Datadog (NASDAQ:DDOG) Trading 4.4% Higher – Should You Buy?

Datadog, Inc. (NASDAQ:DDOG) shot up 4.4% during mid-day trading on Wednesday . The company traded as high as $234.14 and last traded at $232.8240. Approximately 664,677 shares traded hands during trading, a decline of 88% from the average daily volume of 5,541,143 shares. The stock had previously closed at $222.99.

Wall Street Analyst Weigh In

Several research analysts recently weighed in on DDOG shares. Robert W. Baird set a $300.00 target price on Datadog in a research report on Friday, August 7th. Rosenblatt Securities raised their target price on Datadog from $220.00 to $305.00 and gave the company a “buy” rating in a research note on Tuesday, August 4th. Arete Research lifted their price target on shares of Datadog from $260.00 to $340.00 and gave the stock a “buy” rating in a research note on Tuesday, June 23rd. Morgan Stanley boosted their price objective on Datadog from $225.00 to $300.00 and gave the company an “overweight” rating in a report on Tuesday, July 28th. Finally, Jefferies Financial Group set a $260.00 price target on Datadog in a report on Thursday, August 6th. One analyst has rated the stock with a Strong Buy rating, thirty-eight have given a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Datadog currently has an average rating of “Moderate Buy” and a consensus price target of $276.32.

Datadog Stock Performance

The company has a debt-to-equity ratio of 0.23, a quick ratio of 3.20 and a current ratio of 3.20. The stock has a 50 day moving average of $249.50 and a 200 day moving average of $187.85. The stock has a market capitalization of $82.47 billion, a P/E ratio of 468.77, a P/E/G ratio of 21.99 and a beta of 1.54.

Datadog (NASDAQ:DDOG) last announced its quarterly earnings results on Thursday, August 6th. The company reported $0.65 earnings per share (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 company had revenue of $1.12 billion during the quarter, compared to the consensus estimate of $1.08 billion. During the same quarter in the previous year, the company posted $0.46 earnings per share. The company’s revenue for the quarter 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. Equities analysts predict that Datadog, Inc. will post 0.7 EPS for the current year.

Insider Activity at Datadog

In other news, Director Amit Agarwal sold 20,000 shares of the business’s stock in a transaction that occurred on Thursday, August 13th. The stock was sold at an average price of $249.32, for a total transaction of $4,986,400.00. Following the completion of the transaction, the director directly owned 1,640 shares in the company, valued at approximately $408,884.80. The trade was a 92.42% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Alexis Le-Quoc sold 53,912 shares of the stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $253.36, for a total value of $13,659,144.32. Following the completion of the transaction, the chief technology officer directly owned 509,805 shares of the company’s stock, valued at $129,164,194.80. This trade represents a 9.56% 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 90 days, insiders have sold 1,427,490 shares of company stock valued at $355,565,477. Company insiders own 6.48% of the company’s stock.

Institutional Investors Weigh In On Datadog

Several institutional investors have recently bought and sold shares of DDOG. JPL Wealth Management LLC acquired a new stake in shares of Datadog in the 3rd quarter worth approximately $27,000. EMC Capital Management acquired a new stake in Datadog in the second quarter worth approximately $28,000. NBC Securities Inc. boosted its stake in Datadog by 242.6% during the 4th quarter. NBC Securities Inc. now owns 233 shares of the company’s stock valued at $32,000 after purchasing an additional 165 shares in the last quarter. Rothschild Investment LLC increased its position in shares of Datadog by 52.5% during the 4th quarter. Rothschild Investment LLC now owns 273 shares of the company’s stock valued at $37,000 after purchasing an additional 94 shares during the period. Finally, Annis Gardner Whiting Capital Advisors LLC raised its stake in shares of Datadog by 341.7% in the 1st quarter. Annis Gardner Whiting Capital Advisors LLC now owns 318 shares of the company’s stock worth $38,000 after buying an additional 246 shares in the last quarter. Institutional investors and hedge funds 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.