Datadog (NASDAQ:DDOG) Stock Price Down 8.7% – Here’s What Happened

Shares of Datadog, Inc. (NASDAQ:DDOG) traded down 8.7% during mid-day trading on Friday . The stock traded as low as $113.44 and last traded at $113.4580. 1,102,490 shares were traded during trading, a decline of 81% from the average session volume of 5,853,266 shares. The stock had previously closed at $124.30.

Analysts Set New Price Targets

Several brokerages have weighed in on DDOG. DA Davidson reaffirmed a “buy” rating and set a $225.00 price objective on shares of Datadog in a research note on Tuesday, February 17th. UBS Group set a $195.00 target price on Datadog in a report on Monday, February 9th. Jefferies Financial Group decreased their price target on Datadog from $180.00 to $160.00 and set a “buy” rating on the stock in a research report on Friday, February 6th. Capital One Financial raised their price target on Datadog from $156.00 to $157.00 and gave the company an “overweight” rating in a report on Wednesday, February 11th. Finally, Sanford C. Bernstein reiterated an “outperform” rating on shares of Datadog in a research report on Wednesday, January 21st. Thirty-six equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $179.62.

Datadog Trading Down 7.9%

The company has a market capitalization of $40.36 billion, a price-to-earnings ratio of 369.29, a P/E/G ratio of 31.47 and a beta of 1.31. The company has a debt-to-equity ratio of 0.26, a quick ratio of 3.38 and a current ratio of 3.38. The business’s 50-day simple moving average is $122.53 and its 200-day simple moving average is $141.00.

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

Insider Buying and Selling at Datadog

In other news, CTO Alexis Le-Quoc sold 32,418 shares of the firm’s stock in a transaction on Monday, March 23rd. The stock was sold at an average price of $127.75, for a total value of $4,141,399.50. Following the transaction, the chief technology officer directly owned 437,257 shares in the company, valued at $55,859,581.75. This trade represents a 6.90% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Olivier Pomel sold 42,443 shares of Datadog stock in a transaction on Monday, March 16th. The stock was sold at an average price of $126.80, for a total value of $5,381,772.40. Following the sale, the chief executive officer directly owned 704,821 shares of the company’s stock, valued at approximately $89,371,302.80. This trade represents a 5.68% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 492,530 shares of company stock worth $61,476,744 over the last quarter. 6.67% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Datadog

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Rothschild Investment LLC grew its holdings in Datadog by 126.6% during the third quarter. Rothschild Investment LLC now owns 179 shares of the company’s stock valued at $25,000 after purchasing an additional 100 shares during the period. Physician Wealth Advisors Inc. increased its holdings in shares of 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 acquiring an additional 145 shares in the last quarter. Westside Investment Management Inc. raised its position in shares of Datadog by 74.3% during the third quarter. Westside Investment Management Inc. now owns 176 shares of the company’s stock worth $27,000 after purchasing an additional 75 shares during the period. JPL Wealth Management LLC acquired a new stake in shares of Datadog during the third quarter worth about $27,000. Finally, Tripletail Wealth Management LLC bought a new position in shares of Datadog during the 3rd quarter valued at about $28,000. Institutional investors own 78.29% of the company’s stock.

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.