Dynatrace, Inc. (NYSE:DT – Get Free Report) was the target of unusually large options trading activity on Monday. Stock traders purchased 4,386 call options on the company. This is an increase of approximately 28% compared to the average daily volume of 3,440 call options.
Wall Street Analyst Weigh In
Several equities research analysts recently issued reports on the stock. DA Davidson raised their price objective on shares of Dynatrace from $60.00 to $65.00 and gave the stock a “buy” rating in a research report on Thursday, August 6th. Truist Financial boosted their target price on shares of Dynatrace from $60.00 to $70.00 and gave the company a “buy” rating in a report on Wednesday, October 21st. Zacks Research cut shares of Dynatrace from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, August 11th. Cantor Fitzgerald increased their price target on shares of Dynatrace from $47.00 to $65.00 and gave the company a “neutral” rating in a research note on Friday, October 30th. Finally, Needham & Company LLC cut their price target on shares of Dynatrace from $68.00 to $65.00 and set a “buy” rating for the company in a report on Tuesday. Twenty-four 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, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $63.52.
Get Our Latest Stock Analysis on Dynatrace
Dynatrace Price Performance
NYSE:DT opened at $47.06 on Wednesday. The business’s 50-day moving average is $57.67 and its two-hundred day moving average is $44.62. The firm has a market capitalization of $13.60 billion, a PE ratio of 56.26, a price-to-earnings-growth ratio of 3.38 and a beta of 0.76. Dynatrace has a 12 month low of $31.64 and a 12 month high of $66.30.
Dynatrace (NYSE:DT – Get Free Report) last posted its quarterly earnings data on Tuesday, November 3rd. The company reported $0.54 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.49 by $0.05. Dynatrace had a net margin of 7.22% and a return on equity of 11.07%. The company had revenue of $579.92 million for the quarter, compared to analyst estimates of $568.03 million. During the same quarter last year, the firm posted $0.44 earnings per share. The business’s quarterly revenue was up 17.4% on a year-over-year basis. Equities analysts anticipate that Dynatrace will post 1.11 EPS for the current year.
Dynatrace declared that its Board of Directors has approved a share buyback program on Tuesday, November 3rd that authorizes the company to repurchase $1 billion in shares. This buyback authorization authorizes the company to reacquire up to 6.3% of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s leadership believes its shares are undervalued.
Insider Activity
In other news, EVP Bernd Greifeneder sold 50,000 shares of the stock in a transaction dated 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 completion of the sale, the executive vice president directly owned 904,846 shares in the company, valued at $51,766,239.66. This represents a 5.24% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.69% of the stock is owned by insiders.
Institutional Inflows and Outflows
A number of large investors have recently modified their holdings of DT. Pictet Asset Management Holding SA raised its holdings in Dynatrace by 12.0% during the 3rd quarter. Pictet Asset Management Holding SA now owns 14,293,302 shares of the company’s stock worth $825,243,000 after buying an additional 1,531,104 shares during the period. Wellington Management Group LLP increased its stake in shares of Dynatrace by 23.5% during the 2nd quarter. Wellington Management Group LLP now owns 11,528,792 shares of the company’s stock worth $506,229,000 after purchasing an additional 2,191,497 shares during the last quarter. Bank of America Corp DE boosted its stake in shares of Dynatrace by 304.7% during the 1st quarter. Bank of America Corp DE now owns 9,357,612 shares of the company’s stock worth $346,044,000 after acquiring an additional 7,045,591 shares in the last quarter. First Trust Advisors LP lifted its stake in shares of Dynatrace by 706.8% in the first quarter. First Trust Advisors LP now owns 6,801,507 shares of the company’s stock worth $251,520,000 after buying an additional 5,958,505 shares during the last quarter. Finally, Amundi increased its stake in shares of Dynatrace by 461.5% in the first quarter. Amundi now owns 6,238,938 shares of the company’s stock worth $230,716,000 after purchasing an additional 5,127,910 shares during the period. 94.28% of the stock is owned by institutional investors and hedge funds.
Dynatrace News Roundup
Here are the key news stories impacting Dynatrace this week:
- Positive Sentiment: Fiscal Q2 adjusted earnings of $0.54 per share topped the $0.49 consensus, and revenue of $579.92 million exceeded estimates of $568.03 million. Revenue grew 17.4% year over year, indicating continued demand and growth. Dynatrace Reports Second Quarter Fiscal Year 2027 Financial Results
- Positive Sentiment: Dynatrace and CrowdStrike announced a strategic security and observability partnership, which could broaden the value of their offerings for enterprise customers. CrowdStrike and Dynatrace announce security and observability partnership
- Neutral Sentiment: Needham lowered its price target from $68 to $65, and BTIG cut its target from $73 to $63. Both firms maintained buy ratings, suggesting continued optimism but more conservative valuation expectations. Needham analyst ratings
- Negative Sentiment: Despite beating quarterly estimates, Dynatrace’s outlook was described as mixed. Investor concern about guidance appears to have outweighed the strong results and helps explain why the stock moved lower. Dynatrace drops as it offers mixed guidance after Q2 results
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.
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