In the last three months, 13 analysts have published ratings on Datadog ( DDOG ) , offering a diverse range of perspectives from bullish to bearish.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $144.31, a high estimate of $160.00, and a low estimate of $125.00. Marking an increase of 0.4%, the current average surpasses the previous average price target of $143.73.

Understanding Analyst Ratings: A Comprehensive Breakdown

The analysis of recent analyst actions sheds light on the perception of Datadog ( DDOG ) by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Datadog ( DDOG ). This information provides a snapshot of how analysts perceive the current state of the company.

Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Datadog ( DDOG ) compared to the broader market.

Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Datadog's ( DDOG ) stock. This comparison reveals trends in analysts' expectations over time.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Datadog's ( DDOG ) market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Datadog ( DDOG ) analyst ratings.

Delving into Datadog's ( DDOG ) Background

Datadog ( DDOG ) is a cloud-native company that focuses on analyzing machine data. The firm's product portfolio, delivered via software as a service, allows a client to monitor and analyze its entire IT infrastructure. Datadog's ( DDOG ) platform can ingest and analyze large amounts of machine-generated data in real time, allowing clients to utilize it for a variety of applications throughout their businesses.

Understanding the Numbers: Datadog's Finances

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Positive Revenue Trend: Examining Datadog's ( DDOG ) financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 26.66% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Information Technology sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 6.79%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): Datadog's ( DDOG ) ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 1.9%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Datadog's ( DDOG ) ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 1.02%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: With a below-average debt-to-equity ratio of 0.4, Datadog ( DDOG ) adopts a prudent financial strategy, indicating a balanced approach to debt management.

Understanding the Relevance of Analyst Ratings

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.