DDOG Bounces Back on Fresh Analyst Coverage

DDOG is set to snap a four-day losing streak

Assistant Editor
Jan 20, 2021 at 10:28 AM
facebook twitter linkedin


The shares of Datadog Inc (NASDAQ:DDOG) are up 1.9% at $100.94 at last check, after Truist Securities initiated coverage with a "buy" rating and $120 price target. The firm cited Datadog's leadership in the converging observability market, given its cloud-native architecture and impressive infrastructure monitoring tools. Though conceding that the valuation isn't too cheap at the moment, the analyst said the shares are still attractive on a growth-adjusted basis. 

DDOG has had a volatile run on the charts lately. Since November, support at the 160-day moving average has managed to capture several pullbacks. The equity's recent rally attempt was capped off by the $108 level, however, and the shares have since seen four consecutive days of losses. Looking to stage a bounce today, Datadog stock is up over 141% year-over-year. 

Truist Securities is joining a split brokerage bunch, with 10 analysts carrying a lukewarm "hold" rating coming into today, and the remaining eight a "buy" or better. Meanwhile, the 12-month consensus price target of $105.35 is a 3.7% premium to current levels. 

Meanwhile, there's plenty of short interest to be unwound. The 15.35 million shares sold short account for 8.4% of the stock's available float, or four days of pent-up buying power at DDOG's average pace of trading.    

 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

Schaeffer's Investment Research Master Portfolio Trial
 


 


 
Special Offers from Schaeffer's Trading Partners