Datadog (NASDAQ:DDOG) Stock Price Target Cut by Wells Fargo & Company

Datadog (NASDAQ:DDOG) had its price target reduced by equities researchers at Wells Fargo & Company from $325.00 to $300.00 in a report issued on Thursday, Benzinga reports. The brokerage currently has an “overweight” rating on the stock. Wells Fargo & Company‘s price target indicates a potential upside of 69.88% from the company’s previous close.

Other analysts also recently issued research reports about the stock. Royal Bank Of Canada reiterated an “outperform” rating and issued a $270.00 price target on shares of Datadog in a research report on Thursday. Stifel Nicolaus set a $245.00 price objective on Datadog in a research report on Wednesday. Citigroup raised their target price on Datadog from $300.00 to $305.00 and gave the company a “buy” rating in a report on Friday, August 7th. FBN Securities initiated coverage on Datadog in a research note on Friday, October 2nd. They set an “outperform” rating and a $325.00 price target for the company. Finally, Yorkville Ives assumed coverage on Datadog in a research report on Monday, October 5th. They set an “outperform” rating and a $335.00 price target for the company. Two investment analysts have rated the stock with a Strong Buy rating, forty-one have issued a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $278.46.

Datadog Stock Down 6.4%

DDOG traded down $12.12 on Thursday, reaching $176.60. The company’s stock had a trading volume of 4,494,510 shares, compared to its average volume of 5,098,736. The company has a market capitalization of $63.41 billion, a price-to-earnings ratio of 362.26, a P/E/G ratio of 21.50 and a beta of 1.50. Datadog has a fifty-two week low of $98.01 and a fifty-two week high of $300.68. 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 stock has a 50 day moving average of $250.09 and a two-hundred day moving average of $199.43.

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

Insider Activity at Datadog

In other news, CFO David Obstler sold 10,000 shares of the stock in a transaction on Monday, September 21st. The shares were sold at an average price of $241.25, for a total value of $2,412,500.00. Following the completion of the sale, the chief financial officer owned 368,067 shares of the company’s stock, valued at $88,796,163.75. This represents a 2.65% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Yanbing Li sold 12,700 shares of the firm’s stock in a transaction on 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 completion of the transaction, the insider directly owned 250,446 shares in the company, valued at approximately $55,413,681.96. This represents a 4.83% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 745,293 shares of company stock valued at $175,536,548 over the last quarter. Company insiders own 6.48% of the company’s stock.

Institutional Trading of Datadog

Hedge funds and other institutional investors have recently modified their holdings of the business. EMC Capital Management acquired a new stake in Datadog during the 2nd quarter valued at approximately $28,000. Cornerstone Financial Management LLC grew its position in shares of Datadog by 54.9% during the second quarter. Cornerstone Financial Management LLC now owns 127 shares of the company’s stock worth $33,000 after buying an additional 45 shares in the last quarter. Elevation Wealth Partners LLC raised its stake in shares of Datadog by 2,700.0% in 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. bought a new position in Datadog during the 3rd quarter worth approximately $46,000. Finally, Planning Strategies Inc. lifted its stake in Datadog by 529.6% during the third quarter. Planning Strategies Inc. now owns 170 shares of the company’s stock worth $47,000 after purchasing an additional 143 shares during the last quarter. 78.29% of the stock is owned by hedge funds and other institutional investors.

Key Datadog News

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Q3 revenue rose 35% year over year to $1.20 billion, beating expectations, while adjusted EPS of $0.81 topped the $0.64 consensus. Datadog also raised its full-year outlook. Datadog beats Q3 earnings and revenue estimates
• Positive Sentiment: Underlying demand indicators were solid: non-AI customer revenue grew in the high 20s, infrastructure monitoring ARR exceeded $2 billion, and the number of customers with at least $100,000 in ARR increased to about 4,860 from 4,060 a year earlier. Three takeaways for long-term investors
• Neutral Sentiment: Some analysts remain bullish, with Wedbush retaining an Outperform rating and Cantor Fitzgerald an Overweight rating, although both cut their price targets. Wedbush rating and price target
• Negative Sentiment: Management’s Q4 revenue outlook points to a marked slowdown from Q3’s 35% growth, with revenue expected near $1.20 billion—roughly flat sequentially. Investors are also concerned that a large AI customer reduced usage and that lower-priced AI renewals and customer volatility could weigh on growth. Lower usage from major AI customer weighs on growth
• Negative Sentiment: Valuation adds to the pressure: after a sharp post-earnings decline, investors appear to be demanding stronger forward growth to support DDOG’s premium multiples. Datadog AI growth and valuation analysis

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.