Investment analysts at Rosenblatt Securities have lowered their price target for Dynatrace (NYSE:DT) from $67.00 to $60.00, as reported on November 6, 2023. This adjustment comes alongside a maintained “buy” rating for the stock, indicating a potential upside of 57.56% from its previous closing price.
Several other financial institutions have also revised their outlook on Dynatrace. Scotiabank similarly adjusted their price target from $67.00 to $60.00, while issuing an “outperform” rating. KeyCorp reduced their target from $69.00 to the same $60.00 and affirmed an “overweight” rating in a report dated January 12, 2024. Meanwhile, Weiss Ratings maintained a “hold (c)” rating, and Wall Street Zen downgraded Dynatrace from “buy” to “hold” on October 3, 2023. Finally, Cantor Fitzgerald lowered their target from $57.00 to $51.00, maintaining a “neutral” stance.
As it stands, eighteen investment analysts have assigned a “buy” rating to the stock, while six have given it a “hold” rating. According to data from MarketBeat.com, Dynatrace currently holds a consensus rating of “Moderate Buy” and an average target price of $59.41.
Dynatrace Financial Overview
On November 5, 2023, Dynatrace reported its latest quarterly earnings, revealing earnings per share (EPS) of $0.44. This figure surpassed analysts’ expectations of $0.41 by $0.03. The company’s revenue for the quarter reached $493.85 million, exceeding the anticipated $487.33 million. Compared to the same quarter last year, this represents an increase of 18.1%.
For fiscal year 2026, Dynatrace has projected guidance of $1.620 to $1.640 EPS, with an average prediction of $0.68 EPS for the current year.
The stock opened at $38.08 on November 6, 2023. Dynatrace has a market capitalization of $11.48 billion, a price-to-earnings ratio of 22.80, and a beta of 0.85. The company’s 52-week range has seen a low of $37.43 and a high of $63.00.
Insider Transactions and Institutional Investments
Recent transactions involving company insiders have also drawn attention. On November 17, 2023, Daniel S. Yates, Chief Accounting Officer, sold 2,000 shares of Dynatrace stock at an average price of $46.69, totaling approximately $93,380.00. Post-sale, Yates retains 23,380 shares valued at around $1,091,612.20.
Additionally, Rick M. McConnell, the Chief Executive Officer, sold 30,000 shares on November 11, 2023, at an average price of $46.61, amounting to about $1,398,300.00. Following this transaction, McConnell holds 108,125 shares valued at approximately $5,039,706.25.
Institutional investors have increased their stakes in Dynatrace. Wellington Management Group LLP expanded its position by 719.3% in the third quarter, owning 7,340,127 shares valued at $355,629,000 after acquiring an additional 6,444,262 shares. Other notable transactions include SCGE Management L.P. purchasing a new position worth approximately $155,858,000 and Pictet Asset Management Holding SA increasing its holdings by 16.5%.
Overall, institutional investors and hedge funds own 94.28% of Dynatrace’s stock, reflecting strong confidence in the company’s future prospects.
Dynatrace continues to position itself as a leader in software intelligence, specializing in application performance management, cloud infrastructure monitoring, and digital experience management. The company’s flagship offering, the Dynatrace Software Intelligence Platform, utilizes artificial intelligence to deliver real-time observability across various environments, enhancing the ability to troubleshoot performance issues and optimize user experiences.
