on Monday after Citigroup raised their price target on the stock from $300.00 to $305.00. Citigroup currently has a buy rating on the stock. Datadog traded as high as $250.00 and last traded at $250.3330. Approximately 1,386,945 shares were traded during mid-day trading, a decline of 75% from the average daily volume of 5,644,125 shares. The stock had previously closed at $233.93.

A number of other equities research analysts also recently weighed in on DDOG. Sanford C. Bernstein downgraded Datadog from an “outperform” rating to a “market perform” rating and raised their price target for the stock from $180.00 to $226.00 in a research note on Monday, July 6th. Guggenheim raised their price objective on shares of Datadog from $225.00 to $300.00 and gave the company a “buy” rating in a research report on Wednesday, July 22nd. Benchmark reaffirmed a “buy” rating on shares of Datadog in a research report on Tuesday, July 28th. Wall Street Zen raised Datadog from a “hold” rating to a “buy” rating in a research report on Saturday, May 16th. Finally, TD Cowen lifted their price target on shares of Datadog from $260.00 to $300.00 and gave the company a “buy” rating in a research report on Wednesday, July 22nd. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-eight have given a Buy rating, three have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $276.32.

Insider Buying and Selling at Datadog

In related news, Director Michael James Callahan sold 112,500 shares of the stock in a transaction dated Friday, June 12th. The shares were sold at an average price of $231.60, for a total value of $26,055,000.00. Following the completion of the sale, the director owned 14,996 shares in the company, valued at approximately $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 accessible 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 Datadog stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $231.69, for a total value of $29,457,298.29. Following the sale, the chief executive officer directly owned 612,747 shares in the company, valued at approximately $141,967,352.43. This trade represents a 17.18% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 1,355,022 shares of company stock valued at $334,071,384 in the last three months. 6.48% of the stock is owned by insiders.

Institutional Trading of Datadog

Institutional investors and hedge funds have recently modified their holdings of the company. Commerzbank Aktiengesellschaft FI acquired a new position in shares of Datadog in the second quarter valued at $451,000. Plato Investment Management Ltd bought a new stake in Datadog in the 2nd quarter valued at $1,313,000. Regent Peak Wealth Advisors LLC acquired a new position in shares of Datadog in the 2nd quarter valued at $206,000. Tema ETFs LLC lifted its holdings in shares of Datadog by 8.1% during the 2nd quarter. Tema ETFs LLC now owns 5,792 shares of the company’s stock worth $1,508,000 after acquiring an additional 435 shares during the period. Finally, Handelsbanken Fonder AB boosted its position in shares of Datadog by 81.6% during the 2nd quarter. Handelsbanken Fonder AB now owns 170,519 shares of the company’s stock valued at $44,396,000 after acquiring an additional 76,607 shares in the last quarter. 78.29% of the stock is currently owned by institutional investors.

Datadog Stock Performance

The firm has a market capitalization of $89.00 billion, a price-to-earnings ratio of 509.71, a price-to-earnings-growth ratio of 23.28 and a beta of 1.54. The firm’s 50-day moving average price is $249.29 and its two-hundred day moving average price is $178.26. The company has a debt-to-equity ratio of 0.23, a quick ratio of 3.20 and a current ratio of 3.20.

Datadog (NASDAQ:DDOG) last announced its quarterly earnings results on Thursday, August 6th. The company reported $0.65 EPS for the quarter, topping analysts’ consensus estimates of $0.58 by $0.07. The firm had revenue of $1.12 billion during 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 earnings per share. Datadog has set its Q3 2026 guidance at 0.630-0.650 EPS and its FY 2026 guidance at 2.500-2.540 EPS. Sell-side analysts predict that Datadog, Inc. will post 0.66 earnings per share for the current year.

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.