Datadog (NASDAQ:DDOG) Stock Price Down 8.7% – Should You Sell?

27 Mar 2026, 17:22 by Tristan Rich · The Markets Daily

Datadog, Inc. (NASDAQ:DDOG – Get Free Report)’s share price fell 8.7% during trading on Friday . The stock traded as low as $113.44 and last traded at $113.4580. 1,102,490 shares changed hands during trading, a decline of 81% from the average session volume of 5,853,266 shares. The stock had previously closed at $124.30.

Analysts Set New Price Targets

DDOG has been the subject of several recent research reports. Wall Street Zen lowered Datadog from a “buy” rating to a “hold” rating in a report on Saturday, January 17th. Wolfe Research lowered their target price on Datadog from $185.00 to $160.00 and set an “outperform” rating on the stock in a research note on Tuesday, February 10th. Arete Research upped their target price on Datadog from $230.00 to $260.00 and gave the stock a “buy” rating in a research report on Thursday, December 11th. Stifel Nicolaus set a $160.00 price target on Datadog and gave the stock a “buy” rating in a research note on Thursday, January 22nd. Finally, Citigroup reduced their price target on Datadog from $200.00 to $175.00 and set a “buy” rating for the company in a report on Friday, January 16th. Thirty-six equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, Datadog currently has a consensus rating of “Moderate Buy” and a consensus target price of $179.62.

View Our Latest Analysis on Datadog

Datadog Price Performance

The stock has a market capitalization of $40.00 billion, a P/E ratio of 365.93, a PEG ratio of 33.89 and a beta of 1.31. The stock’s fifty day moving average is $122.62 and its 200-day moving average is $141.15. The company has a debt-to-equity ratio of 0.26, a current ratio of 3.38 and a quick ratio of 3.38.

Datadog (NASDAQ:DDOG – Get Free Report) last posted its earnings results on Tuesday, February 10th. The company reported $0.59 earnings per share for the quarter, beating the consensus estimate of $0.55 by $0.04. Datadog had a return on equity of 4.14% and a net margin of 3.14%.The company had revenue of $953.19 million for the quarter, compared to analyst estimates of $916.53 million. During the same period last year, the company earned $0.49 earnings per share. The business’s revenue was up 29.2% compared to the same quarter last year. Datadog has set its FY 2026 guidance at 2.080-2.160 EPS and its Q1 2026 guidance at 0.490-0.510 EPS. On average, equities analysts anticipate that Datadog, Inc. will post 0.34 earnings per share for the current year.

Insider Activity at Datadog

In related news, CTO Alexis Le-Quoc sold 53,912 shares of the company’s stock in a transaction on Tuesday, March 10th. The shares were sold at an average price of $125.49, for a total transaction of $6,765,416.88. Following the completion of the sale, the chief technology officer directly owned 437,257 shares of the company’s stock, valued at approximately $54,871,380.93. This represents a 10.98% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CRO Sean Michael Walters sold 22,330 shares of the firm’s stock in a transaction on Wednesday, March 11th. The shares were sold at an average price of $125.68, for a total transaction of $2,806,434.40. Following the completion of the transaction, the executive owned 238,384 shares in the company, valued at $29,960,101.12. The trade was a 8.56% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 492,530 shares of company stock valued at $61,476,744. Corporate insiders own 6.67% of the company’s stock.

Institutional Investors Weigh In On Datadog

Hedge funds have recently bought and sold shares of the company. Rothschild Investment LLC boosted its stake in Datadog by 126.6% during the 3rd quarter. Rothschild Investment LLC now owns 179 shares of the company’s stock valued at $25,000 after purchasing an additional 100 shares during the period. Physician Wealth Advisors Inc. lifted its holdings in shares of Datadog by 315.2% during the third quarter. Physician Wealth Advisors Inc. now owns 191 shares of the company’s stock worth $27,000 after buying an additional 145 shares during the last quarter. Westside Investment Management Inc. boosted its position in shares of Datadog by 74.3% in the third quarter. Westside Investment Management Inc. now owns 176 shares of the company’s stock valued at $27,000 after acquiring an additional 75 shares during the period. JPL Wealth Management LLC bought a new stake in shares of Datadog in the third quarter valued at approximately $27,000. Finally, Tripletail Wealth Management LLC acquired a new position in Datadog in the third quarter worth about $28,000. 78.29% of the stock is currently owned by institutional investors.

About Datadog

(Get Free Report)

Datadog (NASDAQ: DDOG) is a cloud-based monitoring and observability platform that helps organizations monitor, troubleshoot and secure their applications and infrastructure at scale. Its software-as-a-service offering collects and analyzes metrics, traces and logs from servers, containers, cloud services and applications to provide real-time visibility into system performance and health. Datadog’s platform is widely used by engineering, operations and security teams to reduce downtime, accelerate incident response and improve application reliability.