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Datadog insiders sell under 10b5-1 plans amid shares doubling
The stock is up about 100% year-to-date, and insiders still hold more than 6% of Datadog shares.
Datadog (NASDAQ: DDOG) saw insider selling in Q3 that created a near-term headwind for the stock, but much of the activity was tied to prearranged 10b5-1 trading plans, which are designed to reduce insider trading concerns, according to MarketBeat Ratings.
The outlet noted that Datadog shares have risen about 100% year-to-date, more than doubled year-over-year, and now trade around 6.75 times the company’s IPO price, suggesting the selling may partly reflect profit-taking rather than a new negative signal.
MarketBeat Ratings also pointed out that insiders, including founders, still own more than 6% of the shares, while analysts and institutional participation, along with low short interest, indicate bullish positioning despite the insider transactions.
The story further explained that 10b5-1 plans are set up with a broker, require certification that insiders do not have current material nonpublic information, and include restrictions such as directors and officers needing to wait at least 90 days before the first trade under a plan.
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