Datadog (NASDAQ:DDOG) Stock Gets Price Target Trim from TD Cowen

Datadog (NASDAQ:DDOG) had its price target lowered by equities researchers at TD Cowen from $300.00 to $275.00 in a note issued to investors on Thursday, Benzinga reports. The brokerage presently has a “buy” rating on the stock. TD Cowen‘s price objective would indicate a potential upside of 57.75% from the company’s previous close.

DDOG has been the topic of several other reports. Canaccord Genuity Group increased their target price on Datadog from $250.00 to $295.00 and gave the stock a “buy” rating in a research report on Tuesday, August 4th. FBN Securities started coverage on Datadog in a research note on Friday, October 2nd. They issued an “outperform” rating and a $325.00 price target on the stock. Raymond James Financial restated an “outperform” rating and issued a $280.00 price target on shares of Datadog in a report on Thursday, August 6th. Sanford C. Bernstein dropped their price objective on shares of Datadog from $350.00 to $273.00 and set an “outperform” rating for the company in a research note on Thursday. Finally, Guggenheim reiterated a “buy” rating on shares of Datadog in a report on Wednesday. Two investment analysts have rated the stock with a Strong Buy rating, forty-one have assigned a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Datadog currently has a consensus rating of “Moderate Buy” and an average target price of $275.78.

Datadog Trading Down 7.6%

DDOG traded down $14.39 during trading on Thursday, hitting $174.33. The company’s stock had a trading volume of 7,986,044 shares, compared to its average volume of 5,116,217. The firm’s 50 day moving average price is $250.09 and its 200-day moving average price is $199.43. 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 stock has a market cap of $62.60 billion, a PE ratio of 358.25, a PEG ratio of 21.50 and a beta of 1.50. Datadog has a twelve month low of $98.01 and a twelve month high of $300.68.

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

Insider Transactions at Datadog

In related news, CTO Alexis Le-Quoc sold 53,912 shares of Datadog stock in a transaction on Monday, August 10th. The stock was sold at an average price of $253.36, for a total value of $13,659,144.32. Following the transaction, the chief technology officer owned 509,805 shares in the company, valued at approximately $129,164,194.80. This trade represents a 9.56% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Matthew Jacobson sold 39,912 shares of Datadog stock in a transaction dated Thursday, August 13th. The shares were sold at an average price of $250.55, for a total value of $9,999,951.60. Following the completion of the transaction, the director directly owned 544,220 shares in the company, valued at $136,354,321. This represents a 6.83% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 745,293 shares of company stock valued at $175,536,548. Corporate insiders own 6.48% of the company’s stock.

Hedge Funds Weigh In On Datadog

Institutional investors and hedge funds have recently bought and sold shares of the stock. EMC Capital Management acquired a new position in shares of Datadog during the second quarter worth $28,000. Cornerstone Financial Management LLC grew its holdings in Datadog by 54.9% during the 2nd quarter. Cornerstone Financial Management LLC now owns 127 shares of the company’s stock valued at $33,000 after purchasing an additional 45 shares in the last quarter. Elevation Wealth Partners LLC grew its holdings in Datadog by 2,700.0% during the 2nd quarter. Elevation Wealth Partners LLC now owns 168 shares of the company’s stock valued at $44,000 after purchasing an additional 162 shares in the last quarter. Armstrong Advisory Group Inc. acquired a new stake in Datadog during the 3rd quarter valued at $46,000. Finally, Planning Strategies Inc. increased its stake in Datadog by 529.6% during the 3rd quarter. Planning Strategies Inc. now owns 170 shares of the company’s stock worth $47,000 after buying an additional 143 shares during the period. Hedge funds and other institutional investors own 78.29% of the company’s stock.

More Datadog News

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Q3 revenue rose 35.2% year over year to $1.20 billion, ahead of expectations, while adjusted EPS of $0.81 topped the $0.64 consensus. Growth in AI workloads and product adoption, along with a larger base of high-spending customers, supports the longer-term growth case. Datadog Q3 Earnings & Revenues Surpass Estimates
• Neutral Sentiment: Several analysts reduced their price targets after the results but maintained bullish ratings, including Rosenblatt ($285), DA Davidson ($275), Barclays ($262), Wells Fargo ($300), Wedbush ($240) and Cantor Fitzgerald ($260). The cuts suggest lower near-term expectations, although the firms still see potential upside. Read More., Read More., Read More., Read More., Read More. and Read More.
• Negative Sentiment: Investors are concerned that Q4 revenue guidance of about $1.20 billion implies a marked growth slowdown from Q3. Lower usage by a major AI customer and discounted AI-related renewals add uncertainty about how quickly that growth can recover. Datadog Says Lower Usage From Major AI Customer Is Weighing on Growth
• Negative Sentiment: Datadog’s premium valuation leaves the shares vulnerable when growth expectations soften, helping explain why the market has reacted negatively despite the earnings beat and higher full-year outlook. Datadog: AI Story Priced For Perfection

Datadog Company Profile

Datadog, Inc is a technology company that provides a cloud-based monitoring and security platform for applications, infrastructure and other technology environments. Its platform helps organizations collect, analyze and visualize data from servers, databases, containers, cloud services, applications and user interactions in a unified environment.

Datadog’s products include infrastructure monitoring, application performance monitoring, log management, real user monitoring, synthetic monitoring, network performance monitoring, cloud security, software delivery tools and incident-management capabilities.