DA Davidson Reaffirms Buy Rating for Datadog (NASDAQ:DDOG)

Datadog (NASDAQ:DDOG)‘s stock had its “buy” rating reiterated by stock analysts at DA Davidson in a report issued on Monday,Benzinga reports. They currently have a $225.00 target price on the stock. DA Davidson’s price objective points to a potential upside of 88.03% from the stock’s previous close.

DDOG has been the topic of several other reports. Stifel Nicolaus set a $160.00 price target on shares of Datadog and gave the stock a “buy” rating in a research note on Thursday, January 22nd. Scotiabank cut their price target on shares of Datadog from $217.00 to $180.00 and set a “sector outperform” rating for the company in a research report on Tuesday, January 27th. Daiwa Capital Markets started coverage on Datadog in a report on Tuesday, January 27th. They issued a “buy” rating and a $190.00 price objective on the stock. Weiss Ratings reissued a “sell (d+)” rating on shares of Datadog in a research note on Wednesday, January 21st. Finally, Citigroup dropped their target price on Datadog from $200.00 to $175.00 and set a “buy” rating for the company in a report on Friday, January 16th. Thirty-five investment analysts have rated the stock with a Buy rating, four have given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, Datadog has an average rating of “Moderate Buy” and an average target price of $189.36.

Datadog Stock Down 7.3%

DDOG stock opened at $119.66 on Monday. The company has a current ratio of 3.66, a quick ratio of 3.66 and a debt-to-equity ratio of 0.29. Datadog has a 1-year low of $81.63 and a 1-year high of $201.69. The stock has a market cap of $41.96 billion, a price-to-earnings ratio of 386.00, a price-to-earnings-growth ratio of 23.02 and a beta of 1.27. The company’s 50 day moving average is $138.14 and its 200 day moving average is $145.13.

Datadog (NASDAQ:DDOG) last issued its quarterly earnings results on Thursday, November 6th. The company reported $0.55 EPS for the quarter, topping analysts’ consensus estimates of $0.45 by $0.10. The firm had revenue of $885.65 million for the quarter, compared to analyst estimates of $852.77 million. Datadog had a net margin of 3.32% and a return on equity of 4.14%. The business’s revenue for the quarter was up 28.4% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.46 EPS. Datadog has set its FY 2025 guidance at 2.000-2.020 EPS and its Q4 2025 guidance at 0.54-0.56 EPS. Sell-side analysts predict that Datadog will post 0.34 EPS for the current fiscal year.

Insider Buying and Selling at Datadog

In other Datadog news, CEO Olivier Pomel sold 100,754 shares of the company’s stock in a transaction on Monday, November 17th. The shares were sold at an average price of $181.18, for a total value of $18,254,609.72. Following the completion of the transaction, the chief executive officer directly owned 533,358 shares in the company, valued at approximately $96,633,802.44. This represents a 15.89% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CTO Alexis Le-Quoc sold 53,912 shares of the firm’s stock in a transaction dated Tuesday, November 11th. The stock was sold at an average price of $197.99, for a total transaction of $10,674,036.88. Following the completion of the sale, the chief technology officer directly owned 395,661 shares of the company’s stock, valued at approximately $78,336,921.39. This represents a 11.99% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 1,041,445 shares of company stock valued at $186,887,631. 8.70% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the company. Rothschild Investment LLC grew its stake in Datadog by 126.6% in the third quarter. Rothschild Investment LLC now owns 179 shares of the company’s stock worth $25,000 after purchasing an additional 100 shares during the period. Physician Wealth Advisors Inc. grew its holdings in Datadog by 315.2% in the third quarter. Physician Wealth Advisors Inc. now owns 191 shares of the company’s stock worth $27,000 after purchasing an additional 145 shares during the period. Westside Investment Management Inc. lifted its holdings in shares of Datadog by 74.3% during 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 during the last quarter. JPL Wealth Management LLC purchased a new stake in shares of Datadog in the 3rd quarter worth approximately $27,000. Finally, Tripletail Wealth Management LLC bought a new stake in Datadog in the third quarter worth $28,000. Institutional investors own 78.29% of the company’s stock.

Key Datadog News

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: DA Davidson reaffirmed a “buy” and set a $225 price target, signaling strong upside from current levels. DA Davidson Buy Rating
• Positive Sentiment: Market commentary highlights Datadog as a top software pick as AI momentum builds, supporting the longer-term growth narrative around AI-enabled observability. MSN: DDOG Top Pick
• Positive Sentiment: Wall Street coverage cited by The Motley Fool highlights bullish analyst forecasts that expect material upside over a 12‑month horizon as Datadog gains share in observability and AI for IT operations. Fool: Analysts Bullish on DDOG
• Neutral Sentiment: Zacks previews Datadog’s upcoming earnings and notes Wall Street expects earnings growth, making the upcoming report a key near-term catalyst. Zacks: Earnings Preview
• Neutral Sentiment: Analyst notes and market-interest pieces (Globe & Mail, Zacks) keep Datadog in focus for investors; heightened attention can amplify moves around news/events. Globe & Mail: Analyst Insights
• Neutral Sentiment: Reported short-interest figures appear to be data/noise (shows 0 shares / NaN changes), so there’s no clear evidence of a rising short-squeeze dynamic driving the move. (Item flagged in multiple short-interest reports.)
• Negative Sentiment: Zacks ran a piece explaining why Datadog fell more than the broader market, which likely contributed to negative investor sentiment today. Zacks: Why DDOG Fell
• Negative Sentiment: Several firms trimmed price targets this week (Evercore ISI cut its target from $215 to $175; Rosenblatt cut to $185), signaling more cautious near-term expectations despite positive ratings. Evercore / Benzinga Coverage Rosenblatt PT Cut
• Negative Sentiment: Insider selling: Datadog’s CTO sold roughly $4.57M of stock, which can be read negatively by market participants when combined with price-target trims and near-term uncertainty. Insider Selling Report

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.