Dynatrace, Inc. (NYSE:DT) Stock Has Consensus Price Target of $63.97

Shares of Dynatrace, Inc. (NYSE:DT) have received a consensus rating of “Moderate Buy” from the thirty-two research firms that are presently covering the firm, MarketBeat.com reports. Eight investment analysts have rated the stock with a hold rating and twenty-four have assigned a buy rating to the company. The average 12-month target price among brokerages that have issued a report on the stock in the last year is $62.00.

A number of brokerages recently weighed in on DT. BMO Capital Markets upped their price target on shares of Dynatrace from $60.00 to $62.00 and gave the stock an “outperform” rating in a research report on Tuesday, September 15th. The Goldman Sachs Group restated a “buy” rating and set a $71.00 price objective on shares of Dynatrace in a research note on Thursday, October 15th. BTIG Research dropped their price objective on Dynatrace from $73.00 to $63.00 and set a “buy” rating on the stock in a report on Tuesday. Citigroup cut their target price on Dynatrace from $75.00 to $70.00 and set a “buy” rating on the stock in a research report on Wednesday. Finally, Royal Bank Of Canada reduced their target price on Dynatrace from $73.00 to $68.00 and set an “outperform” rating for the company in a research note on Wednesday.

Dynatrace News Summary

Here are the key news stories impacting Dynatrace this week:

• Positive Sentiment: Dynatrace authorized a $1 billion share repurchase, covering up to 6.3% of its shares. Buybacks can signal management confidence and support per-share results. Share buyback report
• Positive Sentiment: Fiscal Q2 revenue of $579.9 million and adjusted EPS of $0.54 exceeded consensus estimates; revenue grew 17.4% year over year. Dynatrace Q2 results
• Neutral Sentiment: Several firms lowered their price targets but kept positive ratings: UBS to $75 and Citi to $70, both Buy; Barclays to $61, Overweight; and RBC to $68, Outperform. The retained ratings suggest analysts still see upside, though their reduced targets reflect more cautious expectations. UBS rating information
• Negative Sentiment: The main concern is the company’s reduced profit outlook, with reports also pointing to a weaker cash-flow forecast and acquisition-related effects. That outlook appears to have outweighed the quarterly beat and buyback. Earnings and outlook report
• Negative Sentiment: More target reductions—including Wells Fargo to $65, BMO to $60, and Wedbush to $50, which has a Neutral rating—reinforce concerns that near-term expectations have come down. BMO price-target update

Insider Transactions at Dynatrace

In related news, EVP Bernd Greifeneder sold 50,000 shares of the company’s stock in a transaction on Friday, September 18th. The shares were sold at an average price of $57.21, for a total value of $2,860,500.00. Following the sale, the executive vice president directly owned 904,846 shares of the company’s stock, valued at $51,766,239.66. This represents a 5.24% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.69% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Bank of America Corp DE boosted its holdings in shares of Dynatrace by 304.7% in the 1st quarter. Bank of America Corp DE now owns 9,357,612 shares of the company’s stock valued at $346,044,000 after buying an additional 7,045,591 shares during the period. First Trust Advisors LP grew its position in shares of Dynatrace by 706.8% during the 1st quarter. First Trust Advisors LP now owns 6,801,507 shares of the company’s stock valued at $251,520,000 after buying an additional 5,958,505 shares during the last quarter. Arrowstreet Capital Limited Partnership bought a new stake in shares of Dynatrace during the 1st quarter valued at about $190,890,000. Amundi raised its stake in Dynatrace by 461.5% during the first quarter. Amundi now owns 6,238,938 shares of the company’s stock worth $230,716,000 after acquiring an additional 5,127,910 shares during the period. Finally, Bank of New York Mellon Corp acquired a new stake in Dynatrace during the second quarter worth about $114,885,000. 94.28% of the stock is owned by institutional investors and hedge funds.

Dynatrace Stock Down 0.7%

Shares of NYSE DT opened at $46.69 on Monday. The firm has a market cap of $13.49 billion, a P/E ratio of 43.55, a price-to-earnings-growth ratio of 2.88 and a beta of 0.76. The company has a debt-to-equity ratio of 0.62, a quick ratio of 1.21 and a current ratio of 2.09. Dynatrace has a 1 year low of $31.64 and a 1 year high of $66.30. The firm’s 50 day moving average price is $57.60 and its 200 day moving average price is $44.66.

Dynatrace (NYSE:DT) last issued its quarterly earnings results on Tuesday, November 3rd. The company reported $0.54 earnings per share for the quarter, topping analysts’ consensus estimates of $0.49 by $0.05. Dynatrace had a return on equity of 12.73% and a net margin of 7.42%. The company had revenue of $579.92 million for the quarter, compared to analyst estimates of $568.03 million. During the same quarter in the prior year, the company posted $0.44 EPS. The business’s revenue for the quarter was up 17.4% compared to the same quarter last year. As a group, sell-side analysts anticipate that Dynatrace will post 1.11 earnings per share for the current year.

Dynatrace announced that its Board of Directors has initiated a share repurchase program on Tuesday, November 3rd that authorizes the company to repurchase $1 billion in outstanding shares. This repurchase authorization authorizes the company to buy up to 6.3% of its shares through open market purchases. Stock repurchase programs are often a sign that the company’s board believes its stock is undervalued.

About Dynatrace

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.