Datadog Inc (NASDAQ:DDOG) shares scored an upgrade from Stifel to "buy" from "hold" this morning, which is triggering a 5.3% move higher to $130.04, at last check. The analyst said it expects the company to see strong growth for the fourth quarter, but still cut its price objective to $160 from $205.
The majority of brokerages already leaned bullish toward DDOG coming into today, with 37 of the 43 in coverage sporting a "buy" or better rating, while the 12-month consensus target price of $199.18 is a 52% premium to current levels.
The equity yesterday snapped a five-day losing streak, after recently hitting its lowest level since June. Shares are now pacing for their biggest gain since November and sport a 30.5% nine-month lead, as they test overhead pressure from the 20-day moving average.
Drilling down to today's options activity, 11,000 calls and 11,000 puts have crossed the tape, which is double the amount typically seen at this point. Most popular is the February 120 put, with new positions being opened at the June 120 put.
It's also worth noting that the security sports a Schaeffer's Volatility Scorecard (SVS) of 98 out of 100, meaning DDOG has consistently realized higher volatility than its options pits have priced in.
