Dynatrace (NYSE:DT) Stock Price Target Cut by Rosenblatt Securities

Dynatrace (NYSE:DT) had its target price lowered by investment analysts at Rosenblatt Securities from $70.00 to $65.00 in a research report issued on Wednesday, Benzinga reports. The firm currently has a “buy” rating on the stock. Rosenblatt Securities‘s price objective suggests a potential upside of 38.12% from the company’s previous close.

A number of other research firms also recently weighed in on DT. Needham & Company LLC decreased their target price on Dynatrace from $68.00 to $65.00 and set a “buy” rating on the stock in a research report on Tuesday. Oppenheimer upped their price target on Dynatrace from $60.00 to $71.00 and gave the company an “outperform” rating in a report on Thursday, September 24th. DA Davidson raised their price objective on Dynatrace from $60.00 to $65.00 and gave the stock a “buy” rating in a research report on Thursday, August 6th. Citigroup lifted their price objective on Dynatrace from $65.00 to $75.00 and gave the stock a “buy” rating in a report on Tuesday, October 27th. Finally, BMO Capital Markets boosted 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. Twenty-four research analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the stock. According to MarketBeat.com, Dynatrace currently has an average rating of “Moderate Buy” and a consensus target price of $63.34.

Dynatrace Price Performance

Shares of Dynatrace stock opened at $47.06 on Wednesday. The company has a market cap of $13.60 billion, a PE ratio of 94.12, a price-to-earnings-growth ratio of 3.38 and a beta of 0.76. The firm has a fifty day moving average price of $57.67 and a two-hundred day moving average price of $44.62. Dynatrace has a fifty-two week low of $31.64 and a fifty-two week high of $66.30.

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

Dynatrace declared that its Board of Directors has approved a share repurchase program on Tuesday, November 3rd that allows the company to repurchase $1 billion in outstanding shares. This buyback authorization allows the company to buy up to 6.3% of its shares through open market purchases. Stock buyback programs are typically a sign that the company’s management believes its stock is undervalued.

Insiders Place Their Bets

In other Dynatrace 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 sale, the executive vice president directly owned 904,846 shares of the company’s stock, valued at approximately $51,766,239.66. The trade was a 5.24% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.69% of the company’s stock.

Hedge Funds Weigh In On Dynatrace

Several hedge funds and other institutional investors have recently modified their holdings of DT. Brighton Jones LLC grew its position in Dynatrace by 15.0% in the third quarter. Brighton Jones LLC now owns 18,239 shares of the company’s stock valued at $1,053,000 after acquiring an additional 2,378 shares during the period. StoneX Group Inc. raised its stake in Dynatrace by 54.5% during the third quarter. StoneX Group Inc. now owns 10,777 shares of the company’s stock worth $607,000 after acquiring an additional 3,801 shares in the last quarter. Pictet Asset Management Holding SA lifted its holdings in shares of Dynatrace by 12.0% during the third quarter. Pictet Asset Management Holding SA now owns 14,293,302 shares of the company’s stock valued at $825,243,000 after acquiring an additional 1,531,104 shares during the period. Heritage Family Offices LLP bought a new position in shares of Dynatrace during the third quarter valued at $134,000. Finally, Allegiance Financial Group Advisory Services LLC bought a new position in shares of Dynatrace during the third quarter valued at $392,000. Institutional investors own 94.28% of the company’s stock.

Key Stories Impacting Dynatrace

Here are the key news stories impacting Dynatrace this week:

• Positive Sentiment: Fiscal Q2 adjusted earnings of $0.54 per share beat the $0.49 consensus, while revenue of $579.9 million exceeded estimates of $568.0 million and grew 17.4% year over year. Dynatrace Q2 results
• Positive Sentiment: The board authorized up to $1 billion in share repurchases, equivalent to as much as 6.3% of shares outstanding. Buybacks can support per-share results and may signal management sees value in the stock.
• Positive Sentiment: Dynatrace and CrowdStrike announced a strategic partnership combining security and observability capabilities, which could strengthen their offerings to enterprise customers. Dynatrace and CrowdStrike partnership
• Neutral Sentiment: Needham cut its price target to $65 from $68, and BTIG lowered its target to $63 from $73; both firms kept Buy ratings. The cuts reflect more cautious expectations, while the retained ratings indicate continued analyst optimism.
• Negative Sentiment: Shares fell sharply in reaction to trimmed profit and cash-flow guidance. The acquisition’s impact on the outlook overshadowed the quarterly beat, suggesting investors are concerned about near-term costs or returns. Dynatrace outlook and share 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.