Datadog (NASDAQ:DDOG) Reaches New 12-Month High on Earnings Beat

Datadog, Inc. (NASDAQ:DDOG)’s share price reached a new 52-week high during mid-day trading on Thursday after the company announced better than expected quarterly earnings. The stock traded as high as $186.92 and last traded at $187.02, with a volume of 3514952 shares changing hands. The stock had previously closed at $154.98.

The company reported $0.55 earnings per share for the quarter, beating the consensus estimate of $0.45 by $0.10. The company had revenue of $885.65 million during the quarter, compared to analyst estimates of $852.77 million. Datadog had a net margin of 4.13% and a return on equity of 5.04%. The firm’s revenue for the quarter was up 28.4% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.46 earnings per share. Datadog has set its FY 2025 guidance at 2.000-2.020 EPS. Q4 2025 guidance at 0.54-0.56 EPS.

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on DDOG. Capital One Financial increased their target price on shares of Datadog from $149.00 to $179.00 in a research report on Thursday, October 16th. BMO Capital Markets increased their target price on shares of Datadog from $150.00 to $154.00 and gave the stock an “outperform” rating in a research report on Monday, September 29th. BTIG Research increased their target price on shares of Datadog from $169.00 to $184.00 and gave the stock a “buy” rating in a research report on Wednesday, October 22nd. Robert W. Baird set a $165.00 target price on shares of Datadog in a research report on Wednesday, October 29th. Finally, CIBC began coverage on shares of Datadog in a research report on Monday. They set a “neutral” rating and a $170.00 target price for the company. Twenty-six research analysts have rated the stock with a Buy rating, six have issued a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $166.10.

Insider Buying and Selling

In related news, Director Michael James Callahan sold 91,667 shares of the firm’s stock in a transaction that occurred on Monday, October 6th. The shares were sold at an average price of $157.60, for a total value of $14,446,719.20. Following the sale, the director directly owned 12,496 shares of the company’s stock, valued at $1,969,369.60. This trade represents a 88.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CEO Olivier Pomel sold 63,939 shares of the firm’s stock in a transaction that occurred on Thursday, October 9th. The shares were sold at an average price of $165.02, for a total transaction of $10,551,213.78. Following the completion of the sale, the chief executive officer directly owned 533,358 shares in the company, valued at $88,014,737.16. This represents a 10.70% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 1,512,446 shares of company stock valued at $207,641,627 in the last three months. Insiders own 8.70% of the company’s stock.

Institutional Investors Weigh In On Datadog

Institutional investors and hedge funds have recently bought and sold shares of the stock. OVERSEA CHINESE BANKING Corp Ltd raised its stake in Datadog by 887.0% in the first quarter. OVERSEA CHINESE BANKING Corp Ltd now owns 25,199 shares of the company’s stock valued at $25,000 after purchasing an additional 22,646 shares in the last quarter. Physician Wealth Advisors Inc. raised its stake in Datadog by 315.2% in the third quarter. Physician Wealth Advisors Inc. now owns 191 shares of the company’s stock valued at $27,000 after purchasing an additional 145 shares in the last quarter. Westside Investment Management Inc. raised its stake in Datadog by 74.3% in the third quarter. Westside Investment Management Inc. now owns 176 shares of the company’s stock valued at $27,000 after purchasing an additional 75 shares in the last quarter. Tripletail Wealth Management LLC purchased a new stake in Datadog in the third quarter valued at approximately $28,000. Finally, Hazlett Burt & Watson Inc. purchased a new stake in Datadog in the third quarter valued at approximately $28,000. 78.29% of the stock is owned by hedge funds and other institutional investors.

Datadog Price Performance

The business’s 50 day moving average is $147.78 and its two-hundred day moving average is $133.51. The firm has a market capitalization of $65.69 billion, a PE ratio of 534.97, a P/E/G ratio of 61.63 and a beta of 1.20. The company has a debt-to-equity ratio of 0.31, a current ratio of 3.43 and a quick ratio of 3.43.

Datadog Company Profile

Datadog, Inc operates an observability and security platform for cloud applications in North America and internationally. The company's products comprise infrastructure and application performance monitoring, log management, digital experience monitoring, continuous profiler, database monitoring, data streams and universal service monitoring, network monitoring, incident management, workflow automation, observability pipelines, cloud cost and cloud security management, application security management, cloud SIEM, sensitive data scanner, and CI visibility.