UBS Group Issues Pessimistic Forecast for Dynatrace (NYSE:DT) Stock Price

Dynatrace (NYSE:DT) had its price target lowered by equities researchers at UBS Group from $80.00 to $75.00 in a research report issued on Wednesday, Benzinga reports. The firm currently has a “buy” rating on the stock. UBS Group‘s price target would suggest a potential upside of 60.62% from the company’s previous close.

Several other equities analysts have also commented on the company. BMO Capital Markets raised their price objective on Dynatrace from $60.00 to $62.00 and gave the company an “outperform” rating in a research report on Tuesday, September 15th. Rosenblatt Securities reduced their price objective on Dynatrace from $70.00 to $65.00 and set a “buy” rating for the company in a research report on Wednesday. Truist Financial boosted their target price on Dynatrace from $60.00 to $70.00 and gave the stock a “buy” rating in a report on Wednesday, October 21st. Canaccord Genuity Group increased their target price on Dynatrace from $46.00 to $60.00 and gave the stock a “buy” rating in a research note on Thursday, August 6th. Finally, TD Cowen increased their target price on Dynatrace from $62.00 to $68.00 and gave the stock a “buy” rating in a research note on Monday, October 26th. Twenty-four research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $62.00.

Dynatrace Stock Performance

Shares of DT stock traded down $0.34 on Wednesday, hitting $46.69. 15,036,484 shares of the company’s stock traded hands, compared to its average volume of 6,710,826. The stock has a market capitalization of $13.49 billion, a price-to-earnings ratio of 93.39, a P/E/G ratio of 3.38 and a beta of 0.76. The company’s fifty day simple moving average is $57.67 and its 200 day simple moving average is $44.62. Dynatrace has a one year low of $31.64 and a one year high of $66.30.

Dynatrace (NYSE:DT) last released its quarterly earnings data on Tuesday, November 3rd. The company reported $0.54 earnings per share for the quarter, beating analysts’ consensus estimates of $0.49 by $0.05. Dynatrace had a return on equity of 11.07% and a net margin of 7.22%. The firm had revenue of $579.92 million during the quarter, compared to analyst estimates of $568.03 million. During the same quarter in the prior year, the firm posted $0.44 earnings per share. The business’s quarterly revenue 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 fiscal year.

Dynatrace announced that its board has approved a stock repurchase program on Tuesday, November 3rd that allows the company to repurchase $1 billion in shares. This repurchase authorization allows the company to repurchase up to 6.3% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company’s board of directors believes its shares are undervalued.

Insiders Place Their Bets

In other Dynatrace news, EVP Bernd Greifeneder sold 50,000 shares of the company’s 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 transaction, the executive vice president owned 904,846 shares in the company, valued at approximately $51,766,239.66. This represents a 5.24% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.69% of the company’s stock.

Institutional Trading of Dynatrace

A number of hedge funds have recently bought and sold shares of DT. CX Institutional increased its holdings in shares of Dynatrace by 1,119.0% in 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 last quarter. Mirae Asset Global Investments Co. Ltd. bought a new position in shares of Dynatrace in the 3rd quarter valued at about $39,000. Elevation Wealth Partners LLC lifted its holdings in shares of Dynatrace by 37.8% in the 3rd quarter. Elevation Wealth Partners LLC now owns 929 shares of the company’s stock valued at $54,000 after acquiring an additional 255 shares during the last quarter. EverSource Wealth Advisors LLC lifted its holdings in shares of Dynatrace by 115.7% in the 1st quarter. EverSource Wealth Advisors LLC now owns 1,512 shares of the company’s stock valued at $56,000 after acquiring an additional 811 shares during the last quarter. Finally, Provenance Wealth Advisors LLC purchased a new position in Dynatrace in the third quarter worth about $61,000. Hedge funds and other institutional investors own 94.28% of the company’s stock.

More Dynatrace News

Here are the key news stories impacting Dynatrace this week:

• Positive Sentiment: Dynatrace reported fiscal Q2 adjusted earnings of $0.54 per share, ahead of the $0.49 consensus, and revenue of about $580 million versus estimates of $568 million. Revenue grew 17.4% year over year. Dynatrace fiscal Q2 results
• Positive Sentiment: The board authorized a $1 billion share-repurchase program, allowing buybacks of up to 6.3% of shares outstanding. Repurchases could support per-share results and signal management sees value in the stock.
• Positive Sentiment: Dynatrace and CrowdStrike announced a strategic partnership combining security and observability capabilities, which may strengthen their offerings to enterprise customers. Dynatrace and CrowdStrike partnership
• Negative Sentiment: The earnings beat was overshadowed by a reduced profit and cash-flow outlook, with the acquisition weighing on the forecast. Investors appear concerned that near-term profitability and cash generation may be weaker than expected. Dynatrace earnings and outlook
• Negative Sentiment: Multiple firms cut their price targets, including Barclays ($71 to $61), Wells Fargo ($75 to $65), and BMO ($70 to $60). Most retained Buy, Overweight, or Outperform ratings, but the revisions reflect reduced expectations; Wedbush lowered its target to $50 and kept a Neutral rating.

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.