Datadog Sees Unusually High Options Volume (NASDAQ:DDOG)

Datadog, Inc. (NASDAQ:DDOG) saw some unusual options trading activity on Friday. Stock traders purchased 28,329 put options on the company. This represents an increase of approximately 22% compared to the typical daily volume of 23,162 put options.

Key Stories Impacting Datadog

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Guggenheim upgraded Datadog to a “Buy” and set a $175 price target, citing AI-driven growth in telemetry/data volumes and forecasting stronger growth than the Street — a clear positive catalyst for longer-term upside. Guggenheim upgrade article
• Positive Sentiment: Product/news support: Datadog launched new tools and continues to be cited by firms (Wells Fargo) as a favored SaaS name amid rising AI spend — helps underpin fundamentals and revenue growth expectations. Product launch article
• Neutral Sentiment: Short-interest report in the feed is malformed (reports 0 shares / NaN change) and provides no actionable signal; ignore until a reliable short-interest update is available.
• Negative Sentiment: Insider sales: CTO Alexis Le‑Quoc and director Amit Agarwal recently sold large blocks of shares (multi-million dollar transactions). Both trades were via pre‑arranged Rule 10b5‑1 plans — which reduces the informational sting but still raises near‑term selling pressure and investor attention. Alexis Le‑Quoc sale Amit Agarwal sale
• Negative Sentiment: Options activity: unusually large put buying (about 28k puts, ~22% above typical daily put volume) signals increased short-term hedging or bearish positioning from traders, which can amplify downward moves.
• Negative Sentiment: Price momentum / market context: recent headlines and data show the stock has pulled back in recent weeks and fell amid a market uptick — short-term momentum is weak even as long-term fundamentals (revenue beat & guidance) remain intact. Price decline article

Insider Activity at Datadog

In related news, CEO Olivier Pomel sold 68,922 shares of the business’s stock in a transaction on Monday, March 2nd. The shares were sold at an average price of $110.54, for a total transaction of $7,618,637.88. Following the transaction, the chief executive officer owned 704,821 shares in the company, valued at $77,910,913.34. The trade was a 8.91% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CTO Alexis Le-Quoc sold 53,912 shares of the business’s stock in a transaction on Tuesday, March 10th. The shares were sold at an average price of $125.49, for a total transaction of $6,765,416.88. Following the transaction, the chief technology officer owned 437,257 shares in the company, valued at $54,871,380.93. The trade was a 10.98% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 489,306 shares of company stock worth $59,852,594 over the last quarter. 6.67% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Datadog

Several institutional investors have recently added to or reduced their stakes in DDOG. Elevation Point Wealth Partners LLC lifted its holdings in shares of Datadog by 3.3% in the third quarter. Elevation Point Wealth Partners LLC now owns 1,697 shares of the company’s stock worth $242,000 after buying an additional 55 shares in the last quarter. Chicago Partners Investment Group LLC raised its stake in Datadog by 1.6% in the fourth quarter. Chicago Partners Investment Group LLC now owns 4,778 shares of the company’s stock valued at $622,000 after purchasing an additional 73 shares in the last quarter. Vivaldi Capital Management LP raised its stake in Datadog by 2.8% in the third quarter. Vivaldi Capital Management LP now owns 2,689 shares of the company’s stock valued at $383,000 after purchasing an additional 74 shares in the last quarter. Westside Investment Management Inc. raised its stake in Datadog by 74.3% in 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 in the last quarter. Finally, Nilsine Partners LLC raised its stake in Datadog by 2.4% in the third quarter. Nilsine Partners LLC now owns 3,396 shares of the company’s stock valued at $484,000 after purchasing an additional 78 shares in the last quarter. Institutional investors own 78.29% of the company’s stock.

Datadog Stock Performance

NASDAQ DDOG opened at $105.37 on Friday. Datadog has a 1 year low of $87.69 and a 1 year high of $201.69. The company has a debt-to-equity ratio of 0.26, a current ratio of 3.38 and a quick ratio of 3.38. The firm has a market cap of $37.15 billion, a price-to-earnings ratio of 339.90, a PEG ratio of 29.95 and a beta of 1.29. The company has a fifty day moving average price of $119.79 and a 200-day moving average price of $139.47.

Datadog (NASDAQ:DDOG) last posted its earnings results on Tuesday, February 10th. The company reported $0.59 earnings per share (EPS) for the quarter, topping the consensus estimate 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 was up 29.2% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.49 EPS. Datadog has set its FY 2026 guidance at 2.080-2.160 EPS and its Q1 2026 guidance at 0.490-0.510 EPS. As a group, equities research analysts predict that Datadog will post 0.34 EPS for the current fiscal year.

Analysts Set New Price Targets

A number of research firms recently issued reports on DDOG. The Goldman Sachs Group started coverage on shares of Datadog in a research report on Monday, January 12th. They set a “sell” rating and a $113.00 target price on the stock. Cantor Fitzgerald lowered their price objective on shares of Datadog from $220.00 to $150.00 and set an “overweight” rating on the stock in a report on Friday, February 6th. UBS Group set a $195.00 price objective on shares of Datadog in a report on Monday, February 9th. Stifel Nicolaus set a $160.00 price objective on shares of Datadog and gave the stock a “buy” rating in a report on Thursday, January 22nd. Finally, Capital One Financial upped their price objective on shares of Datadog from $156.00 to $157.00 and gave the stock an “overweight” rating in a report on Wednesday, February 11th. Thirty-eight analysts have rated the stock with a Buy rating, three have given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, Datadog currently has an average rating of “Moderate Buy” and an average target price of $181.41.

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.