Datadog (NASDAQ:DDOG) Cut to “Hold” at Wall Street Zen

Wall Street Zen downgraded shares of Datadog (NASDAQ:DDOG) from a buy rating to a hold rating in a research report released on Saturday morning.

DDOG has been the subject of a number of other research reports. UBS Group upped their target price on shares of Datadog from $189.00 to $225.00 and gave the stock a “buy” rating in a report on Friday, November 7th. Wolfe Research dropped their price objective on shares of Datadog from $240.00 to $185.00 and set an “outperform” rating for the company in a research note on Monday, December 15th. BMO Capital Markets increased their price objective on shares of Datadog from $154.00 to $215.00 and gave the company an “outperform” rating in a report on Friday, November 7th. Barclays lowered their target price on Datadog from $215.00 to $195.00 and set an “overweight” rating on the stock in a report on Monday, January 12th. Finally, Jefferies Financial Group dropped their price target on Datadog from $220.00 to $180.00 and set a “buy” rating for the company in a research report on Monday, January 5th. Thirty-four equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, Datadog has an average rating of “Moderate Buy” and a consensus price target of $195.84.

Datadog Stock Down 1.5%

DDOG opened at $119.02 on Friday. The company has a market cap of $41.74 billion, a PE ratio of 383.94, a price-to-earnings-growth ratio of 21.50 and a beta of 1.26. Datadog has a twelve month low of $81.63 and a twelve month high of $201.69. The company has a 50-day moving average price of $148.22 and a 200 day moving average price of $146.23. The company has a quick ratio of 3.66, a current ratio of 3.66 and a debt-to-equity ratio of 0.29.

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

Insiders Place Their Bets

In other news, CEO Olivier Pomel sold 100,754 shares of the firm’s stock in a transaction on Monday, November 17th. The stock was sold at an average price of $181.18, for a total transaction of $18,254,609.72. Following the completion of the transaction, the chief executive officer directly owned 533,358 shares in the company, valued at $96,633,802.44. This trade represents a 15.89% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, CTO Alexis Le-Quoc sold 53,912 shares of the business’s stock in a transaction on Tuesday, November 11th. The shares were sold at an average price of $197.99, for a total value of $10,674,036.88. Following the completion of the sale, the chief technology officer owned 395,661 shares in the company, valued at $78,336,921.39. This represents a 11.99% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 1,082,904 shares of company stock worth $194,318,545 over the last ninety days. Corporate insiders own 8.70% of the company’s stock.

Institutional Trading of Datadog

Hedge funds have recently made changes to their positions in the business. Vanguard Group Inc. grew its holdings in shares of Datadog by 30.3% in 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 grew its stake in shares of Datadog by 106.8% in the third quarter. State Street Corp now owns 13,732,777 shares of the company’s stock worth $1,955,547,000 after acquiring an additional 7,091,075 shares in the last quarter. Norges Bank purchased a new stake in shares of Datadog during the second quarter worth $347,728,000. Invesco Ltd. increased its position in shares of Datadog by 119.2% during the third quarter. Invesco Ltd. now owns 4,075,721 shares of the company’s stock worth $580,383,000 after acquiring an additional 2,216,402 shares during the period. Finally, Dragoneer Investment Group LLC raised its stake in shares of Datadog by 729.5% in the second quarter. Dragoneer Investment Group LLC now owns 2,254,563 shares of the company’s stock valued at $302,855,000 after acquiring an additional 1,982,763 shares in the last quarter. Institutional investors and hedge funds own 78.29% of the company’s stock.

About Datadog

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.