Datadog, Inc. (NASDAQ:DDOG), a $56.32 billion market cap company with impressive gross profit margins of 81%, saw its CEO Olivier Pomel recently sell 13,053 shares of the company's Class A common stock, according to a filing with the Securities and Exchange Commission. The shares were sold at an average price of $152.14, resulting in a total transaction value of approximately $1.99 million. Following this sale, Pomel retains ownership of 379,693 shares. The sale was required to cover tax obligations related to the vesting of restricted stock units. The transaction comes as Datadog trades near its 52-week high, with InvestingPro data showing strong momentum with a 42% price return over the past six months. InvestingPro subscribers have access to 19 additional investment tips and a comprehensive Pro Research Report for deeper analysis of DDOG's performance and valuation metrics.
In other recent news, Datadog has been the subject of numerous analyst adjustments, reflecting confidence in the company's growth trajectory. TD (TSX:TD) Cowen maintained a Buy rating on Datadog shares, emphasizing the company's significant opportunities for market share gains, strong cloud leverage, and increasing free cash flow. The firm also highlighted the potential for Datadog's inclusion in the S&P 500 index. CMB International Securities initiated a Buy rating, predicting a 24% compound annual growth rate in revenue from 2023 to 2026.
Several firms, including BMO (TSX:BMO) Capital Markets, Needham, Rosenblatt, and Barclays (LON:BARC), raised their price targets after Datadog's recent earnings report revealed a 26% year-over-year revenue increase, reaching $690 million. The company added about 2,400 new customers, with 3,490 customers contributing over $100,000 in annual recurring revenue, accounting for 88% of the total.
Analysts from firms such as Goldman Sachs (NYSE:GS) and DA Davidson revised their price targets, recognizing Datadog's strong financial performance and growth. However, the company has not provided specific guidance for 2025, instead focusing on building sales and engineering capacity. These are recent developments, reflecting the increasing confidence in Datadog's long-term growth prospects.
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