Investment analysts at Rosenblatt Securities have revised their price target for Dynatrace (NYSE:DT), lowering it from $67.00 to $60.00. This adjustment, detailed in a research note issued on November 6, 2023, maintains a “buy” rating for the stock. The new price target suggests a potential upside of 57.56% based on the company’s previous close.
Other financial institutions have echoed similar sentiments regarding Dynatrace. On the same day, Scotiabank also reduced its price target for the company, matching the new figure of $60.00, while assigning an “outperform” rating. Earlier, on January 12, KeyCorp cut its price target from $69.00 to $60.00, maintaining an “overweight” designation for the stock.
In the past few months, various analysts have provided their assessments of Dynatrace. For instance, Weiss Ratings reaffirmed a “hold (c)” rating, while Wall Street Zen shifted its stance from “buy” to “hold” on October 3. Additionally, Cantor Fitzgerald adjusted its price target from $57.00 to $51.00, classifying the stock as “neutral.”
Currently, eighteen investment analysts rate Dynatrace as a “buy,” while six maintain a “hold” rating. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” with an average target price of $59.41.
Dynatrace Financial Highlights
On November 5, Dynatrace released its quarterly earnings, reporting earnings per share (EPS) of $0.44. This figure exceeded analysts’ expectations of $0.41 by $0.03. The company achieved a net margin of 27.33% and a return on equity of 9.24%. Revenue for the quarter reached $493.85 million, surpassing estimates of $487.33 million. This marks an 18.1% increase in revenue compared to the same quarter the previous year.
Looking ahead, Dynatrace has set its guidance for Q3 2026 at an EPS range of $0.400 to $0.420, with a fiscal year 2026 guidance of $1.620 to $1.640. Analysts predict that the company will post an EPS of $0.68 for the current year.
Insider Trading Activity
Recent insider trading at Dynatrace has raised eyebrows. On November 17, Daniel S. Yates, the Chief Accounting Officer, sold 2,000 shares at an average price of $46.69, totaling $93,380.00. Post-transaction, Yates holds 23,380 shares, valued at approximately $1,091,612.20, reflecting a 7.88% reduction in his stake.
In another notable transaction, Rick M. McConnell, the Chief Executive Officer, sold 30,000 shares on November 11 for an average price of $46.61, amounting to $1,398,300.00. After this sale, McConnell retains 108,125 shares, valued at around $5,039,706.25, indicating a 21.72% decrease in his ownership.
In the last 90 days, insiders have sold a total of 39,843 shares valued at $1,846,424, with insiders currently holding 0.57% of the company’s stock.
Institutional Investor Movements
Recent changes among institutional investors reflect growing interest in Dynatrace. Wellington Management Group LLP significantly increased its position by 719.3% in the third quarter, now owning 7,340,127 shares valued at $355,629,000. Scge Management L.P. acquired a new position in Dynatrace during the second quarter, with an investment of approximately $155,858,000.
Additionally, Pictet Asset Management Holding SA raised its holdings by 16.5% in the fourth quarter, now owning 14,648,533 shares worth $634,985,000. Norges Bank also entered a new position in the second quarter, investing around $87,620,000.
Overall, institutional investors and hedge funds collectively own 94.28% of Dynatrace’s stock, indicating strong institutional confidence in the company’s future prospects.
About Dynatrace
Dynatrace is a global leader in software intelligence, focusing on application performance management (APM), cloud infrastructure monitoring, and digital experience management. Its flagship product, the Dynatrace Software Intelligence Platform, employs artificial intelligence to deliver real-time observability across diverse environments, including on-premises data centers and various cloud configurations.
Organizations utilize Dynatrace to identify anomalies, resolve performance issues, and enhance user experiences through automated root-cause analysis facilitated by its innovative engine, Davis. The platform encompasses modules for comprehensive application monitoring, digital experience monitoring, infrastructure monitoring, and business analytics.
