Dynatrace (NYSE:DT) Cut to “Neutral” at Guggenheim

Guggenheim downgraded shares of Dynatrace (NYSE:DT) from a buy rating to a neutral rating in a research report released on Wednesday, MarketBeat.com reports.

Several other equities research analysts also recently issued reports on DT. Rothschild & Co Redburn assumed coverage on shares of Dynatrace in a research report on Thursday, April 23rd. They set a “neutral” rating and a $40.00 price objective for the company. Rosenblatt Securities reduced their target price on shares of Dynatrace from $60.00 to $52.00 and set a “buy” rating for the company in a report on Friday, May 1st. Robert W. Baird set a $47.00 target price on shares of Dynatrace in a report on Tuesday, February 10th. KeyCorp increased their target price on shares of Dynatrace from $50.00 to $52.00 and gave the stock an “overweight” rating in a report on Tuesday, February 10th. Finally, Stifel Nicolaus set a $51.00 target price on shares of Dynatrace in a report on Monday, February 9th. Twenty equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $46.50.

Dynatrace Stock Up 3.3%

Shares of DT stock opened at $38.36 on Wednesday. The firm has a fifty day moving average of $37.12 and a 200-day moving average of $40.38. Dynatrace has a 12-month low of $31.64 and a 12-month high of $57.55. The company has a market capitalization of $11.44 billion, a price-to-earnings ratio of 71.04, a P/E/G ratio of 2.27 and a beta of 0.70.

Dynatrace (NYSE:DT) last issued its quarterly earnings data on Wednesday, May 13th. The company reported $0.41 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.39 by $0.02. Dynatrace had a net margin of 8.06% and a return on equity of 10.37%. The company had revenue of $531.72 million during the quarter, compared to the consensus estimate of $521.01 million. During the same quarter in the prior year, the firm earned $0.33 earnings per share. The firm’s revenue was up 19.4% compared to the same quarter last year. Dynatrace has set its FY 2027 guidance at 1.930-1.950 EPS and its Q1 2027 guidance at 0.440-0.450 EPS. On average, equities analysts expect that Dynatrace will post 1.07 EPS for the current year.

Dynatrace announced that its Board of Directors has approved a share repurchase plan on Monday, February 9th that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the company to buy up to 9.8% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s board of directors believes its stock is undervalued.

Insider Buying and Selling

In other news, EVP Stephen A. Mcmahon purchased 3,000 shares of the business’s stock in a transaction on Tuesday, March 3rd. The stock was purchased at an average price of $35.75 per share, for a total transaction of $107,250.00. Following the completion of the purchase, the executive vice president directly owned 3,454 shares in the company, valued at $123,480.50. The trade was a 660.79% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 0.57% of the stock is currently owned by corporate insiders.

Institutional Trading of Dynatrace

A number of large investors have recently added to or reduced their stakes in DT. NewEdge Advisors LLC lifted its stake in Dynatrace by 25.3% in the first quarter. NewEdge Advisors LLC now owns 9,135 shares of the company’s stock valued at $431,000 after acquiring an additional 1,846 shares during the last quarter. Jones Financial Companies Lllp lifted its stake in shares of Dynatrace by 19.2% during the 1st quarter. Jones Financial Companies Lllp now owns 2,161 shares of the company’s stock worth $102,000 after buying an additional 348 shares during the last quarter. Northwestern Mutual Wealth Management Co. lifted its stake in shares of Dynatrace by 21.3% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 1,548 shares of the company’s stock worth $85,000 after buying an additional 272 shares during the last quarter. Invesco Ltd. lifted its stake in shares of Dynatrace by 38.9% during the 2nd quarter. Invesco Ltd. now owns 793,630 shares of the company’s stock worth $43,816,000 after buying an additional 222,395 shares during the last quarter. Finally, Marshall Wace LLP acquired a new stake in shares of Dynatrace during the 2nd quarter worth about $410,000. Institutional investors and hedge funds own 94.28% of the company’s stock.

Trending Headlines about Dynatrace

Here are the key news stories impacting Dynatrace this week:

• Positive Sentiment: Dynatrace reported fiscal Q4 EPS of $0.41, topping estimates of $0.39, and revenue of $531.7 million, up 19.4% year over year, while recurring subscription revenue remained very high and free cash flow stayed strong. Dynatrace shares slide despite quarterly earnings beat
• Positive Sentiment: Several brokers kept bullish views despite trimming targets, including Scotiabank, JPMorgan, Citigroup, and BMO, signaling continued confidence in Dynatrace’s long-term software and observability franchise. Scotiabank Sticks to Their Buy Rating for Dynatrace (DT)
• Neutral Sentiment: Analyst commentary today was mostly mixed-to-bullish overall, with some articles highlighting favorable tech-stock sentiment for Dynatrace but also noting conflicting views across analysts. Analysts Have Conflicting Sentiments on These Technology Companies
• Neutral Sentiment: Some commentary suggested Dynatrace could benefit from broader software and AI observability trends, but these were more thematic than company-specific catalysts. Can Dynatrace Benefit From Russell 1000 Software Trends?
• Negative Sentiment: Despite the earnings beat, investors were disappointed by mixed FY2027 and near-term guidance, including concerns about slower ARR growth and a softer first-quarter outlook. Dynatrace stock falls on fiscal Q4 earnings, mixed 2027 guidance
• Negative Sentiment: Wall Street lowered several price targets after the report, including JPMorgan, Citigroup, Scotiabank, and BMO, reflecting a more cautious stance on near-term upside. Dynatrace (NYSE:DT) Price Target Lowered to $45.00 at JPMorgan Chase & Co.

Dynatrace Company Profile

Dynatrace is a global software intelligence company specializing in application performance management (APM), cloud infrastructure monitoring, and digital experience management. Its flagship offering, the Dynatrace Software Intelligence Platform, leverages artificial intelligence to provide real-time observability across distributed environments, including on-premises data centers, private clouds, public clouds and hybrid deployments. Organizations rely on Dynatrace to detect anomalies, troubleshoot performance issues and optimize end-user experiences through automated root-cause analysis powered by the company’s engine, Davis.

The Dynatrace platform comprises modules for full-stack application monitoring, digital experience monitoring, infrastructure monitoring and business analytics.