Datadog (NASDAQ:DDOG) Downgraded to “Hold” Rating by Zacks Research

Datadog (NASDAQ:DDOG) was downgraded by analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a research report issued to clients and investors on Monday,Zacks.com reports.

A number of other brokerages have also recently commented on DDOG. Jefferies Financial Group set a $260.00 price target on Datadog in a research note on Thursday, August 6th. CICC Research boosted their price objective on Datadog from $150.00 to $204.00 in a research report on Monday, May 11th. KeyCorp upped their target price on Datadog from $225.00 to $320.00 and gave the stock an “overweight” rating in a report on Thursday, July 16th. Weiss Ratings upgraded Datadog from a “sell (d+)” rating to a “hold (c)” rating in a research report on Wednesday, August 12th. Finally, Arete Research lifted their price target on Datadog from $260.00 to $340.00 and gave the company a “buy” rating in a research note on Tuesday, June 23rd. One investment analyst has rated the stock with a Strong Buy rating, thirty-eight have assigned a Buy rating, five have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $276.32.

Datadog Price Performance

DDOG stock opened at $246.00 on Monday. The company has a 50 day simple moving average of $249.61 and a 200 day simple moving average of $184.12. The stock has a market cap of $88.33 billion, a price-to-earnings ratio of 502.05, a P/E/G ratio of 26.87 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 debt-to-equity ratio of 0.23, a current ratio of 3.20 and a quick ratio of 3.20.

Datadog (NASDAQ:DDOG) last issued its quarterly earnings data on Thursday, August 6th. The company reported $0.65 EPS for the quarter, beating the consensus estimate of $0.58 by $0.07. Datadog had a net margin of 4.48% and a return on equity of 5.67%. The business had revenue of $1.12 billion during the quarter, compared to the consensus estimate of $1.08 billion. During the same quarter in the prior year, the firm earned $0.46 EPS. The firm’s revenue 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. Research analysts anticipate that Datadog will post 0.7 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 on 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 of the company’s stock, valued at approximately $3,473,073.60. This trade represents a 88.24% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO David M. Obstler sold 75,000 shares of Datadog stock in a transaction dated Monday, June 8th. The shares were sold at an average price of $231.69, for a total transaction of $17,376,750.00. Following the transaction, the chief financial officer owned 434,591 shares of the company’s stock, valued at $100,690,388.79. This represents a 14.72% 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. In the last ninety days, insiders have sold 1,465,134 shares of company stock valued at $363,421,509. Corporate insiders own 6.48% of the company’s stock.

Institutional Trading of Datadog

Several institutional investors and hedge funds have recently made changes to their positions in the company. Brighton Jones LLC purchased a new stake in Datadog during the fourth quarter valued at about $209,000. Bison Wealth LLC purchased a new position in shares of Datadog in the fourth quarter worth about $228,000. Empowered Funds LLC raised its position in shares of Datadog by 7.0% in the first quarter. Empowered Funds LLC now owns 10,313 shares of the company’s stock valued at $1,023,000 after purchasing an additional 672 shares during the period. Geneos Wealth Management Inc. raised its position in shares of Datadog by 17.6% in the first quarter. Geneos Wealth Management Inc. now owns 769 shares of the company’s stock valued at $76,000 after purchasing an additional 115 shares during the period. Finally, Sivia Capital Partners LLC purchased a new stake in shares of Datadog during the 2nd quarter valued at approximately $509,000. Hedge funds and other institutional investors own 78.29% of the company’s stock.

Key Headlines Impacting Datadog

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Analysts maintain a favorable view of Datadog, with an average rating of “Moderate Buy” and an average price target of $276.32, implying potential upside from recent trading levels. Needham raised its target to $300, DA Davidson maintained a $315 target, and Scotiabank increased its target to $285. Datadog Receives Moderate Buy Rating
• Positive Sentiment: Datadog’s latest quarterly results exceeded expectations: adjusted EPS was $0.65 versus a $0.58 consensus estimate, while revenue reached $1.12 billion, up 35.6% year over year and above the $1.08 billion forecast. The company also issued quarterly and full-year 2026 EPS guidance. Its observability and security products continue to provide exposure to artificial intelligence and cloud-security spending. AI Security Stocks Stand Out
• Neutral Sentiment: Institutional ownership remains substantial at 78.29%, and several funds increased their Datadog positions or initiated new stakes. However, Goldman Sachs retained a “sell” rating with a $158 target, highlighting significant disagreement over the stock’s valuation.
• Negative Sentiment: Director Matthew Jacobson sold a combined 59,424 shares for approximately $15 million across August 13 and 14, reducing his holdings by roughly 10% while retaining 524,708 shares. Director Amit Agarwal separately sold 20,000 shares for about $5 million, leaving him with only 1,640 shares. Agarwal’s transaction was conducted under a pre-arranged Rule 10b5-1 plan, which may lessen its informational significance, but the repeated sales can still weigh on sentiment. Datadog Director Stock Sale Datadog Insider Selling Alert
• Negative Sentiment: Datadog trades at an exceptionally high valuation, with a price-to-earnings ratio above 500 and a PEG ratio near 27. That leaves the stock vulnerable to profit-taking or disappointment if its rapid growth and guidance fail to accelerate enough to justify investor expectations.

Datadog Company Profile

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.