Datadog Inc. [DDOG] – The key to winning is to focus on the bigger picture
Datadog Inc. [NASDAQ: DDOG] opened at $34.10 and closed at $32.90 a share within trading session on 03/23/20. That means that the stock gained by 6.44% compared to the closing price from a day before, when the stock touched $35.02.
Between the start and the closing of the latest trading session, Datadog Inc. [NASDAQ: DDOG] had 1.94 million shares being bought and sold. In the last three months, average trading volumes hovered around 3.44M shares. During the last week, volatility in the share price was set at 10.87%, which placed the metric for the last 30 days at 9.02%. The price of the stock additionally went down to 27.55 during that period and DDOG managed to take a rebound to 50.12 in the last 52 weeks.
Datadog Inc. [NASDAQ:DDOG]: Analyst Rating and Earnings
Stock market traders frequently keep their eyes on what Wall Street experts as it relates to a potential investment. For Datadog Inc. [DDOG], the most recent analyst consensus recommendation available since its latest financial results for the quarter ending in 12/30/2019. On average, stock market experts give DDOG an Overweight rating. The average 12-month price forecast for this stock is $35.01, with the high estimate being $65.00, the low estimate being $42.00 and the median estimate amounting to $49.00. This is compared to its latest closing price of $32.90.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Datadog Inc. [DDOG] is sitting at 3.82. This is compared to 1 month ago, when its average rating was 3.82.
Keep your eyes peeled for the soon-to-be-published financial results of this company, which are expected to be made public on 05/07/2020.
Fundamental Analysis of Datadog Inc. [DDOG]
Now let’s turn to look at profitability: with a current Operating Margin for Datadog Inc. [DDOG] sitting at -5.50% and its Gross Margin at 75.50%, this company’s Net Margin is now -4.60. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is -4.44, and its Return on Invested Capital has reached -3.73. Its Return on Equity is -4.80%, and its Return on Assets is -2.60%. These metrics suggest that this Datadog Inc. does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, Datadog Inc. [DDOG] has generated a Total Debt to Total Equity ratio of 7.72. Similarly, its Total Debt to Total Capital is 7.17, while its Total Debt to Total Assets stands at 5.82. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 6.20, and its Long-Term Debt to Total Capital is 5.76.
What about valuation? This company’s Enterprise Value to EBITDA is 3,219.72. The Enterprise Value to Sales for this firm is now 35.44, and its Total Debt to Enterprise Value stands at 0.01. Datadog Inc. [DDOG] has a Price to Book Ratio of 14.31, a Price to Cash Flow Ratio of 218.06.
Datadog Inc. [DDOG] has 287.92M shares outstanding, amounting to a total market cap of 9.47B. Its stock price has been found in the range of 27.55 to 50.12. At its current price, it has moved down by -30.13% from its 52-week high, and it has moved up 27.11% from its 52-week low.
This stock’s Relative Strength Index (RSI) is at 43.67. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Datadog Inc. [DDOG] a Reliable Buy?
Shares of Datadog Inc. [DDOG], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.