Datadog (NASDAQ:DDOG) Shares Gap Down After Analyst Downgrade

Datadog, Inc. (NASDAQ:DDOG) gapped down before the market opened on Thursday after Rosenblatt Securities lowered their price target on the stock from $200.00 to $185.00. The stock had previously closed at $140.56, but opened at $134.37. Rosenblatt Securities currently has a buy rating on the stock. Datadog shares last traded at $129.0150, with a volume of 2,650,781 shares.

Several other equities research analysts have also issued reports on the stock. Macquarie increased their target price on shares of Datadog from $175.00 to $220.00 and gave the stock an “outperform” rating in a research note on Friday, November 7th. Mizuho reduced their price target on Datadog from $200.00 to $170.00 and set an “outperform” rating for the company in a report on Wednesday, January 21st. Guggenheim set a $105.00 price target on Datadog in a research report on Thursday, November 6th. Robert W. Baird raised their price objective on Datadog from $165.00 to $220.00 and gave the company an “outperform” rating in a report on Friday, November 7th. Finally, Jefferies Financial Group reduced their target price on Datadog from $220.00 to $180.00 and set a “buy” rating for the company in a research note on Monday, January 5th. Thirty-five equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $190.38.

Insider Transactions at Datadog

In other Datadog news, insider Yanbing Li sold 6,715 shares of the firm’s stock in a transaction on Tuesday, December 2nd. The stock was sold at an average price of $158.60, for a total value of $1,064,999.00. Following the transaction, the insider owned 199,394 shares in the company, valued at approximately $31,623,888.40. This trade represents a 3.26% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director Shardul Shah sold 7,916 shares of the company’s stock in a transaction on Tuesday, January 13th. The stock was sold at an average price of $124.89, for a total transaction of $988,629.24. Following the sale, the director directly owned 340,701 shares of the company’s stock, valued at $42,550,147.89. The trade was a 2.27% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 1,104,127 shares of company stock valued at $197,161,211. Insiders own 8.70% of the company’s stock.

Key Headlines Impacting Datadog

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Bernstein reaffirmed an Outperform rating and a $180 price target, arguing Datadog prefers organic growth over large acquisitions (which reduces M&A risk and keeps focus on core SaaS expansion). This endorsement from a major shop supports investor confidence. Datadog (DDOG) Prefers Organic Growth Over Large Acquisitions, Says Bernstein
• Positive Sentiment: Customer win: THE ICONIC chose Datadog to boost platform reliability, a tangible proof point for recurring revenue/expansion potential and enterprise adoption. Such logos help sales momentum and retention narratives. THE ICONIC boosts platform reliability with Datadog
• Neutral Sentiment: Analyst consensus remains modestly positive — databases show a “Moderate Buy” consensus, keeping general sentiment tilted toward accumulation but not unanimous conviction. Datadog Receives Consensus Rating of “Moderate Buy”
• Neutral Sentiment: Coverage pieces and strategy discussion (including notes about Datadog’s evolving AI platform) are highlighting potential product-led upside, but these are thematic and longer‑term drivers rather than immediate catalysts. Are Bullish DDOG Notes Revealing a Deeper Shift in Datadog’s AI Platform Strategy?
• Negative Sentiment: Insider selling: CTO Alexis Le‑Quoc sold 32,418 shares (~$4.57M) and trimmed his holding ~9.7%. Insider sales can spook investors even though the exec retains a large stake. SEC Form 4 — Alexis Le‑Quoc
• Negative Sentiment: Price‑target cuts: Rosenblatt trimmed its PT from $200 to $185 (still a buy) and BMO cut from $215 to $170 — these downgrades reduce near‑term upside expectations and can pressure momentum. Rosenblatt PT cut BMO PT cut
• Negative Sentiment: Scotiabank published a pessimistic forecast for DDOG, adding a naysayer view that could weigh on sentiment if echoed by other shops. Scotiabank Issues Pessimistic Forecast for Datadog

Institutional Trading of Datadog

Several large investors have recently bought and sold shares of DDOG. Brighton Jones LLC acquired a new position in shares of Datadog during the 4th quarter worth approximately $209,000. Bison Wealth LLC purchased a new position in Datadog during the fourth quarter worth approximately $228,000. Empowered Funds LLC boosted its stake 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 during the last quarter. Geneos Wealth Management Inc. boosted its stake 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 during the last quarter. Finally, Sivia Capital Partners LLC purchased a new stake in Datadog in the 2nd quarter valued at $509,000. Hedge funds and other institutional investors own 78.29% of the company’s stock.

Datadog Stock Up 0.9%

The company has a debt-to-equity ratio of 0.29, a quick ratio of 3.66 and a current ratio of 3.66. The business has a 50 day simple moving average of $139.51 and a 200-day simple moving average of $145.34. The firm has a market capitalization of $45.35 billion, a price-to-earnings ratio of 417.16, a P/E/G ratio of 22.87 and a beta of 1.26.

Datadog (NASDAQ:DDOG) last announced its quarterly earnings results on Thursday, November 6th. The company reported $0.55 earnings per share for the quarter, beating the consensus estimate of $0.45 by $0.10. Datadog had a net margin of 3.32% and a return on equity of 4.14%. The firm had revenue of $885.65 million for the quarter, compared to analysts’ expectations of $852.77 million. During the same quarter in the previous year, the company posted $0.46 EPS. The company’s revenue was up 28.4% compared to the same quarter last year. Datadog has set its FY 2025 guidance at 2.000-2.020 EPS and its Q4 2025 guidance at 0.54-0.56 EPS. On average, equities analysts expect that Datadog, Inc. will post 0.34 EPS for the current year.

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.