Datadog Inc. [NASDAQ:DDOG] shares were trading 5.39% to $108.19 on Thursday. Comparativley, The S&P 500 is trading at 0.5%. For the year, the stock is trading 171.73% and the five-day change stands at -0.82%.
DDOG’s next earning date is 11/17/2020. Currently, the company is booking earnings per share of 0.01 with the price-to-cash-flow at 528.79.
The company is also reporting 0.01 earnings per share.
The Price is right
Holding a Market Cap of $31.15 billion, Datadog Inc. has seen a trading range over the last year of $27.55-$109.60.
For the last five days, DDOG is down from its last closing price. The average shares trading hands each day is 4.88M, with average 10-day volume coming in at 8.43 million.
Using a Force Index Indicator is a good way to look at how strong actual buying and selling pressure is for DDOG. When we apply the Elder Force Index to Datadog Inc., we are seeing an Elder Force Indicator number of 14775612.53.
The recent performance of the stock is another area that can tell traders how to proceed. DDOG is presenting an interesting case. This can be seen in the Forward P/E ratio, which currently stands at 679.87. Moreover, the company’s enterprise value has gone from $25.55B to $10.03B quarter-over-quarter. Obviously, the company is heading in the wrong direction, but there are still opportunities for growth in the sector.
In the last quarter, DDOG made a profit of 111.13 million. Datadog Inc. also saw quarter revenue growth year over year of 83.15%. In addition, the company has operating cash flow of $70.25 million.
Looking at popular technical indicators, the company’s 5-day moving average is 105.20 compared to the 50-day moving average of 89.32. So, we are clearly seeing an upward trajectory here.
The Relative Strength Index or RSI is an indicator ranging between 0 and 100 that traders use to determine if a stock is “overbought” or “oversold.” A strong uptrend tending to reach into the “overbought” status is above 70, while a downward trend will stay around the 30 mark. DDOG currently holds a 9-day RSI of 72.42%, while 100-day RSI stands at 59.63%.
Another indicator we believe is worth keeping tabs on is the Moving Average Convergence Divergence or MACD. Similar to the concept of the Force Index — on the basis of price momentum — the MACD gives traders a tool to measure the turning point of a stock even during rapid fluctuations in price. Buy and sell signals are determined by a stock’s relation to the zero line, so if a stock is above a zero line for many weeks it might be a “buy.” On the other hand, if a stock is below the zero line consistently, it might be one to stay away from. Also, if the MACD line reaches a peak and dips, its momentum may be waning. DDOG’s 9-day MACD is 2.16 and the company’s 100-day MACD stands at 19.42.
Another area that is important to analyze is insider moves and majority shareholders. While this is not always an error-free way to tell what the future holds for a stock, you can maybe gather important information from reading the tea leaves about who is buying and selling.
The major holders for this stock are 1.59% by insiders and 50.31% by institutions. Regarding institutional holdings, Price (T.Rowe) Associates Inc owns 12.19%, while the second top holder, Vanguard Group, Inc. (The), currently owns 5.92%.
Over the last six months, insiders have sold 11,250 with the most recent transaction from De Madre Armelle, Chief People Officer, with a sell at price 102.77 per share.
Overall, the recommended rating for DDOG is Moderate Buy. Currently, the company has 18 analysts watching the stock, and the average quarterly earnings estimate is 0.01. Quarterly revenue estimates are averaging 144.33M with the high estimate reaching 146.67M and the low at 143.2M.
To review, the current 1-year target estimate is sitting at 95.93, while the current price 108.19. Based on this, we expect some pullback on the stock over time given our above analysis.