Key Points
- Datadog director Michael James Callahan sold 12,500 shares for approximately $3.59 million at an average price of $287.47 under a pre-arranged Rule 10b5-1 trading plan, reducing his direct holdings by about 45% to 14,996 shares.
- Datadog reported strong quarterly results, with revenue rising 35.6% year over year to $1.12 billion and adjusted EPS of $0.65, beating analysts’ estimates. Management also raised its full-year 2026 outlook to approximately $4.5 billion in revenue and $2.50-$2.54 in EPS.
- Despite the earnings beat, the stock faced pressure amid concerns about slowing bookings, potential lower usage from a major AI customer and its elevated valuation, including a trailing P/E ratio above 600.
Datadog, Inc. (NASDAQ:DDOG - Get Free Report) Director Michael James Callahan sold 12,500 shares of the firm's stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $287.47, for a total transaction of $3,593,375.00. Following the sale, the director directly owned 14,996 shares in the company, valued at $4,310,900.12. The trade was a 45.46% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Michael James Callahan also recently made the following trade(s):
- On Wednesday, July 1st, Michael James Callahan sold 12,500 shares of Datadog stock. The shares were sold at an average price of $267.47, for a total transaction of $3,343,375.00.
- On Monday, June 29th, Michael James Callahan sold 12,500 shares of Datadog stock. The shares were sold at an average price of $247.47, for a total transaction of $3,093,375.00.
- On Friday, June 12th, Michael James Callahan sold 112,500 shares of Datadog stock. The stock was sold at an average price of $231.60, for a total transaction of $26,055,000.00.
Datadog Stock Down 19.0%
DDOG stock opened at $229.29 on Friday. Datadog, Inc. has a one year low of $98.01 and a one year high of $292.72. The company has a debt-to-equity ratio of 0.25, a quick ratio of 3.40 and a current ratio of 3.40. The firm's fifty day moving average is $249.56 and its 200 day moving average is $177.45. The firm has a market cap of $81.62 billion, a PE ratio of 603.41, a P/E/G ratio of 28.69 and a beta of 1.54.
Datadog (NASDAQ:DDOG - Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The company reported $0.65 earnings per share for the quarter, topping analysts' consensus estimates of $0.58 by $0.07. Datadog had a net margin of 3.69% and a return on equity of 4.83%. The business had revenue of $1.12 billion during the quarter, compared to the consensus estimate of $1.08 billion. During the same quarter in the prior year, the firm posted $0.46 earnings per share. The company's revenue was up 35.6% compared to the same quarter last year. Datadog has set its Q3 2026 guidance at 0.630-0.650 EPS and its FY 2026 guidance at 2.500-2.540 EPS. On average, research analysts forecast that Datadog, Inc. will post 0.64 EPS for the current year.
Key Datadog News
Here are the key news stories impacting Datadog this week:
- Positive Sentiment: Datadog reported second-quarter revenue of $1.12 billion, up 35.6% year over year and above the $1.08 billion consensus estimate. Adjusted earnings of $0.65 per share also exceeded expectations of $0.58, compared with $0.46 a year earlier. Datadog Q2 Earnings and Revenues Surpass Estimates
- Positive Sentiment: Management raised its full-year 2026 outlook, calling for approximately $4.5 billion in revenue and $2.50-$2.54 in EPS, both above Wall Street expectations. Third-quarter EPS guidance of $0.63-$0.65 was also ahead of the $0.52 consensus, although the revenue range was broadly in line with estimates. Datadog Beats Estimates and Raises FY2026 Outlook
- Neutral Sentiment: Director Michael James Callahan sold 12,500 shares worth about $3.6 million under a pre-arranged Rule 10b5-1 trading plan. While the sale reduced his direct holdings by roughly 45%, the planned nature of the transaction limits its significance as a current signal about the business. Datadog Director Stock Sale Filing
- Negative Sentiment: Investors were concerned that bookings growth is decelerating and that a major artificial-intelligence customer may reduce usage, potentially pressuring future consumption-based revenue. Datadog’s outlook was viewed as insufficient for a stock that had recently reached record highs and was priced for very strong growth. Datadog Says Lower Usage From Major AI Customer Could Dent Growth
- Negative Sentiment: The selloff reflects profit-taking and a valuation reset rather than a disappointing quarter: Datadog’s very high earnings multiple left little room for slower bookings, softer revenue expectations, or customer-usage risks. Datadog Stock Falls as High Bar and Cooling Bookings Offset Strong Quarter
Analyst Upgrades and Downgrades
A number of brokerages have issued reports on DDOG. Guggenheim increased their price target on Datadog from $225.00 to $300.00 and gave the stock a "buy" rating in a research report on Wednesday, July 22nd. New Street Research set a $260.00 price objective on Datadog in a research report on Thursday, June 11th. BMO Capital Markets reaffirmed an "outperform" rating and set a $260.00 target price on shares of Datadog in a research note on Friday, June 12th. Morgan Stanley increased their target price on Datadog from $225.00 to $300.00 and gave the company an "overweight" rating in a research report on Tuesday, July 28th. Finally, Bank of America lifted their price target on shares of Datadog from $260.00 to $280.00 and gave the company a "buy" rating in a research note on Monday, June 8th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-eight have assigned a Buy rating, three have issued a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $272.48.
View Our Latest Stock Report on Datadog
Institutional Investors Weigh In On Datadog
Several large investors have recently bought and sold shares of DDOG. JPL Wealth Management LLC purchased a new position in shares of Datadog in the third quarter valued at approximately $27,000. Flagship Harbor Advisors LLC purchased a new stake in shares of Datadog during the fourth quarter worth approximately $31,000. NBC Securities Inc. increased its position in shares of Datadog by 242.6% during the fourth quarter. NBC Securities Inc. now owns 233 shares of the company's stock worth $32,000 after purchasing an additional 165 shares in the last quarter. Rothschild Investment LLC raised its stake in Datadog by 52.5% in the 4th quarter. Rothschild Investment LLC now owns 273 shares of the company's stock valued at $37,000 after purchasing an additional 94 shares during the last quarter. Finally, Annis Gardner Whiting Capital Advisors LLC raised its stake in Datadog by 341.7% in the 1st quarter. Annis Gardner Whiting Capital Advisors LLC now owns 318 shares of the company's stock valued at $38,000 after purchasing an additional 246 shares during the last quarter. 78.29% of the stock is currently owned by hedge funds and other institutional investors.
About Datadog
(
Get Free Report)
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.
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