Would It Be A Good Move Today To Sell Datadog Inc. (DDOG) Stock?

As of Friday close, Datadog Inc.’s (NASDAQ:DDOG) stock was up $10.03, moving up 10.15 percent to $108.86. The average number of shares traded per day over the past five days has been 7,404,660 shares. 2 times new highs have been achieved over the past 5 days, with a -$1.14 fall in that time frame. In the last twenty days, the average volume was 5,742,000, while in the previous 50 days, it was 4,656,858.

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Since last month, DDOG stock retreated -23.80%. Shares of the company fell to $92.39 on 05/10/22, the lowest level in the past month. A 52-week high of $199.68 was reached on 02/10/22 after having rallying from a 52-week low of $76.15. Since the beginning of this year, DDOG’s stock price has dropped by -38.88% or -$69.25, and marked a new high 2 times. However, the stock has declined by -45.48% since its 52-week high.

Datadog Inc. (DDOG) last reported insider trading activity 3 days ago on May 11. Acocella Kerry, the General Counsel/Corp Secy of the company, disposed of 2,044 shares for $100.91 on May 11. It resulted in a $206,260 divestment by the insider. Shah Shardul sold 16,487 shares at an average price of $99.49 on May 09. The insider now owns 0 shares following the transaction. On May 06, Chief Product Officer Agarwal Amit sold 2,500 shares at $102.68 apiece. The transaction was valued at $256,697.

Valuation Metrics

Right now, Datadog Inc. (DDOG) has a P/E ratio of about 36286.67. Besides these, the trailing price-to-sales (P/S) ratio of 29.22, the price-to-book (PB) ratio of 32.59, and the price-to-cash flow ratio of 187.46 may also be considered.

Financial Health

In the three months ended September 29, Datadog Inc.’s quick ratio stood at 3.50, while its current ratio was 3.50, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending September 29 was 0.71, and the total debt-to-equity ratio was 0.71. On the profitability front, the trailing twelve-month gross margin is 78.00% percent. In the year ended September 29, operating margins totaled -3.10%. Based on annual data, DDOG earned $794.54 million in gross profit and brought in $1.03 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was -1.20%. Return on equity (ROE) for the past 12 months was -4.70%.

According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. DDOG’s revenue rose 45.31% to $326.2 million during the quarter, while net income inched up to $363.03 million. While analysts expected Datadog Inc. to report $0.06 quarterly earnings, the actual figure was $0.13 per share, beating the consensus estimate by 116.70%. During the quarter, the company generated $28.63 million in EBITDA. The liabilities of Datadog Inc. were 1.41 billion at the end of its most recent quarter ended September 29, and its total debt was $807.26 million. The value of shareholders’ equity is $315.02 million.

Technical Picture

This quick technical analysis looks at Datadog Inc.’s (DDOG) price momentum. With a historical volatility rate of 91.65%, the RSI 9-day stood at 44.38% on 13 May.

With respect to its five-day moving average, the current Datadog Inc. price is down by -1.04% percent or -$1.14. At present, DDOG shares trade -19.98% below its 20-day simple moving average and -33.78% percent below its 100-day simple moving average. However, the stock is currently trading approximately -26.67% below its SMA50 and -2.13% below its SMA200.

Stochastic coefficient K was 24.70% and Stochastic coefficient D was 16.58%, while ATR was 11.52. Given the Stochastic reading of 42.99% for the 14-day period, the RSI (14) reading has been calculated as 41.64%. As of today, the MACD Oscillator reading stands at -4.50, while the 14-day reading stands at -10.03.

Analyst Ratings

Monness Crespi & Hardt reiterated its a Buy rating on Datadog Inc. (NASDAQ: DDOG) in a note to investors. The analysts firm has however raised their price target to $160, representing a possible 52.25% increase in the stock price. Datadog Inc. (DDOG) has been rated Overweight by analysts. According to 1 brokerage firm, DDOG is a sell, and 4 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 4 analysts rate Datadog Inc. stock as buy, with 15 recommending it as overweight.

With a median target price of $170.00, the current consensus forecast for the stock is $104.00 – $223.00. Based on these forecasts, analysts predict Datadog Inc. (DDOG) will achieve an average price target of $168.46.


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