Datadog (NASDAQ:DDOG) Stock Price Expected to Rise, BMO Capital Markets Analyst Says

Datadog (NASDAQ:DDOG) had its target price upped by investment analysts at BMO Capital Markets from $220.00 to $260.00 in a note issued to investors on Friday,MarketScreener reports. BMO Capital Markets’ price objective points to a potential upside of 11.70% from the company’s current price.

A number of other research analysts also recently issued reports on the company. Bank of America raised their price target on Datadog from $260.00 to $280.00 and gave the stock a “buy” rating in a research note on Monday. Guggenheim raised their target price on shares of Datadog from $175.00 to $225.00 and gave the stock a “buy” rating in a research report on Thursday, May 7th. Citigroup lifted their target price on Datadog from $175.00 to $218.00 and gave the company a “buy” rating in a research note on Friday, May 8th. Morgan Stanley upped their price target on Datadog from $180.00 to $225.00 and gave the stock an “overweight” rating in a research note on Friday, May 8th. Finally, Capital One Financial lowered their price objective on shares of Datadog from $157.00 to $135.00 and set an “overweight” rating on the stock in a research report on Thursday, April 16th. One equities research analyst has rated the stock with a Strong Buy rating, forty have given a Buy rating, one has issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $231.64.

Datadog Stock Down 0.6%

Shares of NASDAQ:DDOG traded down $1.46 on Friday, hitting $232.78. 762,502 shares of the company’s stock were exchanged, compared to its average volume of 5,909,692. Datadog has a 1-year low of $98.01 and a 1-year high of $278.70. The company has a market capitalization of $82.86 billion, a PE ratio of 613.17, a P/E/G ratio of 24.37 and a beta of 1.56. The company has a debt-to-equity ratio of 0.25, a quick ratio of 3.40 and a current ratio of 3.40. The firm’s 50-day moving average is $176.06 and its 200 day moving average is $146.80.

Datadog (NASDAQ:DDOG) last announced its quarterly earnings results on Thursday, May 7th. The company reported $0.60 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.51 by $0.09. The firm had revenue of $1.01 billion during the quarter, compared to the consensus estimate of $960.12 million. Datadog had a return on equity of 4.83% and a net margin of 3.69%.The firm’s quarterly revenue was up 32.1% compared to the same quarter last year. During the same period in the prior year, the company posted $0.46 earnings per share. Datadog has set its FY 2026 guidance at 2.360-2.440 EPS and its Q2 2026 guidance at 0.570-0.590 EPS. Sell-side analysts predict that Datadog will post 0.61 EPS for the current year.

Insider Buying and Selling at Datadog

In related news, Director Matthew Jacobson sold 52,832 shares of Datadog stock in a transaction that occurred on Friday, May 8th. The stock was sold at an average price of $189.28, for a total transaction of $10,000,040.96. Following the completion of the transaction, the director directly owned 622,726 shares in the company, valued at $117,869,577.28. The trade was a 7.82% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Dev Ittycheria sold 120,000 shares of the company’s stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $248.78, for a total value of $29,853,600.00. Following the completion of the sale, the director directly owned 39,235 shares in the company, valued at approximately $9,760,883.30. The trade was a 75.36% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 1,272,556 shares of company stock worth $252,615,825. 6.48% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Rothschild Investment LLC raised its position in shares of Datadog by 126.6% in the third quarter. Rothschild Investment LLC now owns 179 shares of the company’s stock valued at $25,000 after buying an additional 100 shares during the last quarter. JPL Wealth Management LLC acquired a new position in Datadog in the 3rd quarter valued at $27,000. CoreCap Advisors LLC lifted its stake in shares of Datadog by 1,461.5% during the 4th quarter. CoreCap Advisors LLC now owns 203 shares of the company’s stock worth $28,000 after purchasing an additional 190 shares during the period. Flagship Harbor Advisors LLC acquired a new stake in shares of Datadog during the fourth quarter worth $31,000. Finally, NBC Securities Inc. boosted its holdings in shares of Datadog by 242.6% during the fourth quarter. NBC Securities Inc. now owns 233 shares of the company’s stock worth $32,000 after purchasing an additional 165 shares during the last quarter. 78.29% of the stock is currently owned by hedge funds and other institutional investors.

Datadog News Summary

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Analysts are turning more constructive on Datadog after its AI and observability expansion, with multiple firms raising targets and maintaining bullish ratings. That supports the stock’s recent strength and suggests more upside if AI adoption continues. Datadog (DDOG) Receives a Buy from Wedbush
• Positive Sentiment: Coverage is emphasizing Datadog as a beneficiary of the AI boom, with cybersecurity demand increasing as AI systems create more security and monitoring needs across cloud environments. The AI Boom Has a Hidden Winner—And It’s Not Nvidia (DDOG)
• Positive Sentiment: Datadog’s new AI-powered observability and security tools, including major Bits AI upgrades, AI Guard, and Bring Your Own Cloud, could deepen customer usage and support future revenue growth. Datadog AI Push Tests Valuation As New Tools Target Deeper Adoption
• Neutral Sentiment: Some recent reports note that DDOG is trading at a premium valuation, so while growth expectations remain high, the stock may be sensitive to any slowdown in AI-driven momentum or analyst revisions. How The Datadog (DDOG) Story Is Shifting With AI Demand And Valuation Debates
• Negative Sentiment: Heavy insider selling could create an overhang, as CEO Olivier Pomel and CFO David Obstler both sold large blocks under pre-arranged trading plans. SEC filing for Olivier Pomel sale
• Negative Sentiment: Insider sales may weigh on sentiment near term, even though they were executed under 10b5-1 plans and do not necessarily signal weakening fundamentals. SEC filing for David Obstler sale

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.