Datadog Inc. (NASDAQ: DDOG) stock fell -0.05% on Monday to $94.50 against a previous-day closing price of $94.55. With 1.85 million shares changed hands, the volume of the stock remained lighter than its average volume of 4.4 million shares. During the session, the Software – Application company that operates in wider Technology sector, reached to the highest price of $95.49 whereas the lowest price it dropped to was $93.25. The 52-week range on DDOG shows that it touched its highest point at $118.02 and its lowest point at $61.34 during that stretch. It currently has a 1-year price target of $106.00. Beta for the stock currently stands at 0.98.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of DDOG was down-trending over the past week, with a drop of -7.24%, but this was up by 4.66% over a month. Three-month performance dropped to -1.31% while six-month performance rose 37.71%. The stock lost -0.90% in the past year, while it has gained 28.57% so far this year. A look at the trailing 12-month EPS for DDOG yields -0.26 with Next year EPS estimates of 1.63. For the next quarter, that number is 0.34. This implies an EPS growth rate of -136.90% for this year and 22.16% for next year. EPS is expected to grow by 26.20% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 100.25%.
Float and Shares Shorts:
At present, 322.21 million DDOG shares are outstanding with a float of 271.92 million shares on hand for trading. On Aug 30, 2023, short shares totaled 13.53 million, which was 4.16% higher than short shares on Jul 30, 2023. In addition to Mr. Olivier Pomel as the firm’s Co-Founder, CEO & Director, Mr. Amit Agarwal serves as its Pres.
Through their ownership of 78.32% of DDOG’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 9.04% of DDOG, in contrast to 40.25% held by mutual funds. Shares owned by individuals account for 35.39%. As the largest shareholder in DDOG with 8.28% of the stake, The Vanguard Group, Inc. holds 24,749,751 shares worth 24,749,751. A second-largest stockholder of DDOG, Iconiq Capital LLC, holds 16,734,868 shares, controlling over 5.60% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in DDOG, holding 11,474,613 shares or 3.84% stake. With a 2.78% stake in DDOG, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 8,312,377 shares are owned by the mutual fund manager. The Vanguard Mid Cap Index Fund, which owns about 2.07% of DDOG stock, is the second-largest Mutual Fund holder. It holds 6,178,864 shares valued at 596.14 million. Invesco QQQ Trust holds 1.67% of the stake in DDOG, owning 4,990,706 shares worth 481.5 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, DDOG reported revenue of $406.14M and operating income of -$3.14M. The EBITDA in the recently reported quarter was $12.65M and diluted EPS was -$0.02.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for DDOG since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With DDOG analysts setting a high price target of $133.00 and a low target of $70.00, the average target price over the next 12 months is $106.67. Based on these targets, DDOG could surge 40.74% to reach the target high and fall by -25.93% to reach the target low. Reaching the average price target will result in a growth of 12.88% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.
Summary of Insider Activity:
Insiders traded DDOG stock several times over the past three months with 0 Buys and 9 Sells. In these transactions, 0 shares were bought while 60,618 shares were sold. The number of buy transactions has increased to 41 while that of sell transactions has risen to 55 over the past year. The total number of shares bought during that period was 2,007,961 while 377,400 shares were sold.