Datadog’s (DDOG) Buy Rating Reiterated at DA Davidson

DA Davidson restated their buy rating on shares of Datadog (NASDAQ:DDOG) in a research report report published on Wednesday morning,Benzinga reports. They currently have a $225.00 price objective on the stock.

DDOG has been the subject of several other reports. BMO Capital Markets set a $165.00 price objective on Datadog in a research note on Wednesday. Guggenheim set a $105.00 price target on Datadog in a report on Thursday, November 6th. Needham & Company LLC decreased their target price on shares of Datadog from $220.00 to $155.00 and set a “buy” rating on the stock in a research report on Tuesday. JPMorgan Chase & Co. lifted their price objective on shares of Datadog from $140.00 to $200.00 and gave the stock an “overweight” rating in a research note on Friday, November 7th. Finally, Sanford C. Bernstein restated an “outperform” rating on shares of Datadog in a research report on Wednesday, January 21st. Thirty-seven equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $179.50.

Datadog Trading Down 0.7%

Shares of NASDAQ:DDOG opened at $125.20 on Wednesday. The company has a debt-to-equity ratio of 0.26, a current ratio of 3.38 and a quick ratio of 3.66. The company has a market cap of $43.90 billion, a P/E ratio of 403.87, a PEG ratio of 22.88 and a beta of 1.27. The stock’s fifty day moving average price is $132.23 and its 200-day moving average price is $143.64. Datadog has a 1 year low of $81.63 and a 1 year high of $201.69.

Datadog (NASDAQ:DDOG) last announced its quarterly earnings results on Tuesday, February 10th. The company reported $0.59 EPS for the quarter, topping analysts’ consensus estimates of $0.55 by $0.04. The firm had revenue of $953.19 million during the quarter, compared to analyst estimates of $916.53 million. Datadog had a net margin of 3.14% and a return on equity of 4.14%. The business’s revenue for the quarter was up 29.2% on a year-over-year basis. During the same period in the previous year, the business posted $0.49 earnings per share. Datadog has set its FY 2026 guidance at 2.080-2.160 EPS and its Q1 2026 guidance at 0.490-0.510 EPS. Sell-side analysts expect that Datadog will post 0.34 earnings per share for the current year.

Insider Buying and Selling at Datadog

In other news, CTO Alexis Le-Quoc sold 53,912 shares of the firm’s stock in a transaction on Monday, December 8th. The stock was sold at an average price of $154.05, for a total transaction of $8,305,143.60. Following the transaction, the chief technology officer owned 295,448 shares in the company, valued at approximately $45,513,764.40. This trade represents a 15.43% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, CEO Olivier Pomel sold 100,754 shares of Datadog stock in a transaction dated 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 sale, the chief executive officer owned 533,358 shares of the company’s stock, valued at $96,633,802.44. The trade was a 15.89% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 582,023 shares of company stock worth $92,269,698 over the last 90 days. 8.70% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in DDOG. Vanguard Group Inc. raised its holdings in shares of Datadog by 30.3% in the 3rd quarter. Vanguard Group Inc. now owns 41,902,227 shares of the company’s stock valued at $5,966,877,000 after purchasing an additional 9,748,738 shares in the last quarter. State Street Corp increased its holdings in Datadog by 106.8% during the third quarter. State Street Corp now owns 13,732,777 shares of the company’s stock valued at $1,955,547,000 after buying an additional 7,091,075 shares during the period. Norges Bank bought a new position in Datadog in the fourth quarter worth approximately $469,461,000. Jennison Associates LLC lifted its holdings in Datadog by 43.7% during the fourth quarter. Jennison Associates LLC now owns 7,623,993 shares of the company’s stock worth $1,036,787,000 after buying an additional 2,316,994 shares during the period. Finally, Invesco Ltd. boosted its position in Datadog by 119.2% during the 3rd quarter. Invesco Ltd. now owns 4,075,721 shares of the company’s stock valued at $580,383,000 after acquiring an additional 2,216,402 shares in the last quarter. 78.29% of the stock is currently owned by institutional investors.

More Datadog News

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Q4 beat and bullish market reaction — Datadog reported a revenue and EPS beat and gave upbeat AI-related guidance that pushed the shares higher after earnings, supporting the thesis that Datadog can monetize AI-monitoring/security demand. Why Datadog (DDOG) Is Up 8.4% After Strong Q4 2025 Earnings And 2026 Revenue Guidance
• Positive Sentiment: Bullish broker commentary remains — Some sell-side analysts (e.g., Rosenblatt) remain constructive despite a cautious tone from management, reinforcing that several institutional investors still view DDOG as an AI/observability play. Datadog’s (DDOG) Cautious Outlook Doesn’t Shake Rosenblatt’s Bullish View
• Neutral Sentiment: Short-interest reporting is noisy and shows 0 shares (likely a reporting artifact), producing an effectively zero days-to-cover reading — not meaningful market pressure today.
• Neutral Sentiment: Investor commentary that AI isn’t the core problem — analysis arguing that AI fears are overstated and Datadog remains well-positioned may moderate panic selling but doesn’t immediately alter fundamentals. Datadog: AI Isn’t The Main Problem
• Negative Sentiment: Insider selling — CTO Alexis Le-Quoc sold ~43k shares (~$5.5M), trimming his stake ~8% on Feb 11; insider disposals can increase near-term selling pressure or signal liquidity needs. SEC Form 4 — Alexis Le-Quoc Sale
• Negative Sentiment: Multiple price-target downgrades — Needham, BTIG and Wolfe trimmed targets (to $155, $170 and $160 respectively), signalling reduced near-term expectations despite the beat; these downgrades can weigh on sentiment and limit upside. Needham Cuts Datadog Price Target BTIG Cuts Datadog Price Target Wolfe Research Cuts Datadog Price Target
• Negative Sentiment: Analyst concerns on slowing growth, costs and valuation — Several analyst pieces highlight that despite the beat, longer-term growth appears to be slowing, costs are rising and valuation remains rich, which can cap multiple expansion. 3 Reasons to Stay Away From Datadog Stock Despite Q4 Earnings Beat

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.