Datadog (NASDAQ:DDOG) Shares Gap Down on Disappointing Earnings

Datadog, Inc. (NASDAQ:DDOG) gapped down prior to trading on Thursday following a weaker than expected earnings announcement. 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 traded.

The company reported $0.13 earnings per share (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%.

Analyst Ratings Changes

Several brokerages have recently weighed in on DDOG. Morgan Stanley reiterated an “equal weight” rating and issued a $143.00 price target on shares of Datadog in a report on Thursday, January 16th. BMO Capital Markets lifted their target price on Datadog from $135.00 to $145.00 and gave the stock an “outperform” rating in a research report on Friday, November 8th. Guggenheim reaffirmed a “neutral” rating on shares of Datadog in a research note on Wednesday, January 22nd. Wedbush upgraded shares of Datadog from a “buy” rating to a “strong-buy” rating in a report on Thursday, October 17th. Finally, Citigroup upped their target price on shares of Datadog from $157.00 to $170.00 and gave the stock a “buy” rating in a research note on Friday, January 17th. One equities research analyst has rated the stock with a sell rating, five have issued a hold rating, twenty-five have given a buy rating and two have issued a strong buy rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $158.52.

Insiders Place Their Bets

In related news, CTO Alexis Le-Quoc sold 127,105 shares of the stock in a transaction on Wednesday, January 8th. The shares were sold at an average price of $141.21, for a total transaction of $17,948,497.05. Following the sale, the chief technology officer now directly owns 324,778 shares of the company’s stock, valued at approximately $45,861,901.38. This represents a 28.13 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CEO Olivier Pomel sold 178,723 shares of Datadog stock in a transaction dated Monday, December 9th. The shares were sold at an average price of $161.28, for a total value of $28,824,445.44. Following the completion of the transaction, the chief executive officer now owns 379,693 shares of the company’s stock, valued at approximately $61,236,887.04. This represents a 32.01 % decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 777,586 shares of company stock valued at $111,444,979. Company insiders own 11.78% of the company’s stock.

Hedge Funds Weigh In On Datadog

A number of hedge funds have recently made changes to their positions in the company. True Wealth Design LLC raised its position in shares of Datadog by 12,000.0% in the third quarter. True Wealth Design LLC now owns 242 shares of the company’s stock valued at $28,000 after buying an additional 240 shares during the last quarter. Retirement Wealth Solutions LLC purchased a new position in Datadog during the fourth quarter worth about $30,000. Avior Wealth Management LLC lifted its stake 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 purchasing an additional 81 shares in the last quarter. Meeder Asset Management Inc. lifted its stake in Datadog by 66.5% during the 3rd quarter. Meeder Asset Management Inc. now owns 288 shares of the company’s stock worth $33,000 after acquiring an additional 115 shares in the last quarter. Finally, Quarry LP purchased a new position in Datadog during the 3rd quarter valued at about $33,000. Institutional investors and hedge funds own 78.29% of the company’s stock.

Datadog Stock Performance

The company has a market capitalization of $44.74 billion, a price-to-earnings ratio of 248.68, a P/E/G ratio of 16.83 and a beta of 1.15. The firm has a 50-day simple moving average of $146.40 and a two-hundred day simple moving average of $130.89.

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.