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NEW YORK—Shah Shardul, a director at Datadog, Inc. (NASDAQ:DDOG), a $47.1 billion market cap company with impressive gross profit margins of 81%, has sold a significant portion of his holdings in the company, according to a recent SEC filing. According to InvestingPro analysis, the company maintains a GOOD financial health score, with 14 key investment insights available to subscribers. On January 15, Shardul disposed of 7,916 shares of Datadog's Class A common stock. The shares were sold at prices ranging from $141.19 to $144.42 per share, amounting to a total transaction value of approximately $1.12 million. The transaction occurs as analysts maintain a bullish outlook on the stock, with price targets ranging from $128 to $230 per share. Based on InvestingPro's Fair Value assessment, the stock appears slightly overvalued at current levels.
Following these transactions, Shardul holds 427,785 shares indirectly through the 2019 Shah Family Trust. The sales were conducted under a pre-arranged 10b5-1 trading plan established in June 2024. The company maintains strong liquidity with a current ratio of 2.13, indicating robust financial positioning. Discover more detailed insights and comprehensive analysis in the Pro Research Report, available exclusively on InvestingPro.
In other recent news, Datadog's stock rating has been adjusted by several analyst firms. Morgan Stanley (NYSE:MS) downgraded Datadog's stock rating to Equal-weight, citing a more balanced risk-reward scenario. The firm noted that Datadog's transition into cloud security and cloud service management represents a significant market opportunity, potentially worth over $100 billion by 2027. However, Morgan Stanley also highlighted potential risks, including a possible temporary deceleration in revenue growth.
Simultaneously, Guggenheim maintained a Neutral stance on Datadog's stock. The firm projects a 23% growth for Datadog by fiscal year 2025, slightly above the consensus estimate of 22%, but expressed concern over Datadog's valuation, which trades at a premium.
Moreover, UBS reiterated a Buy rating on Datadog's stock, expressing optimism around long-term growth opportunities. UBS raised its price target on the company's shares to $175 from $150, following a recent conference where Datadog highlighted a resurgence in cloud projects within traditional industries.
Datadog also announced the expansion of its Board of Directors with the appointment of Amit Agarwal as a Class II director, effective January 1, 2025. Loop Capital maintained a 'Buy' rating on the company, projecting a significant Free Cash Flow (FCF) of $7.9 billion by FY34. These are recent developments in the company's trajectory.
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