Datadog (NASDAQ:DDOG) Stock Price Down 7.9% – What’s Next?

Datadog, Inc. (NASDAQ:DDOG)’s stock price fell 7.9% during mid-day trading on Wednesday . The company traded as low as $245.63 and last traded at $247.99. 2,517,439 shares were traded during mid-day trading, a decline of 57% from the average session volume of 5,922,660 shares. The stock had previously closed at $269.13.

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on DDOG. Piper Sandler raised their target price on Datadog from $195.00 to $230.00 in a research report on Thursday, May 7th. UBS Group raised their target price on Datadog from $195.00 to $220.00 and gave the stock a “buy” rating in a research report on Friday, May 8th. Cantor Fitzgerald raised their target price on Datadog from $171.00 to $226.00 and gave the stock an “overweight” rating in a research report on Tuesday, May 26th. Daiwa Securities Group raised their target price on Datadog from $190.00 to $240.00 and gave the stock a “buy” rating in a research report on Wednesday, May 13th. Finally, Canadian Imperial Bank of Commerce reissued an “outperform” rating and issued a $250.00 target price on shares of Datadog in a research report on Friday, May 8th. One equities research analyst has rated the stock with a Strong Buy rating, forty have issued a Buy rating, one has issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, Datadog currently has an average rating of “Moderate Buy” and a consensus target price of $219.69.

Datadog Stock Performance

The company has a market capitalization of $88.26 billion, a PE ratio of 652.52, a PEG ratio of 29.71 and a beta of 1.56. 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 company has a 50-day moving average price of $157.16 and a two-hundred day moving average price of $143.23.

Datadog (NASDAQ:DDOG) last announced its quarterly earnings results on Thursday, May 7th. The company reported $0.60 earnings per share for the quarter, beating the consensus estimate of $0.51 by $0.09. The company had revenue of $1.01 billion during the quarter, compared to analysts’ expectations of $960.12 million. Datadog had a return on equity of 4.83% and a net margin of 3.69%.The firm’s quarterly revenue was up 32.1% compared to the same quarter last year. During the same period in the previous year, the business earned $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. Analysts predict that Datadog, Inc. will post 0.61 EPS for the current fiscal year.

Insider Activity

In related news, CTO Alexis Le-Quoc sold 53,912 shares of the business’s stock in a transaction dated Tuesday, March 10th. The stock was sold at an average price of $125.49, for a total transaction of $6,765,416.88. Following the completion of the transaction, the chief technology officer directly owned 437,257 shares in the company, valued at $54,871,380.93. The trade was a 10.98% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Olivier Pomel sold 127,141 shares of the business’s stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $199.84, for a total value of $25,407,857.44. Following the transaction, the chief executive officer owned 835,679 shares of the company’s stock, valued at approximately $167,002,091.36. The trade was a 13.21% 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 three months, insiders sold 848,198 shares of company stock worth $135,415,163. 6.48% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Datadog

Several hedge funds and other institutional investors have recently added to or reduced their stakes in DDOG. Brighton Jones LLC purchased a new position in Datadog during the fourth quarter worth about $209,000. Bison Wealth LLC purchased a new position in Datadog during the fourth quarter worth about $228,000. Empowered Funds LLC grew its position in Datadog by 7.0% during the first quarter. Empowered Funds LLC now owns 10,313 shares of the company’s stock worth $1,023,000 after buying an additional 672 shares in the last quarter. Geneos Wealth Management Inc. grew its position in Datadog by 17.6% during the first quarter. Geneos Wealth Management Inc. now owns 769 shares of the company’s stock worth $76,000 after buying an additional 115 shares in the last quarter. Finally, Sivia Capital Partners LLC purchased a new position in Datadog during the second quarter worth about $509,000. 78.29% of the stock is currently owned by hedge funds and other institutional investors.

Datadog Company Profile

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.