Datadog (NASDAQ:DDOG) Reaches New 12-Month High on Earnings Beat

Datadog, Inc. (NASDAQ:DDOG)’s stock price hit a new 52-week high during trading on Thursday after the company announced better than expected quarterly earnings. The company traded as high as $186.92 and last traded at $187.02, with a volume of 3514952 shares trading hands. The stock had previously closed at $154.98.

The company reported $0.55 EPS for the quarter, topping the consensus estimate of $0.45 by $0.10. The firm had revenue of $885.65 million for the quarter, compared to the consensus estimate of $852.77 million. Datadog had a net margin of 4.13% and a return on equity of 5.04%. The business’s revenue was up 28.4% compared to the same quarter last year. During the same period last year, the firm posted $0.46 earnings per share. Datadog has set its FY 2025 guidance at 2.000-2.020 EPS. Q4 2025 guidance at 0.54-0.56 EPS.

Wall Street Analyst Weigh In

Several research analysts have commented on DDOG shares. CIBC started coverage on shares of Datadog in a research note on Monday. They set a “neutral” rating and a $170.00 price target on the stock. Cibc Captl Mkts raised shares of Datadog to a “hold” rating in a research note on Monday. Oppenheimer lifted their target price on shares of Datadog from $165.00 to $195.00 and gave the stock an “outperform” rating in a research note on Friday, October 17th. Needham & Company LLC reaffirmed a “buy” rating and issued a $175.00 target price on shares of Datadog in a research note on Thursday, August 14th. Finally, BTIG Research lifted their target price on shares of Datadog from $169.00 to $184.00 and gave the stock a “buy” rating in a research note on Wednesday, October 22nd. Twenty-six analysts have rated the stock with a Buy rating, six have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, Datadog has a consensus rating of “Moderate Buy” and an average target price of $166.10.

Insider Buying and Selling at Datadog

In other Datadog news, CTO Alexis Le-Quoc sold 55,352 shares of the business’s stock in a transaction on Tuesday, September 2nd. The shares were sold at an average price of $133.83, for a total transaction of $7,407,758.16. Following the transaction, the chief technology officer directly owned 438,885 shares of the company’s stock, valued at approximately $58,735,979.55. The trade was a 11.20% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Michael James Callahan sold 91,667 shares of the business’s stock in a transaction on Monday, October 6th. The shares were sold at an average price of $157.60, for a total transaction of $14,446,719.20. Following the transaction, the director directly owned 12,496 shares in the company, valued at approximately $1,969,369.60. The trade was a 88.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 1,512,446 shares of company stock worth $207,641,627. 8.70% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Motley Fool Asset Management LLC boosted its holdings in shares of Datadog by 149.0% during the 1st quarter. Motley Fool Asset Management LLC now owns 38,132 shares of the company’s stock valued at $3,783,000 after buying an additional 22,818 shares in the last quarter. LBP AM SA boosted its stake in Datadog by 40.2% in the 1st quarter. LBP AM SA now owns 419,805 shares of the company’s stock worth $41,649,000 after purchasing an additional 120,343 shares in the last quarter. Envestnet Asset Management Inc. boosted its stake in Datadog by 24.7% in the 1st quarter. Envestnet Asset Management Inc. now owns 787,344 shares of the company’s stock worth $78,112,000 after purchasing an additional 156,152 shares in the last quarter. BNP PARIBAS ASSET MANAGEMENT Holding S.A. boosted its stake in Datadog by 178.6% in the 1st quarter. BNP PARIBAS ASSET MANAGEMENT Holding S.A. now owns 91,046 shares of the company’s stock worth $9,032,000 after purchasing an additional 58,369 shares in the last quarter. Finally, Mizuho Markets Americas LLC bought a new position in Datadog in the 1st quarter worth about $15,526,000. 78.29% of the stock is owned by hedge funds and other institutional investors.

Datadog Trading Up 21.5%

The company has a market cap of $65.69 billion, a P/E ratio of 534.97, a PEG ratio of 61.63 and a beta of 1.20. The stock’s 50 day moving average is $147.78 and its 200-day moving average is $133.51. The company has a current ratio of 3.43, a quick ratio of 3.43 and a debt-to-equity ratio of 0.31.

About Datadog

Datadog, Inc operates an observability and security platform for cloud applications in North America and internationally. The company's products comprise infrastructure and application performance monitoring, log management, digital experience monitoring, continuous profiler, database monitoring, data streams and universal service monitoring, network monitoring, incident management, workflow automation, observability pipelines, cloud cost and cloud security management, application security management, cloud SIEM, sensitive data scanner, and CI visibility.