Datadog, Inc. (NASDAQ: DDOG) experienced a significant share price increase on Tuesday, following the release of a stronger than expected earnings report. The stock, which closed at $114.01 the previous day, opened at $124.18 and reached a last traded price of $131.52. This surge represents a 14.3% increase in value, with a trading volume of 6,572,671 shares.
The company reported earnings per share (EPS) of $0.59 for the quarter, exceeding analysts’ consensus estimate of $0.55 by $0.04. Datadog’s net margin stands at 3.32%, while its return on equity is 4.14%. Revenue for the quarter amounted to $953.19 million, surpassing the expected $916.53 million. In comparison to the same quarter last year, where the firm posted an EPS of $0.49, revenue has risen by 29.2%.
Future Guidance and Insider Trading Activity
Looking ahead, Datadog has provided guidance for fiscal year 2026, projecting an EPS between $2.080 and $2.160, and for the first quarter of 2026, an EPS of $0.490 to $0.510.
In related news, insider trading activity has been notable. Chief Technology Officer Alexis Le-Quoc sold 53,912 shares on December 8, 2023, at an average price of $154.05, amounting to a total of $8,305,143.60. Following this transaction, Le-Quoc retains 295,448 shares valued at approximately $45,513,764.40, reflecting a 15.43% decrease in his holdings.
Additionally, Chief Executive Officer Olivier Pomel sold 100,754 shares on November 17, 2023, for a total of $18,254,609.72. Pomel now owns 533,358 shares worth $96,633,802.44, marking a 15.89% reduction in his stake. Over the last quarter, insiders sold a cumulative total of 538,917 shares valued at $86,804,288, with insiders currently holding 8.70% of the company’s stock.
Institutional Investments in Datadog
Recent activity among institutional investors and hedge funds indicates a shift in stakes regarding Datadog. Elevation Point Wealth Partners LLC increased its holdings by 3.3% during the third quarter, now owning 1,697 shares valued at $242,000. Similarly, Chicago Partners Investment Group LLC raised its investment by 1.6%, holding 4,778 shares worth $622,000.
Other significant increases include Vivaldi Capital Management LP, which grew its stake by 2.8%, and Westside Investment Management Inc., which raised its investment by 74.3%. Collectively, institutional investors and hedge funds now own 78.29% of Datadog’s stock.
Currently, Datadog maintains a market capitalization of $45.69 billion with a debt-to-equity ratio of 0.29. The company’s current and quick ratios both stand at 3.66, while its price-to-earnings ratio is 428.15. Datadog’s 50-day simple moving average is $134.40, and its 200-day simple moving average is $144.20.
Datadog operates as a cloud-based monitoring and observability platform, providing tools for organizations to monitor and secure their applications and infrastructure. The company’s software-as-a-service offering aggregates metrics, traces, and logs to deliver real-time insights into system performance. Its diverse product suite is utilized by engineering, operations, and security teams to enhance application reliability and reduce downtime.
