Datadog (NASDAQ:DDOG) Stock Rating Upgraded by Zacks Research

Datadog (NASDAQ:DDOG) was upgraded by Zacks Research from a “hold” rating to a “strong-buy” rating in a research note issued to investors on Tuesday,Zacks.com reports.

Several other equities analysts also recently weighed in on the company. Rosenblatt Securities lifted their target price on Datadog from $178.00 to $220.00 and gave the company a “buy” rating in a research report on Friday, May 8th. Evercore raised their price objective on Datadog from $225.00 to $265.00 and gave the stock an “outperform” rating in a research note on Wednesday, June 10th. Daiwa Securities Group lifted their price objective on Datadog from $190.00 to $240.00 and gave the company a “buy” rating in a research report on Wednesday, May 13th. TD Cowen boosted their price objective on Datadog from $235.00 to $260.00 and gave the company a “buy” rating in a research note on Thursday, June 11th. Finally, Wall Street Zen raised shares of Datadog from a “hold” rating to a “buy” rating in a report on Saturday, May 16th. Two research analysts have rated the stock with a Strong Buy rating, forty have given a Buy rating, two have assigned a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, Datadog has an average rating of “Moderate Buy” and an average price target of $244.73.

Datadog Price Performance

Shares of DDOG opened at $261.09 on Tuesday. The company has a market capitalization of $92.94 billion, a P/E ratio of 687.10, a price-to-earnings-growth ratio of 26.11 and a beta of 1.54. The company has a quick ratio of 3.40, a current ratio of 3.40 and a debt-to-equity ratio of 0.25. The firm has a 50 day moving average of $221.33 and a 200 day moving average of $158.62. Datadog has a twelve month low of $98.01 and a twelve month high of $278.70.

Datadog (NASDAQ:DDOG) last issued its earnings results on Thursday, May 7th. The company reported $0.60 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.51 by $0.09. The company had revenue of $1.01 billion for the quarter, compared to analysts’ expectations of $960.12 million. Datadog had a net margin of 3.69% and a return on equity of 4.83%. The firm’s quarterly revenue was up 32.1% on a year-over-year basis. During the same quarter last 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. As a group, equities research analysts anticipate that Datadog will post 0.64 earnings per share for the current fiscal year.

Insider Activity

In other Datadog news, CTO Alexis Le-Quoc sold 53,912 shares of the firm’s stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $271.05, for a total value of $14,612,847.60. Following the completion of the sale, the chief technology officer owned 531,311 shares of the company’s stock, valued at $144,011,846.55. This trade represents a 9.21% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 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 transaction, the director directly owned 39,235 shares in the company, valued at approximately $9,760,883.30. This represents a 75.36% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 1,405,621 shares of company stock worth $309,070,507. Company insiders own 6.48% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the stock. State Street Corp grew its stake in 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 purchasing an additional 7,091,075 shares in the last quarter. Norges Bank purchased a new stake in shares of Datadog in the 4th quarter worth $469,461,000. Jennison Associates LLC lifted its holdings in shares of Datadog by 43.7% in the 4th quarter. Jennison Associates LLC now owns 7,623,993 shares of the company’s stock worth $1,036,787,000 after buying an additional 2,316,994 shares during the period. Invesco Ltd. grew its position in shares of Datadog by 119.2% during the 3rd quarter. Invesco Ltd. now owns 4,075,721 shares of the company’s stock worth $580,383,000 after buying an additional 2,216,402 shares in the last quarter. Finally, Employees Provident Fund Board bought a new position in shares of Datadog during the 4th quarter worth $251,582,000. Hedge funds and other institutional investors own 78.29% of the company’s stock.

Key Datadog News

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Benchmark raised its price target on Datadog to a Street-high $330 from $260 and kept a Buy rating, citing strong execution and customer momentum in its product-led growth business. Benchmark lifts price target on Datadog
• Positive Sentiment: Datadog’s acquisition of Adaptive ML and its push into AI-focused observability continue to support the bull case, reinforcing expectations for longer-term growth. Datadog AI growth and Adaptive ML acquisition
• Positive Sentiment: Several articles still describe DDOG as a strong momentum stock, which can attract traders and support near-term demand. Datadog momentum stock article
• Neutral Sentiment: Director Michael James Callahan sold 12,500 shares in a pre-arranged Rule 10b5-1 transaction. The sale may add to insider-selling chatter, but it does not necessarily signal a fundamental problem. SEC filing on insider sale
• Neutral Sentiment: Another director sale by Amit Agarwal was disclosed, also under a 10b5-1 plan, keeping insider activity in focus but not necessarily changing the outlook. SEC filing on insider sale
• Negative Sentiment: Bernstein downgraded Datadog to Market Perform, arguing that growth may slow and that fourth-quarter revenue growth could miss elevated expectations. Bernstein downgrade on Datadog
• Negative Sentiment: That downgrade also raised concerns that Datadog’s AI growth story may already be priced in, limiting upside if near-term fundamentals do not accelerate. Bernstein caution on Datadog AI growth

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.