Form 4: Datadog CTO Sells $8.3M in Shares, Makes Charitable Gift

Datadog CTO Alexis Le-Quoc reported significant stock transactions, including sales under a 10b5-1 plan and a substantial charitable donation.

Summary

• Alexis Le-Quoc, Datadog's Chief Technology Officer and a Director, reported multiple transactions involving Datadog Class A and Class B common stock.
• On December 5, 2025, 123,000 shares of Class B Common Stock held by the Alexis Le-Quoc Revocable Trust were converted into Class A Common Stock, and subsequently, 123,000 shares of Class A Common Stock were donated to a donor-advised fund for charitable purposes.
• On December 8, 2025, 18,750 stock options with an exercise price of $10.74 were exercised, resulting in the acquisition of 18,750 shares of Class B Common Stock.
• Also on December 8, 2025, 10,688 shares of Class B Common Stock were converted into Class A Common Stock.
• A total of 53,912 shares of Class A Common Stock were sold on December 8, 2025, under a pre-arranged 10b5-1 plan dated June 13, 2025.
• The sales occurred at weighted-average prices ranging from $153.235 to $155.0094 per share, totaling approximately $8.31 million.
• Following these transactions, Alexis Le-Quoc directly holds 295,448 Class A shares, 2,704,984 Class B shares, and 412,500 stock options, and indirectly holds 169 Class A shares and 6,203,835 Class B shares through a trust.

Sentiment

Score: 5

Explanation: The sentiment is neutral. While significant insider selling by a CTO could be a negative signal, the transactions were conducted under a pre-arranged 10b5-1 plan, mitigating concerns of opportunistic selling. Additionally, a substantial charitable donation was made, balancing the overall perception.

Positives

• The sales of Class A Common Stock were conducted under a pre-arranged 10b5-1 plan, indicating a scheduled transaction rather than a reaction to new, non-public information.
• A significant charitable donation of 123,000 Class A shares was made to a donor-advised fund.

Negatives

• The Chief Technology Officer sold a substantial amount of shares, totaling approximately $8.31 million, which could be perceived negatively by some investors.

Risks

• No specific risks were mentioned in the filing beyond the inherent market risks associated with stock ownership and executive transactions.

Future Outlook

na

Industry Context

na

Stakeholder Impact

• Shareholders may observe the significant insider selling, but the existence of a 10b5-1 plan suggests these were pre-planned transactions, potentially reducing concerns about management's immediate outlook on the company.

Key Dates

Recommendation

The Form 4 filing details insider transactions, including significant sales by the CTO. While insider selling can sometimes be a bearish signal, these sales were executed under a pre-established 10b5-1 plan, indicating they were not based on new, non-public information. The filing also notes a substantial charitable donation. Without additional fundamental company information, these transactions alone do not warrant a change in investment thesis, thus a 'hold' recommendation is appropriate for existing investors to await further financial disclosures.

Keywords

Datadog, DDOG, Form 4, insider trading, stock sale, CTO, Alexis Le-Quoc, 10b5-1 plan, charitable donation, equity transactions, executive compensation