Needham & Company LLC Issues Pessimistic Forecast for Dynatrace (NYSE:DT) Stock Price

Dynatrace (NYSE:DT) had its target price dropped by analysts at Needham & Company LLC from $68.00 to $65.00 in a report released on Tuesday, Benzinga reports. The brokerage presently has a “buy” rating on the stock. Needham & Company LLC‘s price objective suggests a potential upside of 32.34% from the company’s current price.

DT has been the subject of several other research reports. Scotiabank reiterated an “outperform” rating and issued a $61.00 target price on shares of Dynatrace in a research note on Thursday, August 6th. Yorkville Ives started coverage on shares of Dynatrace in a research report on Tuesday, October 6th. They set an “in-line” rating and a $62.00 price target on the stock. Wedbush cut shares of Dynatrace from an “outperform” rating to a “neutral” rating and set a $54.00 price target on the stock. in a report on Thursday, September 10th. Rosenblatt Securities upped their price objective on shares of Dynatrace from $62.00 to $70.00 and gave the stock a “buy” rating in a research report on Thursday, October 29th. Finally, The Goldman Sachs Group reiterated a “buy” rating and issued a $71.00 price objective on shares of Dynatrace in a research note on Thursday, October 15th. Twenty-four analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company. According to data from MarketBeat.com, Dynatrace currently has a consensus rating of “Moderate Buy” and a consensus target price of $63.52.

Dynatrace Price Performance

Shares of NYSE:DT traded down $6.01 during trading on Tuesday, reaching $49.12. 11,352,307 shares of the stock were exchanged, compared to its average volume of 6,615,201. Dynatrace has a 1-year low of $31.64 and a 1-year high of $66.30. The stock has a fifty day moving average of $57.71 and a two-hundred day moving average of $44.59. The firm has a market cap of $14.19 billion, a price-to-earnings ratio of 98.06, a price-to-earnings-growth ratio of 3.85 and a beta of 0.77.

Dynatrace (NYSE:DT) last posted its quarterly earnings results on Tuesday, November 3rd. The company reported $0.54 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.49 by $0.05. Dynatrace had a net margin of 7.22% and a return on equity of 11.07%. The business had revenue of $579.92 million during the quarter, compared to the consensus estimate of $568.03 million. During the same quarter last year, the firm posted $0.44 EPS. Dynatrace’s revenue was up 17.4% compared to the same quarter last year. Sell-side analysts forecast that Dynatrace will post 1.11 EPS for the current year.

Insider Buying and Selling

In other Dynatrace news, EVP Bernd Greifeneder sold 50,000 shares of the stock in a transaction dated Friday, September 18th. The shares were sold at an average price of $57.21, for a total transaction of $2,860,500.00. Following the completion of the transaction, the executive vice president owned 904,846 shares in the company, valued at $51,766,239.66. This trade represents a 5.24% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.69% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in DT. Argent Capital Management LLC purchased a new stake in Dynatrace during the third quarter valued at about $21,868,000. Wellington Management Group LLP boosted its holdings in Dynatrace by 23.5% during the 2nd quarter. Wellington Management Group LLP now owns 11,528,792 shares of the company’s stock valued at $506,229,000 after acquiring an additional 2,191,497 shares during the period. Hsbc Holdings PLC boosted its holdings in Dynatrace by 12.0% during the 4th quarter. Hsbc Holdings PLC now owns 243,259 shares of the company’s stock valued at $10,568,000 after acquiring an additional 26,129 shares during the period. B.A. Schrock Wealth Management Inc. bought a new position in Dynatrace during the 3rd quarter worth approximately $1,695,000. Finally, Globeflex Capital L P bought a new position in Dynatrace during the 2nd quarter worth approximately $5,717,000. Hedge funds and other institutional investors own 94.28% of the company’s stock.

Key Stories Impacting Dynatrace

Here are the key news stories impacting Dynatrace this week:

• Positive Sentiment: Dynatrace reported fiscal second-quarter earnings of $0.54 per share, above the $0.49 analyst consensus, while revenue reached approximately $579.9 million, exceeding estimates of $568.0 million and rising 17.4% year over year. Dynatrace Reports Second Quarter Fiscal Year 2027 Financial Results
• Positive Sentiment: The company announced a strategic partnership with CrowdStrike to combine security and observability capabilities, potentially strengthening Dynatrace’s enterprise offering and expanding cross-selling opportunities. CrowdStrike and Dynatrace announce security and observability partnership
• Positive Sentiment: A brokerage raised its price target for DT to $65, indicating continued confidence in the company’s longer-term prospects. Dynatrace Price Target Raised to $65.00
• Neutral Sentiment: Unusually high call-option activity before earnings showed bullish positioning among some traders, but options activity does not necessarily reflect fundamental changes. Traders purchased 4,386 call options, about 28% above typical daily volume.
• Negative Sentiment: Despite the earnings and revenue beats, management’s forward guidance was viewed as mixed. Investors appear concerned that the outlook may imply slower growth or less upside than expected, prompting a sharp selloff after the results. Dynatrace crashes as it offers mixed guidance after Q2 results

Dynatrace Company Profile

Dynatrace, Inc provides an observability and application security platform designed to help organizations monitor, analyze and optimize complex digital environments. Its software uses artificial intelligence and automation to provide visibility across applications, infrastructure, cloud services, logs, user experiences and business operations.

The company’s products support application performance monitoring, infrastructure monitoring, digital experience monitoring, log and analytics management, cloud automation and application security.