Dynatrace (NYSE:DT) Shares Gap Down on Analyst Downgrade

Dynatrace, Inc. (NYSE:DT)’s stock price gapped down prior to trading on Tuesday after UBS Group lowered their price target on the stock from $80.00 to $75.00. The stock had previously closed at $55.13, but opened at $46.00. UBS Group currently has a buy rating on the stock. Dynatrace shares last traded at $47.3410, with a volume of 3,639,439 shares traded.

Several other equities research analysts also recently issued reports on DT. Oppenheimer increased their target price on Dynatrace from $60.00 to $71.00 and gave the stock an “outperform” rating in a research report on Thursday, September 24th. TD Cowen lifted their price target on Dynatrace from $62.00 to $68.00 and gave the company a “buy” rating in a research report on Monday, October 26th. Needham & Company LLC reduced their price target on Dynatrace from $68.00 to $65.00 and set a “buy” rating for the company in a research report on Tuesday. Canaccord Genuity Group raised their price objective on shares of Dynatrace from $46.00 to $60.00 and gave the company a “buy” rating in a research report on Thursday, August 6th. Finally, Royal Bank Of Canada cut their price objective on shares of Dynatrace from $73.00 to $68.00 and set an “outperform” rating for the company in a research report on Wednesday. Twenty-four equities research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $62.00.

Insider Activity at Dynatrace

In related news, EVP Bernd Greifeneder sold 50,000 shares of the company’s stock in a transaction that occurred 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 transaction, the executive vice president directly owned 904,846 shares in the company, valued at approximately $51,766,239.66. This represents a 5.24% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.69% of the company’s stock.

Key Headlines Impacting Dynatrace

Here are the key news stories impacting Dynatrace this week:

• Positive Sentiment: The board authorized a $1 billion share repurchase program, allowing Dynatrace to buy back up to 6.3% of its shares. The buyback may support shareholder returns and signals management sees value in the stock. Dynatrace board declares share buyback plan
• Neutral Sentiment: For Q2, Dynatrace reported adjusted EPS of $0.54 versus the $0.49 consensus and revenue of about $580 million versus estimates of about $568 million; revenue grew 17.4% year over year. However, the beat has not offset concerns about the outlook. Dynatrace earnings beat; acquisition impacts profit outlook
• Negative Sentiment: Management’s trimmed earnings guidance and lower profit/cash-flow outlook overshadowed the quarterly beat. Analysts also pointed to delayed enterprise deals as a drag on the outlook, raising questions about how quickly sales momentum can recover. Dynatrace falls on trimmed earnings guidance Delayed enterprise deals weigh on outlook
• Negative Sentiment: Several firms lowered price targets, including RBC, Citi, Wedbush, BMO, Barclays, Wells Fargo, UBS and Rosenblatt. Most of the cited firms retained positive ratings, but the broad reductions reflect more cautious assumptions after the outlook update; BTIG and Needham were also reported to have issued more pessimistic forecasts. Wedbush trims price target BTIG Research forecast

Institutional Investors Weigh In On Dynatrace

Several hedge funds have recently bought and sold shares of the stock. Illinois Municipal Retirement Fund purchased a new position in shares of Dynatrace in the third quarter valued at about $1,312,000. Lido Advisors LLC raised its stake in shares of Dynatrace by 25.3% during the third quarter. Lido Advisors LLC now owns 19,358 shares of the company’s stock valued at $1,118,000 after acquiring an additional 3,909 shares during the last quarter. New York Life Investment Management LLC boosted its holdings in shares of Dynatrace by 15.8% during the third quarter. New York Life Investment Management LLC now owns 46,830 shares of the company’s stock worth $2,704,000 after purchasing an additional 6,373 shares during the period. AlphaCore Capital LLC increased its holdings in Dynatrace by 54.9% during the 3rd quarter. AlphaCore Capital LLC now owns 10,858 shares of the company’s stock valued at $627,000 after purchasing an additional 3,848 shares during the period. Finally, Fulcrum Asset Management LLP increased its holdings in Dynatrace by 7,561.1% during the 3rd quarter. Fulcrum Asset Management LLP now owns 22,830 shares of the company’s stock valued at $1,313,000 after purchasing an additional 22,532 shares during the period. 94.28% of the stock is currently owned by institutional investors.

Dynatrace Price Performance

The business has a 50-day simple moving average of $57.60 and a 200 day simple moving average of $44.66. The firm has a market cap of $12.65 billion, a P/E ratio of 81.03, 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 (NYSE:DT) last released 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. Dynatrace had a return on equity of 12.73% and a net margin of 7.42%. The business had revenue of $579.92 million during the quarter, compared to analysts’ expectations of $568.03 million. During the same quarter last year, the business posted $0.44 EPS. The business’s revenue was up 17.4% on a year-over-year basis. On average, analysts anticipate that Dynatrace, Inc. will post 1.11 earnings per share for the current fiscal year.

Dynatrace announced that its board has authorized a stock repurchase plan on Tuesday, November 3rd that authorizes the company to buy back $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 plans are typically an indication that the company’s leadership believes its stock is undervalued.

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.