Datadog (NASDAQ:DDOG) Given “Buy” Rating at Needham & Company LLC

Needham & Company LLC restated their buy rating on shares of Datadog (NASDAQ:DDOG) in a research report released on Wednesday morning,Benzinga reports. They currently have a $300.00 target price on the stock.

Several other research firms have also issued reports on DDOG. Benchmark reaffirmed a “buy” rating on shares of Datadog in a report on Tuesday, July 28th. Sanford C. Bernstein upgraded Datadog from a “market perform” rating to an “outperform” rating and lifted their price target for the stock from $237.00 to $350.00 in a report on Monday, October 19th. Rosenblatt Securities boosted their price objective on Datadog from $220.00 to $305.00 and gave the stock a “buy” rating in a research report on Tuesday, August 4th. Barclays boosted their price objective on Datadog from $290.00 to $300.00 and gave the stock an “overweight” rating in a research report on Tuesday, October 13th. Finally, UBS Group upped their price objective on Datadog from $280.00 to $320.00 and gave the company a “buy” rating in a research note on Tuesday, October 27th. Three equities research analysts have rated the stock with a Strong Buy rating, forty have assigned a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $284.52.

Datadog Stock Performance

Shares of DDOG stock opened at $188.72 on Wednesday. The company has a debt-to-equity ratio of 0.23, a current ratio of 3.20 and a quick ratio of 3.20. The firm has a 50-day moving average of $250.09 and a 200-day moving average of $199.43. Datadog has a one year low of $98.01 and a one year high of $300.68. The company has a market cap of $67.77 billion, a P/E ratio of 361.51, a P/E/G ratio of 21.50 and a beta of 1.50.

Datadog (NASDAQ:DDOG) last released its quarterly earnings results on Wednesday, November 4th. The company reported $0.81 earnings per share for the quarter, topping the consensus estimate of $0.64 by $0.17. Datadog had a net margin of 4.48% and a return on equity of 5.67%. The business had revenue of $1.20 billion for the quarter, compared to analysts’ expectations of $1.15 billion. During the same period in the previous year, the company earned $0.55 earnings per share. The firm’s revenue for the quarter was up 35.2% compared to the same quarter last year. Equities research analysts forecast that Datadog will post 0.70 EPS for the current fiscal year.

Insider Activity

In other news, insider Yanbing Li sold 12,700 shares of the stock in a transaction dated Friday, September 11th. The shares were sold at an average price of $221.26, for a total value of $2,810,002.00. Following the sale, the insider directly owned 250,446 shares of the company’s stock, valued at approximately $55,413,681.96. This represents a 4.83% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CRO Sean Walters sold 11,710 shares of the stock in a transaction that occurred on Friday, September 11th. The stock was sold at an average price of $221.04, for a total transaction of $2,588,378.40. Following the completion of the sale, the executive owned 233,135 shares in the company, valued at $51,532,160.40. This represents a 4.78% 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. Over the last 90 days, insiders sold 745,293 shares of company stock valued at $175,536,548. 6.48% of the stock is currently owned by insiders.

Institutional Trading of Datadog

Hedge funds have recently made changes to their positions in the stock. Cornerstone Financial Management LLC raised its position in Datadog by 54.9% during the 2nd quarter. Cornerstone Financial Management LLC now owns 127 shares of the company’s stock valued at $33,000 after purchasing an additional 45 shares during the last quarter. QTR Family Wealth LLC raised its stake in Datadog by 3.2% during the third quarter. QTR Family Wealth LLC now owns 1,499 shares of the company’s stock valued at $411,000 after buying an additional 47 shares during the last quarter. United Asset Strategies Inc. raised its stake in shares of Datadog by 1.1% in the third quarter. United Asset Strategies Inc. now owns 5,997 shares of the company’s stock worth $1,642,000 after purchasing an additional 68 shares during the last quarter. State of Wyoming raised its stake in Datadog by 4.1% during the 1st quarter. State of Wyoming now owns 1,946 shares of the company’s stock valued at $230,000 after buying an additional 76 shares during the last quarter. Finally, Roberts Wealth Advisors LLC grew its position in shares of Datadog by 0.6% during the 3rd quarter. Roberts Wealth Advisors LLC now owns 15,720 shares of the company’s stock valued at $4,305,000 after acquiring an additional 91 shares during the period. 78.29% of the stock is owned by institutional investors.

Datadog News Roundup

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Q3 revenue rose 35.2% year over year to $1.20 billion, above expectations of $1.15 billion, while EPS of $0.81 topped the $0.64 consensus. Datadog also raised its full-year outlook for the third consecutive quarter. Datadog announces third-quarter 2026 results
• Positive Sentiment: Customer and product trends offered further support: customers generating at least $100,000 in annual recurring revenue increased to about 4,860 from 4,060 a year earlier, alongside broader multiproduct adoption and expanding AI workloads. Datadog also launched Scout 1.0, its specialized model for Bits Investigation. Q3 earnings call highlights
• Neutral Sentiment: Some analysts remain constructive: Needham reaffirmed a Buy rating with a $300 target, while BTIG retained Buy but lowered its target to $260. Needham rating
• Negative Sentiment: Q4 revenue guidance of about $1.20 billion implies little sequential growth from Q3 and was viewed as cautious, even though it was near analyst estimates. That near-term deceleration appears to have outweighed the earnings beat and raised full-year outlook. Shares fall after in-line Q4 revenue outlook
• Negative Sentiment: Management said lower usage by a major customer—identified in coverage as Datadog’s largest customer and an AI customer—is weighing on growth. Concerns about that customer’s future usage, moderating growth, and Datadog’s premium valuation add to the selling pressure. Lower usage from major AI customer weighs on growth

Datadog Company Profile

Datadog, Inc is a technology company that provides a cloud-based monitoring and security platform for applications, infrastructure and other technology environments. Its platform helps organizations collect, analyze and visualize data from servers, databases, containers, cloud services, applications and user interactions in a unified environment.

Datadog’s products include infrastructure monitoring, application performance monitoring, log management, real user monitoring, synthetic monitoring, network performance monitoring, cloud security, software delivery tools and incident-management capabilities.