Form 4: Datadog CTO Sells $4.1M in Stock via 10b5-1 Plan

Datadog's Chief Technology Officer, Alexis Le-Quoc, sold 32,418 shares of Class A Common Stock for approximately $4.1 million on March 23, 2026, under a pre-arranged 10b5-1 plan.

Summary

• Alexis Le-Quoc, Datadog's Chief Technology Officer, Director, and 10% owner, reported transactions on March 23, 2026.
• Converted 32,418 shares of Class B Common Stock into an equal number of Class A Common Stock.
• Subsequently sold all 32,418 newly converted Class A Common Stock shares through multiple transactions.
• The sales were executed at weighted-average prices ranging from $124.72 to $130.0469 per share.
• Total proceeds from the sales amount to approximately $4,149,000.
• These transactions were conducted under a Rule 10b5-1 trading plan established on June 13, 2025.
• Following these transactions, Le-Quoc directly holds 437,257 Class A Common Stock and 2,608,734 Class B Common Stock.
• An additional 169 Class A Common Stock and 6,203,835 Class B Common Stock are held indirectly by the Alexis Le-Quoc Revocable Trust.

Sentiment

Score: 4

Explanation: StockSavvy.ai views this as a slightly negative signal due to the significant insider selling by a key executive, despite the presence of a 10b5-1 plan which suggests pre-planning rather than immediate reaction.

Positives

• The sales were executed under a pre-arranged 10b5-1 plan, indicating a planned divestment rather than a reaction to recent news or market conditions.

Negatives

• Significant insider selling by a key executive (CTO, Director, 10% owner) could be perceived negatively by investors.
• The sale of 32,418 shares, totaling approximately $4.1 million, represents a substantial divestment.

Future Outlook

NA

Industry Context

StockSavvy.ai notes that insider sales, even when pre-scheduled via 10b5-1 plans, are often scrutinized by the market as they can signal a lack of confidence or a desire for diversification by key executives. While 10b5-1 plans mitigate the perception of opportunistic trading, the sheer volume of shares sold by a CTO and 10% owner of a tech company like Datadog warrants attention.

Related Party Transactions

• Shares are held indirectly by the Alexis Le-Quoc Revocable Trust, indicating a related party holding.

Stakeholder Impact

• Shareholders: May interpret the insider sale as a negative signal, potentially leading to downward pressure on the stock price.
• Employees: No direct impact mentioned, but significant insider sales can sometimes affect employee morale or perception of company stability.

Key Dates

Recommendation

While the insider sale by a key executive is a negative signal, the transaction was pre-planned under a 10b5-1 plan, which mitigates the immediate negative implications. Investors should hold and monitor future company performance and other insider activity rather than reacting solely to this planned divestment.

Keywords

Datadog, DDOG, Alexis Le-Quoc, CTO, insider trading, Form 4, stock sale, 10b5-1 plan, Class A Common Stock, Class B Common Stock, beneficial ownership