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

Dynatrace, Inc. (NYSE:DT) 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 trading hands.

DT has been the topic of a number of other research reports. Needham & Company LLC cut their price target on shares of Dynatrace from $68.00 to $65.00 and set a “buy” rating on the stock in a report on Tuesday. Rosenblatt Securities reduced their price objective on shares of Dynatrace from $70.00 to $65.00 and set a “buy” rating for the company in a research note on Wednesday. Yorkville Ives initiated coverage on shares of Dynatrace in a report on Tuesday, October 6th. They issued an “in-line” rating and a $62.00 price objective for the company. BTIG Research lowered their target price on shares of Dynatrace from $73.00 to $63.00 and set a “buy” rating on the stock in a research report on Tuesday. Finally, TD Cowen raised their target price on Dynatrace from $62.00 to $68.00 and gave the company a “buy” rating in a report on Monday, October 26th. Twenty-four investment analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, Dynatrace currently has an average rating of “Moderate Buy” and an average target price of $62.00.

Insiders Place Their Bets

In other news, EVP Bernd Greifeneder sold 50,000 shares of the firm’s stock in a transaction dated Friday, September 18th. The stock was sold at an average price of $57.21, for a total value 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. This trade represents a 5.24% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.69% of the stock is currently owned by corporate insiders.

Key Dynatrace News

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 made changes to their positions in the stock. 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 lifted its stake in Dynatrace by 23.5% in the second quarter. Wellington Management Group LLP now owns 11,528,792 shares of the company’s stock valued at $506,229,000 after buying an additional 2,191,497 shares in the last quarter. Bank of America Corp DE boosted its holdings in shares of Dynatrace by 304.7% in the first quarter. Bank of America Corp DE now owns 9,357,612 shares of the company’s stock valued at $346,044,000 after buying an additional 7,045,591 shares during the period. First Trust Advisors LP boosted its holdings 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 valued at $251,520,000 after buying an additional 5,958,505 shares during the period. Finally, Amundi increased its position in shares of Dynatrace by 461.5% during the first quarter. Amundi now owns 6,238,938 shares of the company’s stock worth $230,716,000 after acquiring an additional 5,127,910 shares in the last quarter. Institutional investors own 94.28% of the company’s stock.

Dynatrace Price Performance

The company’s 50-day moving average price is $57.60 and its 200-day moving average price is $44.66. The company has a debt-to-equity ratio of 0.62, a current ratio of 2.09 and a quick ratio of 1.21. The company has a market cap of $12.65 billion, a P/E ratio of 81.03, a P/E/G ratio of 2.88 and a beta of 0.76.

Dynatrace (NYSE:DT) last posted its quarterly earnings data on Tuesday, November 3rd. The company reported $0.54 EPS for the quarter, beating the consensus estimate of $0.49 by $0.05. Dynatrace had a net margin of 7.42% and a return on equity of 12.73%. The business had revenue of $579.92 million for the quarter, compared to analysts’ expectations of $568.03 million. During the same period in the previous year, the firm posted $0.44 EPS. The firm’s revenue was up 17.4% compared to the same quarter last year. As a group, sell-side analysts predict that Dynatrace, Inc. will post 1.11 earnings per share for the current fiscal year.

Dynatrace announced that its Board of Directors has initiated a stock buyback plan on Tuesday, November 3rd that permits the company to repurchase $1 billion in shares. This repurchase authorization permits the company to repurchase up to 6.3% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s board of directors 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.