Datadog (NASDAQ:DDOG) Shares Gap Down After Earnings Miss

Shares of Datadog, Inc. (NASDAQ:DDOG) gapped down prior to trading on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $148.09, but opened at $136.55. Datadog shares last traded at $132.25, with a volume of 6,484,784 shares changing hands.

The company reported $0.13 EPS for the quarter, missing analysts’ consensus estimates of $0.44 by ($0.31). Datadog had a net margin of 7.58% and a return on equity of 9.41%.

Wall Street Analyst Weigh In

A number of research analysts have recently issued reports on the company. TD Cowen reissued a “buy” rating and issued a $165.00 price objective on shares of Datadog in a research note on Tuesday, November 19th. Robert W. Baird increased their price target on Datadog from $140.00 to $150.00 and gave the stock an “outperform” rating in a report on Friday, November 8th. Macquarie reiterated an “outperform” rating and issued a $200.00 price objective on shares of Datadog in a research note on Tuesday. Scotiabank dropped their target price on shares of Datadog from $135.00 to $133.00 and set a “sector outperform” rating on the stock in a research report on Friday, November 8th. Finally, Monness Crespi & Hardt upgraded shares of Datadog from a “neutral” rating to a “buy” rating and set a $155.00 price target for the company in a report on Thursday, November 7th. One analyst has rated the stock with a sell rating, six have given a hold rating, twenty-four have issued a buy rating and two have assigned a strong buy rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $158.17.

Insiders Place Their Bets

In other news, CEO Olivier Pomel sold 11,195 shares of Datadog stock in a transaction on Monday, January 27th. The stock was sold at an average price of $139.86, for a total value of $1,565,732.70. Following the completion of the transaction, the chief executive officer now directly owns 379,693 shares in the company, valued at approximately $53,103,862.98. The trade was a 2.86 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CTO Alexis Le-Quoc sold 127,105 shares of the stock in a transaction dated Monday, February 3rd. The stock was sold at an average price of $142.78, for a total value of $18,148,051.90. Following the sale, the chief technology officer now directly owns 324,778 shares in the company, valued at $46,371,802.84. This trade represents a 28.13 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 627,586 shares of company stock valued at $92,540,479 over the last ninety days. 11.78% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Datadog

Several hedge funds and other institutional investors have recently modified their holdings of DDOG. True Wealth Design LLC lifted its stake in Datadog by 12,000.0% in the 3rd quarter. True Wealth Design LLC now owns 242 shares of the company’s stock worth $28,000 after purchasing an additional 240 shares in the last quarter. Retirement Wealth Solutions LLC bought a new position in shares of Datadog in the fourth quarter worth $30,000. Avior Wealth Management LLC raised its position in shares of Datadog by 55.9% in the fourth quarter. Avior Wealth Management LLC now owns 226 shares of the company’s stock worth $32,000 after buying an additional 81 shares in the last quarter. Meeder Asset Management Inc. boosted its stake in Datadog by 66.5% during the third quarter. Meeder Asset Management Inc. now owns 288 shares of the company’s stock valued at $33,000 after buying an additional 115 shares during the period. Finally, Quarry LP purchased a new position in Datadog during the third quarter worth about $33,000. 78.29% of the stock is currently owned by institutional investors.

Datadog Stock Performance

The business has a 50 day simple moving average of $146.40 and a two-hundred day simple moving average of $130.89. The firm has a market capitalization of $46.16 billion, a P/E ratio of 256.40, a price-to-earnings-growth ratio of 16.83 and a beta of 1.15.

About Datadog

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.