Datadog chief revenue officer sells $1.3 million in stock

In a recent SEC filing, Datadog, Inc. (NASDAQ:DDOG) reported that Sean Michael Walters, the company’s Chief Revenue Officer, sold 11,167 shares of Class A Common Stock on June 2, 2025. The shares were sold at an average price of $116.841, totaling approximately $1.3 million. The stock, currently trading at $119.69, has shown strong momentum with a 2% gain over the past week, though InvestingPro analysis indicates the stock is in overbought territory.

Following this transaction, Walters holds 235,431 shares directly. According to the filing, the sale was conducted to cover tax withholding obligations related to the vesting of restricted stock units and performance-based restricted stock units. Additionally, Walters indirectly owns 8 shares through his son. With a market capitalization of $41.3 billion and impressive gross profit margins of 80%, Datadog maintains a strong financial position. InvestingPro subscribers can access 15+ additional key insights and detailed valuation metrics in the comprehensive Pro Research Report.

In other recent news, Datadog announced the release of two significant projects from its AI Research division: Toto, an open-source foundation model for observability, and BOOM, a public benchmark for observability metrics. These advancements aim to enhance cloud observability and security, with Toto being particularly noted for its zero-shot forecasting capabilities. Additionally, Datadog is progressing toward achieving FedRAMP High authorization, which would allow it to better serve U.S. federal agencies by meeting stringent security requirements. This move signifies Datadog’s dedication to aligning with government modernization efforts.

On the financial front, Cantor Fitzgerald maintained an Overweight rating for Datadog with a price target of $134, highlighting the company’s leadership in cloud observability and projecting over 20% growth by 2025. Similarly, DA Davidson reaffirmed a Buy rating with a $125 price target, citing Datadog’s strong growth among AI-native customers and ongoing product investments. Meanwhile, Bernstein adjusted its price target for Datadog to $145 from $151, maintaining an Outperform rating despite the target cut. Bernstein noted a notable revenue contribution from AI-focused companies, which significantly impacted Datadog’s earnings performance. These developments reflect a mix of strategic advancements and positive analyst sentiment surrounding Datadog’s market position and growth potential.

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