Datadog (NASDAQ:DDOG) Trading Down 4.3% After Earnings Miss

Datadog, Inc. (NASDAQ:DDOG)’s stock price was down 4.3% on Friday following a dissappointing earnings announcement. The stock traded as low as $130.45 and last traded at $130.06. Approximately 1,693,942 shares changed hands during trading, a decline of 64% from the average daily volume of 4,731,600 shares. The stock had previously closed at $135.89.

The company reported $0.13 earnings per share for the quarter, missing the consensus estimate of $0.44 by ($0.31). Datadog had a return on equity of 9.41% and a net margin of 7.58%.

Analyst Ratings Changes

Several research firms have recently issued reports on DDOG. Needham & Company LLC reissued a “buy” rating and set a $160.00 target price on shares of Datadog in a research note on Friday. Wedbush raised Datadog from a “buy” rating to a “strong-buy” rating in a report on Thursday, October 17th. Cantor Fitzgerald assumed coverage on Datadog in a research report on Friday, January 17th. They issued an “overweight” rating and a $180.00 price objective for the company. DA Davidson increased their target price on Datadog from $150.00 to $165.00 and gave the company a “buy” rating in a research report on Monday. Finally, Royal Bank of Canada boosted their price target on shares of Datadog from $151.00 to $170.00 and gave the stock an “outperform” rating in a report on Friday, January 3rd. One analyst has rated the stock with a sell rating, six have given a hold rating, twenty-four have given a buy rating and two have issued a strong buy rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $158.62.

Insider Activity

In other Datadog news, General Counsel Kerry Acocella sold 2,488 shares of Datadog stock in a transaction that occurred on Wednesday, December 4th. The stock was sold at an average price of $158.04, for a total value of $393,203.52. Following the transaction, the general counsel now directly owns 68,758 shares in the company, valued at approximately $10,866,514.32. This trade represents a 3.49 % decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Olivier Pomel sold 178,723 shares of Datadog stock in a transaction on Monday, December 9th. The shares were sold at an average price of $161.28, for a total transaction of $28,824,445.44. Following the completion of the transaction, the chief executive officer now owns 379,693 shares in the company, valued at approximately $61,236,887.04. This trade represents a 32.01 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 627,586 shares of company stock worth $92,540,479. 11.78% of the stock is currently owned by corporate insiders.

Institutional Trading of Datadog

Several hedge funds have recently modified their holdings of DDOG. Retirement Wealth Solutions LLC acquired a new position in shares of Datadog during the 4th quarter worth $30,000. Avior Wealth Management LLC boosted its holdings in Datadog by 55.9% during 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. True Wealth Design LLC grew its position in Datadog by 12,000.0% during the third quarter. True Wealth Design LLC now owns 242 shares of the company’s stock worth $28,000 after buying an additional 240 shares during the period. Meeder Asset Management Inc. grew its position in Datadog by 66.5% during the third quarter. Meeder Asset Management Inc. now owns 288 shares of the company’s stock worth $33,000 after buying an additional 115 shares during the period. Finally, Quarry LP purchased a new position in Datadog in the third quarter valued at about $33,000. 78.29% of the stock is owned by institutional investors and hedge funds.

Datadog Stock Performance

The stock’s 50-day moving average price is $145.85 and its 200-day moving average price is $130.93. The company has a market capitalization of $44.18 billion, a price-to-earnings ratio of 245.36, a P/E/G 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.