Wedbush Has Lowered Expectations for Dynatrace (NYSE:DT) Stock Price

Dynatrace (NYSE:DT) had its target price lowered by Wedbush from $54.00 to $50.00 in a research note issued to investors on Wednesday, Benzinga reports. The firm presently has a “neutral” rating on the stock. Wedbush‘s target price indicates a potential upside of 5.99% from the stock’s current price.

DT has been the topic of several other research reports. Royal Bank Of Canada boosted their target price on Dynatrace from $59.00 to $73.00 and gave the company an “outperform” rating in a research note on Monday, October 12th. Yorkville Ives assumed coverage on shares of Dynatrace in a research note on Tuesday, October 6th. They set an “in-line” rating and a $62.00 price target for the company. Barclays lifted their price objective on shares of Dynatrace from $60.00 to $71.00 and gave the company an “overweight” rating in a report on Tuesday, October 13th. UBS Group boosted their price objective on shares of Dynatrace from $74.00 to $80.00 and gave the stock a “buy” rating in a research report on Friday, October 23rd. Finally, Oppenheimer increased their target price on shares of Dynatrace from $60.00 to $71.00 and gave the stock an “outperform” rating in a report on Thursday, September 24th. Twenty-four analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $63.21.

Dynatrace Price Performance

DT opened at $47.17 on Wednesday. The business’s 50-day moving average price is $57.67 and its two-hundred day moving average price is $44.62. Dynatrace has a 1 year low of $31.64 and a 1 year high of $66.30. The company has a market capitalization of $13.63 billion, a price-to-earnings ratio of 93.72, a P/E/G ratio of 3.38 and a beta of 0.76.

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

Dynatrace announced that its Board of Directors has initiated a stock buyback plan on Tuesday, November 3rd that permits the company to repurchase $1 billion in shares. This repurchase authorization permits the company to repurchase up to 6.3% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s board of directors believes its stock is undervalued.

Insiders Place Their Bets

In other news, EVP Bernd Greifeneder sold 50,000 shares of Dynatrace stock in a transaction that occurred on Friday, September 18th. The stock was 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 directly owned 904,846 shares in the company, valued at approximately $51,766,239.66. The trade was a 5.24% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed 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 institutional investors and hedge funds have recently bought and sold shares of the stock. Mirae Asset Global Investments Co. Ltd. acquired a new position in shares of Dynatrace in the third quarter valued at approximately $39,000. CX Institutional increased its position in Dynatrace by 1,119.0% during the 2nd quarter. CX Institutional now owns 707 shares of the company’s stock worth $31,000 after buying an additional 649 shares during the period. Elevation Wealth Partners LLC lifted its holdings in shares of Dynatrace by 37.8% during the third quarter. Elevation Wealth Partners LLC now owns 929 shares of the company’s stock worth $54,000 after buying an additional 255 shares in the last quarter. Provenance Wealth Advisors LLC bought a new stake in shares of Dynatrace in the third quarter valued at about $61,000. Finally, Root Financial Partners LLC acquired a new position in shares of Dynatrace in the third quarter valued at about $86,000. Institutional investors and hedge funds own 94.28% of the company’s stock.

Key Headlines Impacting Dynatrace

Here are the key news stories impacting Dynatrace this week:

• Positive Sentiment: Q2 adjusted earnings of $0.54 per share beat the $0.49 consensus, while revenue of $579.92 million topped estimates of $568.03 million and grew 17.4% year over year. Dynatrace Q2 results
• Positive Sentiment: The board authorized a $1 billion share repurchase program, which could support shareholder returns and signal management confidence in the company’s valuation.
• Positive Sentiment: Dynatrace’s strategic partnership with CrowdStrike links its observability platform with CrowdStrike’s security capabilities, potentially strengthening its offering to enterprise customers. Partnership announcement
• Neutral Sentiment: Rosenblatt, Needham, and BTIG lowered their price targets but maintained Buy ratings, indicating continued optimism alongside more cautious estimates.
• Negative Sentiment: The earnings beat was overshadowed by reduced profit and cash-flow expectations. Reports attributed the outlook pressure in part to acquisition-related impacts, raising concerns that near-term profitability may be weaker than investors expected. Outlook and stock reaction

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.