Dynatrace (NYSE:DT) Stock Gets Price Target Reduction from Citigroup

Dynatrace (NYSE:DT) had its target price reduced by equities research analysts at Citigroup from $75.00 to $70.00 in a report released on Wednesday, Benzinga reports. The brokerage presently has a “buy” rating on the stock. Citigroup‘s price target indicates a potential upside of 49.92% from the stock’s previous close.

A number of other analysts have also commented on the stock. Jefferies Financial Group reaffirmed a “buy” rating and set a $75.00 price objective on shares of Dynatrace in a research note on Sunday, October 11th. Needham & Company LLC dropped their target price on shares of Dynatrace from $68.00 to $65.00 and set a “buy” rating on the stock in a research report on Tuesday. Barclays cut their price target on shares of Dynatrace from $71.00 to $61.00 and set an “overweight” rating on the stock in a report on Wednesday. Rosenblatt Securities reduced their price target on shares of Dynatrace from $70.00 to $65.00 and set a “buy” rating for the company in a research report on Wednesday. Finally, Royal Bank Of Canada reduced their price target on shares of Dynatrace from $73.00 to $68.00 and set an “outperform” rating for the company in a research report on Wednesday. Twenty-four research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the stock. According to MarketBeat, Dynatrace has a consensus rating of “Moderate Buy” and an average target price of $62.17.

Dynatrace Stock Down 0.7%

Shares of NYSE DT traded down $0.34 during mid-day trading on Wednesday, hitting $46.69. 15,036,410 shares of the company traded hands, compared to its average volume of 6,710,702. Dynatrace has a 1 year low of $31.64 and a 1 year high of $66.30. The stock has a market capitalization of $13.49 billion, a price-to-earnings ratio of 93.39, a PEG ratio of 3.38 and a beta of 0.76. The business has a 50 day moving average of $57.67 and a two-hundred day moving average of $44.62.

Dynatrace (NYSE:DT) last released its quarterly earnings results on Tuesday, November 3rd. The company reported $0.54 earnings per share for the quarter, beating analysts’ consensus estimates of $0.49 by $0.05. The business had revenue of $579.92 million during the quarter, compared to analyst estimates of $568.03 million. Dynatrace had a return on equity of 11.07% and a net margin of 7.22%. Dynatrace’s revenue for the quarter was up 17.4% on a year-over-year basis. During the same quarter last year, the company posted $0.44 EPS. As a group, research analysts anticipate that Dynatrace will post 1.11 EPS for the current year.

Dynatrace announced that its Board of Directors has initiated a stock repurchase program on Tuesday, November 3rd that allows the company to repurchase $1 billion in shares. This repurchase authorization allows the company to reacquire up to 6.3% of its stock through open market purchases. Share repurchase programs are often a sign that the company’s board believes its stock is undervalued.

Insider Transactions at Dynatrace

In other Dynatrace 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 transaction 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 approximately $51,766,239.66. This trade represents a 5.24% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.69% of the company’s stock.

Hedge Funds Weigh In On Dynatrace

Large investors have recently made changes to their positions in the business. Pictet Asset Management Holding SA boosted 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 worth $825,243,000 after purchasing an additional 1,531,104 shares during the period. Wellington Management Group LLP grew its position in Dynatrace by 23.5% during the second quarter. Wellington Management Group LLP now owns 11,528,792 shares of the company’s stock valued at $506,229,000 after purchasing an additional 2,191,497 shares in the last quarter. Bank of America Corp DE increased its stake in Dynatrace by 304.7% in the 1st 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 increased its stake in Dynatrace by 706.8% in the 1st 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 stake in Dynatrace by 461.5% in the 1st quarter. Amundi now owns 6,238,938 shares of the company’s stock valued at $230,716,000 after buying an additional 5,127,910 shares during the period. Institutional investors and hedge funds own 94.28% of the company’s stock.

Key Stories Impacting Dynatrace

Here are the key news stories impacting Dynatrace this week:

• Positive Sentiment: Dynatrace authorized a $1 billion share repurchase, allowing it to buy back up to 6.3% of its shares. The program may support demand for the stock and signals management sees value at current levels. Share buyback report
• Positive Sentiment: Dynatrace and CrowdStrike announced a strategic security and observability partnership, which could broaden their joint customer offering. Partnership announcement
• Neutral Sentiment: Several firms lowered their price targets following the results but retained bullish ratings: Barclays to $61 and Wells Fargo to $65 (both Overweight), RBC to $68 (Outperform), BMO to $60 (Outperform), and UBS to $75 (Buy). These cuts temper expectations, while the ratings and targets still imply upside from recent levels. Analyst target changes
• Negative Sentiment: The main pressure is Dynatrace’s profit and cash-flow outlook: reports say acquisition-related impacts contributed to a trimmed forecast, overshadowing Q2 adjusted EPS of $0.54 and revenue of $579.9 million, both above consensus. Shares fell sharply after the results as investors reacted to the outlook rather than the quarterly beat. Earnings and outlook report
• Negative Sentiment: Wedbush cut its target to $50 from $54 and moved to Neutral, adding to concern that near-term upside may be limited. Wedbush rating information

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.