Form 4: Datadog Director Shardul Shah Sells Shares Under 10b5-1 Plan

Datadog director Shardul Shah sold shares of Class A Common Stock on October 15, 2024, under a pre-arranged 10b5-1 trading plan.

Summary

• On October 15, 2024, Shardul Shah, a director of Datadog, Inc. (DDOG), sold shares of Class A Common Stock.
• The sales were executed under a 10b5-1 trading plan established on June 14, 2024.
• A total of 6,112 shares were sold at a weighted-average price of $126.5347, with prices ranging from $125.85 to $126.84.
• An additional 1,804 shares were sold at a weighted-average price of $127.1428, with prices ranging from $126.85 to $127.84.
• Following the transactions, Shah directly owns no shares and indirectly owns 451,533 shares through the 2019 Shah Family Trust, for which he is the Trustee.
• Shah disclaims beneficial ownership of these shares except to the extent of his pecuniary interest.

Sentiment

Score: 5

Explanation: The document is a routine regulatory filing related to insider trading. The sentiment is neutral as it simply reports transactions without expressing any opinion or forward-looking statements.

Industry Context

Insider sales are a common occurrence, and the use of 10b5-1 plans allows insiders to sell shares over a period of time while avoiding concerns about trading on non-public information. The market typically views these sales in the context of the overall trading volume and the company's performance.

Comparison to Industry Standards

• Comparing this transaction to other insider sales within the software-as-a-service (SaaS) industry, it's typical for executives and directors to utilize 10b5-1 plans for orderly sales of their holdings.
• For example, executives at companies like Snowflake (SNOW) and CrowdStrike (CRWD) have also used similar plans.
• The size of the sale is relatively small compared to the overall market capitalization of Datadog, suggesting it's unlikely to have a significant impact on the stock price.

Stakeholder Impact

• The share sales could have a minor impact on shareholder sentiment, but given the use of a 10b5-1 plan, it's unlikely to cause significant concern.
• The transactions do not directly impact employees, customers, suppliers, or creditors.

Key Dates