Form 4: Datadog CTO Sells Shares Under 10b5-1 Plan

Datadog's Chief Technology Officer, Alexis Le-Quoc, executed a pre-arranged 10b5-1 trading plan, selling 53,912 Class A common shares.

Summary

• Alexis Le-Quoc, Datadog's Chief Technology Officer and Director, engaged in transactions on March 10, 2026.
• He exercised stock options for 18,750 shares of Class B Common Stock.
• He converted 53,912 shares of Class B Common Stock into Class A Common Stock.
• A total of 53,912 Class A Common Stock shares were sold under a pre-arranged 10b5-1 trading plan established on June 13, 2025.
• The sales occurred at weighted-average prices ranging from $122.5421 to $128.5967 per share.
• Following these transactions, Le-Quoc directly holds 437,257 Class A Common Stock and 2,641,152 Class B Common Stock.
• Indirectly, through the Alexis Le-Quoc Revocable Trust, he holds 169 Class A Common Stock and 6,203,835 Class B Common Stock.
• Each Class B Common Stock is convertible into one Class A Common Stock and has no expiration date, with automatic conversion under certain conditions.
• The stock option exercised was fully vested and exercisable.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a neutral to slightly positive event. While an executive sale reduces direct ownership, its execution under a pre-planned 10b5-1 strategy mitigates concerns about insider sentiment, and the sales occurred at favorable prices.

Positives

• The transactions were executed under a pre-arranged 10b5-1 trading plan, indicating planned liquidity rather than a reaction to new, non-public information.
• The stock options exercised were fully vested, reflecting earned compensation.
• Sales occurred at prices ranging from $122.5421 to $128.5967, indicating a healthy stock price for the sales.

Negatives

• A significant number of shares (53,912) were sold by a key executive, which could be perceived as a reduction in direct exposure to the company's future performance, although it is part of a pre-planned strategy.

Future Outlook

NA

Industry Context

StockSavvy.ai notes that executive sales under 10b5-1 plans are common practice for managing personal finances and diversifying portfolios, especially for long-tenured executives like Datadog's CTO. These pre-scheduled sales typically do not signal a change in management's outlook on the company's future performance, unlike unscheduled sales.

Stakeholder Impact

• Shareholders: May view the executive sale as a slight negative due to reduced insider ownership, but the 10b5-1 plan context generally alleviates concerns about management confidence.
• Employees: No direct impact mentioned.
• Customers/Suppliers/Creditors: No direct impact mentioned.

Key Dates

Recommendation

The executive's sale of shares was conducted under a pre-arranged 10b5-1 plan, which indicates a planned liquidity event rather than a reaction to new material information. While it reduces direct insider ownership, it does not suggest a change in the company's fundamental outlook. Therefore, the filing itself does not provide a strong basis for a change in investment thesis, warranting a 'hold' recommendation.

Keywords

Datadog, DDOG, Alexis Le-Quoc, CTO, Insider Trading, Form 4, Stock Sale, 10b5-1 Plan, Executive Compensation, Class A Common Stock, Class B Common Stock, Stock Options