Rosenblatt Securities Has Lowered Expectations for Datadog (NASDAQ:DDOG) Stock Price

Datadog (NASDAQ:DDOG) had its price target cut by Rosenblatt Securities from $305.00 to $285.00 in a research report issued to clients and investors on Thursday, Benzinga reports. The firm presently has a “buy” rating on the stock. Rosenblatt Securities‘s price objective would suggest a potential upside of 59.18% from the company’s current price.

A number of other research analysts have also recently weighed in on the company. Wells Fargo & Company reduced their target price on Datadog from $325.00 to $300.00 and set an “overweight” rating on the stock in a report on Thursday. Weiss Ratings upgraded Datadog from a “hold (c)” rating to a “hold (c+)” rating in a research note on Thursday, October 8th. Robert W. Baird set a $300.00 price objective on Datadog in a report on Friday, August 7th. Guggenheim reaffirmed a “buy” rating on shares of Datadog in a research note on Wednesday. Finally, Royal Bank Of Canada dropped their target price on shares of Datadog from $320.00 to $270.00 and set an “outperform” rating for the company in a research report on Thursday. Two research analysts have rated the stock with a Strong Buy rating, thirty-eight have issued a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $278.43.

Datadog Trading Up 2.5%

Shares of NASDAQ:DDOG traded up $4.44 during midday trading on Thursday, reaching $179.04. The company’s stock had a trading volume of 5,937,232 shares, compared to its average volume of 3,026,833. The business has a 50 day moving average price of $247.75 and a 200 day moving average price of $200.01. The company has a quick ratio of 3.20, a current ratio of 3.20 and a debt-to-equity ratio of 0.23. Datadog has a 1 year low of $98.01 and a 1 year high of $300.68. The firm has a market cap of $64.29 billion, a price-to-earnings ratio of 252.17, a price-to-earnings-growth ratio of 21.09 and a beta of 1.50.

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

Insider Transactions at Datadog

In other news, insider Yanbing Li sold 12,700 shares of the firm’s 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 transaction, the insider directly owned 250,446 shares in the company, valued at approximately $55,413,681.96. This trade represents a 4.83% decrease in their position. The transaction 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, CFO David Obstler sold 10,000 shares of the stock in a transaction dated Monday, September 21st. The stock was sold at an average price of $241.25, for a total transaction of $2,412,500.00. Following the sale, the chief financial officer owned 368,067 shares in the company, valued at approximately $88,796,163.75. This trade represents a 2.65% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 745,293 shares of company stock valued at $175,536,548 over the last 90 days. Corporate insiders own 6.48% of the company’s stock.

Institutional Trading of Datadog

Several hedge funds have recently bought and sold shares of DDOG. Integrated Wealth Concepts LLC grew its holdings in Datadog by 1,691.4% in the 2nd quarter. Integrated Wealth Concepts LLC now owns 186,216 shares of the company’s stock worth $48,483,000 after buying an additional 175,821 shares in the last quarter. Congress Asset Management Co. grew its stake in shares of Datadog by 3.0% in the third quarter. Congress Asset Management Co. now owns 268,825 shares of the company’s stock worth $71,350,000 after purchasing an additional 7,802 shares in the last quarter. MassMutual Private Wealth & Trust FSB grew its stake in shares of Datadog by 7,711.3% in the third quarter. MassMutual Private Wealth & Trust FSB now owns 94,048 shares of the company’s stock worth $25,755,000 after purchasing an additional 92,844 shares in the last quarter. Cooper Financial Group increased its holdings in shares of Datadog by 188.1% during the third quarter. Cooper Financial Group now owns 20,934 shares of the company’s stock valued at $5,733,000 after purchasing an additional 13,669 shares during the period. Finally, Saudi Central Bank increased its holdings in shares of Datadog by 91.6% during the second quarter. Saudi Central Bank now owns 21,867 shares of the company’s stock valued at $5,693,000 after purchasing an additional 10,455 shares during the period. 78.29% of the stock is currently owned by institutional investors.

Datadog News Roundup

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Datadog beat Q3 estimates, reporting $1.20 billion in revenue, up 35.2% year over year, and adjusted EPS of $0.81 versus a $0.64 consensus. Infrastructure Monitoring annual recurring revenue also topped $2 billion, with broad-based platform use and AI adoption supporting demand. Article: Datadog’s Infrastructure Monitoring Tops $2B ARR in Q3, Revenues Beat
• Neutral Sentiment: Some analysts still see upside: several firms retained Buy or Overweight ratings even while trimming price targets. One valuation analysis also argues the share price may be supportable by future cash generation, though that depends on expectations for growth and AI demand. Article: Datadog Stock Could Still Be Undervalued As AI Hopes Swing
• Negative Sentiment: Investors remain wary of the outlook: Q4 guidance and customer-related factors signal a potential slowdown from Q3’s growth, while AI-customer discounts and lower-priced renewals may temper revenue growth. The forecast also relies on a minimum commitment from Datadog’s largest customer, adding uncertainty. Article: DDOG Q3 Earnings Call Highlights AI Growth and Customer Renewals
• Negative Sentiment: Multiple firms cut their price targets after the results—including Rosenblatt, TD Cowen, Wells Fargo, Citigroup and Wedbush. Though ratings remained favorable in several reports, the reductions suggest analysts are tempering near-term expectations. Article: Rosenblatt Lowers Datadog Price Target Article: Wedbush Sets New Datadog Price Target

Datadog Company Profile

Datadog, Inc provides a cloud-based monitoring and security platform that helps organizations observe and manage their technology environments. Its tools collect and analyze data from applications, infrastructure, networks, and other systems to help teams detect issues and improve performance.

The company’s products include infrastructure monitoring, application performance monitoring, log management, digital experience monitoring, database and network monitoring, and security tools. Datadog also offers capabilities for incident management and cloud security.

Founded in 2010 by Olivier Pomel and Alexis Lê-Quôc, Datadog serves customers around the world.