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

Dynatrace (NYSE:DT) had its price target decreased by investment analysts at Barclays from $71.00 to $61.00 in a note issued to investors on Wednesday, Benzinga reports. The firm presently has an “overweight” rating on the stock. Barclays‘s price target points to a potential upside of 31.26% from the company’s current price.

DT has been the topic of a number of other research reports. Royal Bank Of Canada reduced their price objective on Dynatrace from $73.00 to $68.00 and set an “outperform” rating on the stock in a research note on Wednesday. Cantor Fitzgerald increased their target price on Dynatrace from $47.00 to $65.00 and gave the company a “neutral” rating in a research note on Friday, October 30th. Citigroup raised their target price on Dynatrace from $65.00 to $75.00 and gave the company a “buy” rating in a report on Tuesday, October 27th. Oppenheimer increased their price objective on shares of Dynatrace from $60.00 to $71.00 and gave the company an “outperform” rating in a research report on Thursday, September 24th. Finally, UBS Group lifted their price objective on shares of Dynatrace from $74.00 to $80.00 and gave the company a “buy” rating in a research note on Friday, October 23rd. Twenty-four research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company. According to data from MarketBeat, Dynatrace presently has a consensus rating of “Moderate Buy” and an average price target of $62.34.

Dynatrace Stock Down 1.2%

Shares of DT stock traded down $0.56 during mid-day trading on Wednesday, reaching $46.47. The company’s stock had a trading volume of 6,889,650 shares, compared to its average volume of 6,670,793. The firm has a market capitalization of $13.43 billion, a PE ratio of 92.91, a price-to-earnings-growth ratio of 3.38 and a beta of 0.76. The company’s 50 day simple moving average is $57.67 and its 200-day simple moving average is $44.62. Dynatrace has a 12-month low of $31.64 and a 12-month high of $66.30.

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

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

Insider Transactions at Dynatrace

In related news, EVP Bernd Greifeneder sold 50,000 shares of the company’s stock in a transaction on Friday, September 18th. The shares were sold at an average price of $57.21, for a total value of $2,860,500.00. Following the sale, the executive vice president directly owned 904,846 shares of the company’s stock, valued at $51,766,239.66. This represents a 5.24% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.69% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Dynatrace

Institutional investors have recently modified their holdings of the stock. Apollon Wealth Management LLC lifted its holdings in shares of Dynatrace by 2.9% during the 3rd quarter. Apollon Wealth Management LLC now owns 6,277 shares of the company’s stock valued at $362,000 after purchasing an additional 174 shares in the last quarter. Cooper Financial Group lifted its stake in Dynatrace by 1.4% in the third quarter. Cooper Financial Group now owns 13,354 shares of the company’s stock valued at $771,000 after buying an additional 179 shares in the last quarter. North Dakota State Investment Board lifted its stake in Dynatrace by 2.9% in the third quarter. North Dakota State Investment Board now owns 8,985 shares of the company’s stock valued at $519,000 after buying an additional 252 shares in the last quarter. Elevation Wealth Partners LLC boosted its holdings in shares of Dynatrace by 37.8% in 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 period. Finally, Versant Capital Management Inc increased its position in shares of Dynatrace by 2.8% during the third quarter. Versant Capital Management Inc now owns 11,694 shares of the company’s stock worth $675,000 after acquiring an additional 315 shares in the last quarter. Institutional investors and hedge funds own 94.28% of the company’s stock.

Dynatrace News Summary

Here are the key news stories impacting Dynatrace this week:

• Positive Sentiment: Dynatrace reported fiscal Q2 adjusted EPS of $0.54 versus $0.49 expected and revenue of $579.92 million versus $568.03 million; revenue grew 17.4% year over year. Dynatrace Q2 results
• Positive Sentiment: The board authorized a $1 billion stock buyback, covering up to 6.3% of shares. Repurchases may support demand for the stock and signal management sees value at current levels.
• Neutral Sentiment: Several firms lowered price targets on Nov. 4 but retained positive ratings: Wells Fargo cut to $65 (Overweight), RBC to $68 (Outperform), BMO to $60 (Outperform), UBS to $75 (Buy), and Rosenblatt to $65 (Buy). Wedbush lowered its target to $50 and kept Neutral. The cuts temper expectations, although most firms still see upside from the referenced share price.
• Negative Sentiment: The main concern is the outlook: reports say Dynatrace trimmed profit and cash-flow expectations, with acquisition-related effects weighing on the profit forecast. The weaker guidance overshadowed the Q2 beat and helps explain the sharp post-earnings selloff. Earnings beat; acquisition impacts profit outlook

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.