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

Datadog, Inc. (NASDAQ:DDOG) saw an uptick in trading volume on Tuesday following a better than expected earnings announcement. 2,679,707 shares traded hands 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 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.42 by $0.04. The business had revenue of $761.55 million during the quarter, compared to the consensus estimate of $741.73 million. Datadog had a return on equity of 8.28% and a net margin of 6.85%. The business’s revenue for the quarter was up 24.6% on a year-over-year basis. During the same period last year, the business posted $0.44 earnings per share.

Wall Street Analysts Forecast Growth

A number of analysts recently commented on the stock. Needham & Company LLC restated a “buy” rating and set a $160.00 price target on shares of Datadog in a research note on Tuesday, March 4th. Macquarie restated an “outperform” rating and set a $200.00 target price on shares of Datadog in a research report on Tuesday, February 11th. Citigroup reduced their price target on Datadog from $170.00 to $165.00 and set a “buy” rating for the company in a research report on Friday, February 14th. Wells Fargo & Company lowered Datadog from an “overweight” rating to an “equal weight” rating and decreased their price objective for the company from $152.00 to $140.00 in a research note on Thursday, February 13th. Finally, Morgan Stanley cut their target price on Datadog from $143.00 to $115.00 and set an “equal weight” rating for the company in a research note on Wednesday, April 16th. Seven research analysts have rated the stock with a hold rating, twenty-two have given a buy rating and two have assigned a strong buy rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $150.44.

Insider Buying and Selling

In related news, Director Amit Agarwal sold 10,167 shares of the business’s stock in a transaction that occurred 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 completion of the sale, the director now owns 82,324 shares in the company, valued at $9,538,058.64. The trade was a 10.99 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Olivier Pomel sold 107,365 shares of the company’s stock in a transaction that occurred on Monday, April 7th. The stock was sold at an average price of $87.33, for a total value of $9,376,185.45. Following the completion of the sale, the chief executive officer now directly owns 563,598 shares of the company’s stock, valued at approximately $49,219,013.34. This represents a 16.00 % decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 385,456 shares of company stock worth $39,018,715. Corporate insiders own 11.78% of the company’s stock.

Institutional Investors Weigh In On Datadog

Institutional investors have recently made changes to their positions in the business. Retirement Wealth Solutions LLC purchased a new stake in Datadog during the fourth quarter valued at about $30,000. Putney Financial Group LLC bought a new position in Datadog during the 4th quarter worth approximately $32,000. Avior Wealth Management LLC increased its stake in Datadog by 55.9% in the 4th quarter. Avior Wealth Management LLC now owns 226 shares of the company’s stock worth $32,000 after purchasing an additional 81 shares during the period. Elequin Capital LP bought a new stake in Datadog in the fourth quarter valued at approximately $34,000. Finally, Coppell Advisory Solutions LLC boosted its stake in shares of Datadog by 178.8% during the fourth quarter. Coppell Advisory Solutions LLC now owns 276 shares of the company’s stock valued at $40,000 after purchasing an additional 177 shares during the period. Hedge funds and other institutional investors own 78.29% of the company’s stock.

Datadog Price Performance

The firm’s 50 day moving average is $100.64 and its 200 day moving average is $126.18. The company has a market capitalization of $36.35 billion, a PE ratio of 207.96, a P/E/G ratio of 44.03 and a beta of 1.12.

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.