UBS Group Issues Pessimistic Forecast for Dynatrace (NYSE:DT) Stock Price

Dynatrace (NYSE:DT) had its target price dropped by equities researchers at UBS Group from $80.00 to $75.00 in a report issued on Wednesday, Benzinga reports. The firm currently has a “buy” rating on the stock. UBS Group‘s price target indicates a potential upside of 60.62% from the company’s current price.

DT has been the subject of several other reports. DA Davidson lifted their target price on Dynatrace from $60.00 to $65.00 and gave the stock a “buy” rating in a research report on Thursday, August 6th. Truist Financial upped their target price on shares of Dynatrace from $60.00 to $70.00 and gave the stock a “buy” rating in a research note on Wednesday, October 21st. BMO Capital Markets raised their target price on shares of Dynatrace from $60.00 to $62.00 and gave the stock an “outperform” rating in a research report on Tuesday, September 15th. Zacks Research downgraded shares of Dynatrace from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, August 11th. Finally, Rosenblatt Securities decreased their price target on shares of Dynatrace from $70.00 to $65.00 and set a “buy” rating for the company in a research note on Wednesday. Twenty-four analysts have rated the stock with a Buy rating and eight have given a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $62.00.

Dynatrace Stock Performance

NYSE DT traded down $0.34 during trading on Wednesday, hitting $46.69. The stock had a trading volume of 15,036,484 shares, compared to its average volume of 6,710,826. The stock has a market capitalization of $13.49 billion, a price-to-earnings ratio of 93.39, a P/E/G ratio of 3.38 and a beta of 0.76. Dynatrace has a one year low of $31.64 and a one year high of $66.30. The stock has a 50 day simple moving average of $57.67 and a 200 day simple moving average of $44.62.

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

Dynatrace announced that its board has approved a stock repurchase plan on Tuesday, November 3rd that allows the company to repurchase $1 billion in outstanding shares. This repurchase authorization allows the company to reacquire up to 6.3% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s management believes its shares are undervalued.

Insider Buying and Selling at Dynatrace

In other news, EVP Bernd Greifeneder sold 50,000 shares of the stock in a transaction that occurred on Friday, September 18th. The shares were sold at an average price of $57.21, for a total transaction of $2,860,500.00. Following the transaction, 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 ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.69% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. CX Institutional raised its stake in Dynatrace by 1,119.0% in the second quarter. CX Institutional now owns 707 shares of the company’s stock valued at $31,000 after buying an additional 649 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. acquired a new stake in shares of Dynatrace during the third quarter worth $39,000. Elevation Wealth Partners LLC grew its holdings in shares of Dynatrace by 37.8% during the third quarter. Elevation Wealth Partners LLC now owns 929 shares of the company’s stock valued at $54,000 after buying an additional 255 shares during the last quarter. EverSource Wealth Advisors LLC grew its holdings in shares of Dynatrace by 115.7% during the first quarter. EverSource Wealth Advisors LLC now owns 1,512 shares of the company’s stock valued at $56,000 after buying an additional 811 shares during the last quarter. Finally, Provenance Wealth Advisors LLC acquired a new position in shares of Dynatrace in the 3rd quarter valued at $61,000. 94.28% of the stock is owned by institutional investors and hedge funds.

Dynatrace News Summary

Here are the key news stories impacting Dynatrace this week:

• Positive Sentiment: Dynatrace reported fiscal Q2 adjusted earnings of $0.54 per share, ahead of the $0.49 consensus, and revenue of about $580 million versus estimates of $568 million. Revenue grew 17.4% year over year. Dynatrace fiscal Q2 results
• Positive Sentiment: The board authorized a $1 billion share-repurchase program, allowing buybacks of up to 6.3% of shares outstanding. Repurchases could support per-share results and signal management sees value in the stock.
• Positive Sentiment: Dynatrace and CrowdStrike announced a strategic partnership combining security and observability capabilities, which may strengthen their offerings to enterprise customers. Dynatrace and CrowdStrike partnership
• Negative Sentiment: The earnings beat was overshadowed by a reduced profit and cash-flow outlook, with the acquisition weighing on the forecast. Investors appear concerned that near-term profitability and cash generation may be weaker than expected. Dynatrace earnings and outlook
• Negative Sentiment: Multiple firms cut their price targets, including Barclays ($71 to $61), Wells Fargo ($75 to $65), and BMO ($70 to $60). Most retained Buy, Overweight, or Outperform ratings, but the revisions reflect reduced expectations; Wedbush lowered its target to $50 and kept a Neutral rating.

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.