Datadog (NASDAQ:DDOG) Shares Gap Up – Here’s Why

Datadog, Inc. (NASDAQ:DDOG) shares gapped up before the market opened on Thursday . The stock had previously closed at $209.23, but opened at $220.00. Datadog shares last traded at $214.0450, with a volume of 892,000 shares trading hands.

Analysts Set New Price Targets

Several research firms recently commented on DDOG. Stifel Nicolaus set a $305.00 price objective on Datadog in a research report on Thursday, May 7th. Craig Hallum assumed coverage on Datadog in a research report on Monday, June 15th. They issued a “buy” rating for the company. Bank of America boosted their target price on Datadog from $260.00 to $280.00 and gave the stock a “buy” rating in a research report on Monday, June 8th. Evercore raised their price target on shares of Datadog from $225.00 to $265.00 and gave the company an “outperform” rating in a report on Wednesday, June 10th. Finally, Citigroup raised their price target on shares of Datadog from $300.00 to $305.00 and gave the company a “buy” rating in a report on Friday, August 7th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-eight have issued a Buy rating, five have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $276.32.

Datadog Stock Up 2.7%

The company has a 50-day moving average of $250.31 and a two-hundred day moving average of $192.51. 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 company has a market capitalization of $77.18 billion, a PE ratio of 437.83, a P/E/G ratio of 21.92 and a beta of 1.49.

Datadog (NASDAQ:DDOG) last released its earnings results on Thursday, August 6th. The company reported $0.65 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.58 by $0.07. The company had revenue of $1.12 billion during the quarter, compared to analyst estimates of $1.08 billion. Datadog had a net margin of 4.48% and a return on equity of 5.67%. The firm’s quarterly revenue was up 35.6% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.46 EPS. Datadog has set its Q3 2026 guidance at 0.630-0.650 EPS and its FY 2026 guidance at 2.500-2.540 EPS. Sell-side analysts anticipate that Datadog, Inc. will post 0.7 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, CTO Alexis Le-Quoc sold 43,224 shares of the business’s stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $228.63, for a total value of $9,882,303.12. Following the sale, the chief technology officer directly owned 509,805 shares in the company, valued at approximately $116,556,717.15. The trade was a 7.82% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Michael James Callahan sold 12,500 shares of the company’s stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $287.47, for a total value of $3,593,375.00. Following the sale, the director directly owned 14,996 shares in the company, valued at $4,310,900.12. This trade represents a 45.46% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 1,152,255 shares of company stock worth $283,013,115. 6.48% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Datadog

Several hedge funds have recently added to or reduced their stakes in the company. California State Teachers Retirement System grew its stake in shares of Datadog by 27,002.8% during the second quarter. California State Teachers Retirement System now owns 121,189,509 shares of the company’s stock valued at $31,552,901,000 after buying an additional 120,742,361 shares during the last quarter. Price T Rowe Associates Inc. MD lifted its stake in shares of Datadog by 7.1% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 14,423,814 shares of the company’s stock worth $1,961,496,000 after acquiring an additional 956,993 shares during the last quarter. State Street Corp lifted its stake in shares of Datadog by 106.8% during the 3rd 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 during the last quarter. Geode Capital Management LLC boosted its holdings in Datadog by 2.2% during the 4th quarter. Geode Capital Management LLC now owns 9,056,086 shares of the company’s stock valued at $1,227,184,000 after acquiring an additional 197,816 shares during the period. Finally, Janus Henderson Group PLC boosted its holdings in Datadog by 22.8% during the 1st quarter. Janus Henderson Group PLC now owns 7,749,569 shares of the company’s stock valued at $905,570,000 after acquiring an additional 1,439,082 shares during the period. 78.29% of the stock is currently owned by institutional investors.

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.