Datadog (NASDAQ:DDOG) Sees Strong Trading Volume Following Better-Than-Expected Earnings

Shares of Datadog, Inc. (NASDAQ:DDOG) saw unusually-strong trading volume on Tuesday following a better than expected earnings announcement. Approximately 2,679,707 shares were traded during trading, a decline of 39% from the previous session’s volume of 4,377,490 shares.The stock last traded at $103.14 and had previously closed at $105.70.

The company reported $0.46 EPS for the quarter, topping analysts’ consensus estimates of $0.42 by $0.04. The company had revenue of $761.55 million during the quarter, compared to analysts’ expectations of $741.73 million. Datadog had a return on equity of 8.28% and a net margin of 6.85%. Datadog’s revenue was up 24.6% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.44 EPS.

Wall Street Analysts Forecast Growth

DDOG has been the topic of several research reports. Wolfe Research lowered shares of Datadog from an “outperform” rating to a “peer perform” rating in a report on Tuesday, February 18th. Citigroup decreased their target price on shares of Datadog from $170.00 to $165.00 and set a “buy” rating on the stock in a research note on Friday, February 14th. UBS Group dropped their price target on Datadog from $164.00 to $120.00 and set a “buy” rating for the company in a research note on Tuesday, April 15th. Barclays boosted their price objective on Datadog from $125.00 to $128.00 and gave the stock an “overweight” rating in a research report on Tuesday. Finally, Guggenheim reiterated a “neutral” rating on shares of Datadog in a research report on Wednesday, January 22nd. Seven research analysts have rated the stock with a hold rating, twenty-two have issued a buy rating and two have issued a strong buy rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $150.44.

Insiders Place Their Bets

In related news, Director Amit Agarwal sold 10,167 shares of the stock in a transaction on Monday, March 3rd. The stock was sold at an average price of $115.86, for a total value of $1,177,948.62. Following the transaction, the director now directly owns 82,324 shares in the company, valued at $9,538,058.64. This trade represents a 10.99 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Olivier Pomel sold 107,365 shares of Datadog stock in a transaction on Friday, March 7th. The shares were sold at an average price of $109.56, for a total transaction of $11,762,909.40. Following the completion of the sale, the chief executive officer now directly owns 435,793 shares of the company’s stock, valued at approximately $47,745,481.08. The trade was a 19.77 % decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 385,456 shares of company stock worth $39,018,715. Corporate insiders own 11.78% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of DDOG. Groupama Asset Managment increased its stake in Datadog by 407.6% in the 4th quarter. Groupama Asset Managment now owns 6,600,000 shares of the company’s stock valued at $943,074,000 after buying an additional 5,299,688 shares during the last quarter. Janus Henderson Group PLC increased its position in shares of Datadog by 17,477.2% during the fourth quarter. Janus Henderson Group PLC now owns 4,016,558 shares of the company’s stock valued at $573,923,000 after acquiring an additional 3,993,707 shares during the last quarter. Norges Bank bought a new stake in Datadog during the fourth quarter worth $462,910,000. Jennison Associates LLC boosted its position in Datadog by 47.9% in the fourth quarter. Jennison Associates LLC now owns 9,278,648 shares of the company’s stock worth $1,325,826,000 after purchasing an additional 3,005,300 shares during the last quarter. Finally, Brown Advisory Inc. boosted its position in Datadog by 2,804.2% in the fourth quarter. Brown Advisory Inc. now owns 2,749,174 shares of the company’s stock worth $392,830,000 after purchasing an additional 2,654,512 shares during the last quarter. Institutional investors own 78.29% of the company’s stock.

Datadog Stock Performance

The stock has a market cap of $36.35 billion, a P/E ratio of 207.96, a P/E/G ratio of 44.03 and a beta of 1.12. The business has a 50 day simple moving average of $100.64 and a 200-day simple moving average of $126.18.

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.