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

Dynatrace, Inc. (NYSE:DT)’s stock price gapped down prior to trading on Wednesday after Guggenheim downgraded the stock from a buy rating to a neutral rating. The stock had previously closed at $39.21, but opened at $33.52. Dynatrace shares last traded at $34.9520, with a volume of 3,517,250 shares.

Other analysts have also issued research reports about the stock. Canaccord Genuity Group set a $50.00 price objective on shares of Dynatrace in a research note on Tuesday, February 10th. Morgan Stanley lowered their price target on shares of Dynatrace from $57.00 to $43.00 and set an “equal weight” rating on the stock in a report on Tuesday, February 10th. Wedbush dropped their price target on shares of Dynatrace from $67.00 to $55.00 and set an “outperform” rating on the stock in a research report on Wednesday, February 11th. Cantor Fitzgerald dropped their price target on shares of Dynatrace from $51.00 to $37.00 and set a “neutral” rating on the stock in a research report on Friday, February 6th. Finally, Raymond James Financial restated a “market perform” rating on shares of Dynatrace in a research report on Monday, February 9th. One research analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and seven have assigned a Hold rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $51.32.

Insider Transactions at Dynatrace

In related news, EVP Stephen A. Mcmahon acquired 3,000 shares of the firm’s stock in a transaction on Tuesday, March 3rd. The shares were acquired at an average cost of $35.75 per share, with a total value of $107,250.00. Following the completion of the acquisition, the executive vice president directly owned 3,454 shares in the company, valued at approximately $123,480.50. This trade represents a 660.79% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 0.57% of the stock is currently owned by insiders.

More Dynatrace News

Here are the key news stories impacting Dynatrace this week:

• Positive Sentiment: Dynatrace beat fiscal Q4 earnings and revenue estimates, reporting EPS of $0.41-$0.42 versus $0.39 expected and revenue of about $531.7 million versus $521.0 million expected. Article Title
• Positive Sentiment: The company raised first-quarter FY2027 guidance to EPS of $0.44-$0.45 and revenue of $547 million-$551 million, both above Wall Street expectations.
• Positive Sentiment: Dynatrace also lifted full-year FY2027 EPS guidance to $1.93-$1.95, well ahead of the $1.75 consensus, signaling confidence in continued profit growth.
• Positive Sentiment: Management said FY2026 ended with ARR above $2 billion and a fourth straight quarter of 16% constant-currency ARR growth, reinforcing momentum in the core subscription business. Article Title
• Neutral Sentiment: Investors are also parsing the earnings call presentation and key operating metrics for signs that growth can stay elevated after the strong quarter. Article Title
• Negative Sentiment: Despite the beat-and-raise report, shares have been under pressure as the market appears to be focusing on the stock’s already elevated valuation and whether guidance is strong enough to justify further upside.

Hedge Funds Weigh In On Dynatrace

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Cim LLC increased its position in shares of Dynatrace by 1.0% in the third quarter. Cim LLC now owns 22,184 shares of the company’s stock worth $1,075,000 after acquiring an additional 228 shares in the last quarter. Orion Porfolio Solutions LLC increased its position in shares of Dynatrace by 1.4% in the third quarter. Orion Porfolio Solutions LLC now owns 16,983 shares of the company’s stock worth $823,000 after acquiring an additional 231 shares in the last quarter. GAMMA Investing LLC increased its position in shares of Dynatrace by 7.7% in the fourth quarter. GAMMA Investing LLC now owns 3,460 shares of the company’s stock worth $150,000 after acquiring an additional 246 shares in the last quarter. Assetmark Inc. increased its position in shares of Dynatrace by 0.7% in the fourth quarter. Assetmark Inc. now owns 36,629 shares of the company’s stock worth $1,588,000 after acquiring an additional 248 shares in the last quarter. Finally, Northwestern Mutual Investment Management Company LLC increased its position in shares of Dynatrace by 0.4% in the third quarter. Northwestern Mutual Investment Management Company LLC now owns 67,205 shares of the company’s stock worth $3,256,000 after acquiring an additional 264 shares in the last quarter. 94.28% of the stock is owned by hedge funds and other institutional investors.

Dynatrace Price Performance

The firm’s 50-day moving average price is $37.14 and its 200-day moving average price is $40.59. The company has a market cap of $10.00 billion, a price-to-earnings ratio of 54.89, a price-to-earnings-growth ratio of 2.46 and a beta of 0.70.

Dynatrace (NYSE:DT) last announced its earnings results on Wednesday, May 13th. The company reported $0.41 earnings per share for the quarter, beating the consensus estimate of $0.39 by $0.02. The business had revenue of $531.72 million during the quarter, compared to the consensus estimate of $521.01 million. Dynatrace had a net margin of 9.55% and a return on equity of 9.75%. The business’s quarterly revenue was up 19.4% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.33 earnings per share. Dynatrace has set its FY 2027 guidance at 1.930-1.950 EPS and its Q1 2027 guidance at 0.440-0.450 EPS. On average, sell-side analysts anticipate that Dynatrace, Inc. will post 0.88 earnings per share for the current year.

Dynatrace announced that its board has authorized a share buyback plan on Monday, February 9th that permits the company to buyback $1.00 billion in shares. This buyback authorization permits the company to repurchase up to 9.8% of its shares through open market purchases. Shares buyback plans are generally an indication that the company’s management believes its shares are undervalued.

About Dynatrace

Dynatrace is a global software intelligence company specializing in application performance management (APM), cloud infrastructure monitoring, and digital experience management. Its flagship offering, the Dynatrace Software Intelligence Platform, leverages artificial intelligence to provide real-time observability across distributed environments, including on-premises data centers, private clouds, public clouds and hybrid deployments. Organizations rely on Dynatrace to detect anomalies, troubleshoot performance issues and optimize end-user experiences through automated root-cause analysis powered by the company’s engine, Davis.

The Dynatrace platform comprises modules for full-stack application monitoring, digital experience monitoring, infrastructure monitoring and business analytics.