Datadog (NASDAQ:DDOG) Trading Down 3.5% – Should You Sell?

Datadog, Inc. (NASDAQ:DDOG)’s share price fell 3.5% during trading on Wednesday . The stock traded as low as $135.11 and last traded at $136.3240. 428,868 shares changed hands during mid-day trading, a decline of 92% from the average session volume of 5,373,812 shares. The stock had previously closed at $141.23.

Wall Street Analysts Forecast Growth

DDOG has been the topic of several recent research reports. Capital One Financial lifted their price objective on shares of Datadog from $149.00 to $179.00 in a research note on Thursday, October 16th. Canaccord Genuity Group cut their target price on shares of Datadog from $225.00 to $210.00 and set a “buy” rating for the company in a research note on Friday, December 19th. Morgan Stanley lifted their price target on shares of Datadog from $165.00 to $180.00 and gave the stock an “equal weight” rating in a research report on Friday, November 7th. Bank of America upped their price target on Datadog from $180.00 to $215.00 and gave the company a “buy” rating in a report on Friday, November 7th. Finally, Barclays increased their price objective on Datadog from $170.00 to $215.00 and gave the company an “overweight” rating in a research report on Friday, November 7th. Thirty-one research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Datadog presently has a consensus rating of “Moderate Buy” and a consensus target price of $207.78.

Datadog Trading Down 2.4%

The company’s 50-day moving average is $160.09 and its 200 day moving average is $145.88. The company has a current ratio of 3.66, a quick ratio of 3.66 and a debt-to-equity ratio of 0.29. The firm has a market cap of $48.32 billion, a PE ratio of 444.02, a P/E/G ratio of 30.98 and a beta of 1.23.

Datadog (NASDAQ:DDOG) last posted its quarterly earnings results on Thursday, November 6th. The company reported $0.55 earnings per share for the quarter, beating the consensus estimate of $0.45 by $0.10. The firm had revenue of $885.65 million for the quarter, compared to analyst estimates of $852.77 million. Datadog had a return on equity of 4.14% and a net margin of 3.32%.Datadog’s quarterly revenue was up 28.4% on a year-over-year basis. During the same period in the previous year, the firm earned $0.46 earnings per share. Datadog has set its FY 2025 guidance at 2.000-2.020 EPS and its Q4 2025 guidance at 0.54-0.56 EPS. As a group, sell-side analysts predict that Datadog, Inc. will post 0.34 EPS for the current year.

Insider Buying and Selling at Datadog

In other Datadog news, insider Yanbing Li sold 6,715 shares of the company’s stock in a transaction dated Tuesday, December 2nd. The shares were sold at an average price of $158.60, for a total transaction of $1,064,999.00. Following the completion of the sale, the insider directly owned 199,394 shares in the company, valued at $31,623,888.40. This represents a 3.26% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, COO Adam Blitzer sold 8,023 shares of the firm’s stock in a transaction on Wednesday, December 3rd. The stock was sold at an average price of $154.61, for a total transaction of $1,240,436.03. Following the completion of the sale, the chief operating officer owned 165,197 shares in the company, valued at approximately $25,541,108.17. The trade was a 4.63% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 1,305,579 shares of company stock worth $231,557,832 in the last quarter. 8.70% of the stock is owned by corporate insiders.

Institutional Trading of Datadog

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. boosted its holdings in Datadog by 30.3% during the third quarter. Vanguard Group Inc. now owns 41,902,227 shares of the company’s stock valued at $5,966,877,000 after purchasing an additional 9,748,738 shares in the last quarter. State Street Corp lifted its position in shares of Datadog by 106.8% during the 3rd quarter. State Street Corp now owns 13,732,777 shares of the company’s stock worth $1,955,547,000 after buying an additional 7,091,075 shares during the period. Norges Bank acquired a new stake in Datadog in the 2nd quarter valued at $347,728,000. Invesco Ltd. grew its position in Datadog by 119.2% in the third quarter. Invesco Ltd. now owns 4,075,721 shares of the company’s stock valued at $580,383,000 after acquiring an additional 2,216,402 shares during the period. Finally, Dragoneer Investment Group LLC raised its stake in Datadog by 729.5% during the second quarter. Dragoneer Investment Group LLC now owns 2,254,563 shares of the company’s stock worth $302,855,000 after acquiring an additional 1,982,763 shares in the last quarter. Institutional investors own 78.29% of the company’s stock.

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.