The stock of Datadog Inc. (NASDAQ:DDOG) increased by $1.27 on Tuesday to finish at $93.81, up 1.37 percent. The last five days have seen an average of 2,846,680 shares of common stock traded. 17 times new highs were reached in the current year, with a gain of $20.31. The average number of shares traded over the last 20 days was 5,671,250, while the average volume over the last 50 days totaled 4,579,144.
DDOG stock dropped -19.63% since last month. On 08/08/23, the company’s shares reached a one-month low of $83.87. The stock touched a high of $118.02 on 07/25/23, after rallying from a low of $61.34 in 52 weeks. The price of DDOG stock has risen by 27.63% or $20.31 this year, reaching a new high 17 times. Still, the stock price is down -20.51% from the 52-week high.
Insider Transactions
DDOG stock investors should be aware that Datadog Inc. (DDOG) stock had its last reported insider trading activity 6 days ago on Aug 24. On Aug 24, President Agarwal Amit sold 112,500 shares at $92.66 each. This transaction resulted in the insider making $10,424,677. On Aug 23, Agarwal Amit sold 112,000 shares at a price of US$94.67. After the transaction, the insider now owns 269,141 shares. President Agarwal Amit had earlier sold 112,000 shares on Aug 22 for $93.64 a share. The transaction was completed for $10,488,177.
Valuation Metrics
Beta for the stock is 1.01. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 15.94, the price-to-book (PB) ratio of 18.32, and the price-to-cash flow ratio of 71.75.
Financial Health
For the three months ended June 29, Datadog Inc.’s quick ratio was 3.40, while its current ratio was 3.40, indicating its ability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending June 29 is 0.45, and the total debt to equity ratio is 0.45. As far as profitability goes, gross margin for the trailing twelve months is 79.30% percent. Datadog Inc.’s EBITDA margin for the year ended June 29 was 1.51%, whereas its operating margin stood at -6.50% for the same period. Based on annual data, it had gross profit of $1.33 billion and revenue of $1.68 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. DDOG’s return on assets (ROA) during the last 12 months has been -2.70%. There was a -3.30% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was -5.70%.
Earnings Surprise
According to Datadog Inc.’s quarterly financial report for the quarter that ended June 29. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $508.61 million, while revenues rose by 20.15% to $481.71 million. It was predicted that Datadog Inc.’s quarterly earnings would be $0.36, but it ended up being $0.28, beating the consensus by 28.60%. EBITDA was -$9.36 million for the quarter. At the end of Datadog Inc.’s most recent quarter ended June 29, its liabilities totaled 1.66 billion, while its total debt was $885.08 million. Equity owned by shareholders amounts to $325.0 million.
Technical Picture
Here’s a quick look at Datadog Inc.’s (DDOG) price momentum from a technical perspective. As of 29 August, the RSI 9-day stood at 46.70%, suggesting the stock is Neutral, with a 31.15% historical volatility rate.
The stochastic %K and %D were 63.77% and 53.39% respectively, while the average true range (ATR) was 4.00. Based on the 14-day stochastic reading of 63.88%, the RSI (14) reading is 45.06%. On the 9-day MACD Oscillator, the stock is at -0.19, and the 14-day reading is at 1.01.
Analyst Ratings
In its analyst report released on August 18, 2023, TD Cowen began covering Datadog Inc. (NASDAQ: DDOG). The stock was rated as an Outperform by the brokerage firm. Analysts have assigned Datadog Inc. (DDOG) an Overweight rating. DDOG is a stock that is recommended for selling by 0 brokerage firms, while 10 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 7 rates it overweight and 22 others recommend it as a buy.
What is DDOG’s price target for the next 12 months?
The current consensus forecast for the stock is between $70.00 and $133.00, with a median target price of $105.00. In analyzing these forecasts, the average price target given by analysts for Datadog Inc. (DDOG) is $106.55.
