Datadog (NASDAQ:DDOG) Shares Gap Down After Analyst Downgrade

Shares of Datadog, Inc. (NASDAQ:DDOG) gapped down before the market opened on Wednesday after BTIG Research lowered their price target on the stock from $289.00 to $260.00. The stock had previously closed at $220.52, but opened at $199.74. BTIG Research currently has a buy rating on the stock. Datadog shares last traded at $197.1460, with a volume of 3,335,455 shares traded.

Several other equities research analysts have also issued reports on the stock. Yorkville Ives initiated coverage on shares of Datadog in a research note on Monday, October 5th. They set an “outperform” rating and a $335.00 target price on the stock. Cantor Fitzgerald increased their price objective on shares of Datadog from $226.00 to $327.00 and gave the company an “overweight” rating in a report on Monday, August 3rd. Sanford C. Bernstein upgraded shares of Datadog from a “market perform” rating to an “outperform” rating and raised their price objective for the stock from $237.00 to $350.00 in a research report on Monday, October 19th. Benchmark reaffirmed a “buy” rating on shares of Datadog in a research note on Tuesday, July 28th. Finally, FBN Securities started coverage on shares of Datadog in a research report on Friday, October 2nd. They set an “outperform” rating and a $325.00 price objective for the company. Three investment analysts have rated the stock with a Strong Buy rating, forty have issued a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $287.35.

Insider Buying and Selling at Datadog

In related news, insider Yanbing Li sold 12,700 shares of Datadog stock in a transaction dated 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 sale, the insider directly owned 250,446 shares in the company, valued at $55,413,681.96. The trade was a 4.83% decrease in their ownership of the stock. The sale was disclosed in a document filed 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, CTO Alexis Le-Quoc sold 43,224 shares of the company’s stock in a transaction on Wednesday, October 28th. The stock was sold at an average price of $278.90, for a total transaction of $12,055,173.60. Following the sale, the chief technology officer directly owned 488,033 shares of the company’s stock, valued at approximately $136,112,403.70. This represents a 8.14% 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 ninety days, insiders have sold 765,293 shares of company stock valued at $180,233,548. Corporate insiders own 6.48% of the company’s stock.

Key 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, beating the $1.15 billion consensus, while adjusted EPS of $0.81 topped estimates of $0.64. Datadog also reported stronger operational results and raised its guidance. Datadog Announces Third Quarter 2026 Financial Results
• Positive Sentiment: Customer expansion was notable: Datadog had about 4,860 customers generating at least $100,000 in annual recurring revenue, up from roughly 4,060 a year earlier. The company also launched Scout 1.0, its first specialized model, for its Bits Investigation product. Datadog Announces Third Quarter 2026 Financial Results
• Negative Sentiment: The main concern is the fourth-quarter outlook: revenue is expected to be around $1.20 billion, roughly flat with Q3. Investors may see this as a slowdown after 35% annual growth, making the outlook disappointing relative to elevated expectations despite the quarterly beat. Datadog Guides Q4 Sales Flat After 35% Growth

Institutional Trading of Datadog

Institutional investors have recently modified their holdings of the company. Integrated Wealth Concepts LLC lifted its holdings in shares of Datadog by 1,691.4% during the 2nd 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 during the period. Congress Asset Management Co. increased its stake in Datadog by 3.0% in the third 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 Datadog by 7,711.3% in the third quarter. MassMutual Private Wealth & Trust FSB now owns 94,048 shares of the company’s stock valued at $25,755,000 after acquiring an additional 92,844 shares during the period. Cooper Financial Group raised its position in Datadog by 188.1% in the third 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 in the last quarter. Finally, Saudi Central Bank raised its position in Datadog by 91.6% in the second 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 in the last quarter. Institutional investors and hedge funds own 78.29% of the company’s stock.

Datadog Price Performance

The stock has a market cap of $67.62 billion, a price-to-earnings ratio of 384.30, a price-to-earnings-growth ratio of 21.09 and a beta of 1.50. The company has a quick ratio of 3.20, a current ratio of 3.20 and a debt-to-equity ratio of 0.23. The company’s 50-day moving average is $250.77 and its 200-day moving average is $199.09.

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

About Datadog

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.