Morgan Stanley Cuts Dynatrace (NYSE:DT) Price Target to $43.00

Dynatrace (NYSE:DT) had its price target trimmed by Morgan Stanley from $57.00 to $43.00 in a report issued on Tuesday, Marketbeat reports. The firm currently has an equal weight rating on the stock.

DT has been the subject of a number of other research reports. Keefe, Bruyette & Woods upgraded Dynatrace to a “buy” rating in a report on Monday. Wells Fargo & Company dropped their target price on shares of Dynatrace from $65.00 to $50.00 and set an “overweight” rating for the company in a research report on Tuesday. Raymond James Financial reaffirmed a “market perform” rating on shares of Dynatrace in a research report on Monday. Jefferies Financial Group lowered their price objective on Dynatrace from $65.00 to $55.00 and set a “buy” rating for the company in a report on Monday, January 5th. Finally, Stifel Nicolaus set a $51.00 target price on Dynatrace in a report on Monday. Twenty investment analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $52.52.

Dynatrace Price Performance

NYSE DT opened at $36.54 on Tuesday. Dynatrace has a 1-year low of $32.83 and a 1-year high of $62.74. The firm has a market capitalization of $10.90 billion, a P/E ratio of 59.90, a P/E/G ratio of 2.93 and a beta of 0.84. The business’s 50-day simple moving average is $41.32 and its 200-day simple moving average is $45.93.

Dynatrace (NYSE:DT) last posted its earnings results on Monday, February 9th. The company reported $0.44 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.41 by $0.03. The firm had revenue of $515.47 million during the quarter, compared to the consensus estimate of $506.31 million. Dynatrace had a net margin of 9.55% and a return on equity of 9.75%. The company’s revenue was up 18.2% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.37 EPS. Dynatrace has set its FY 2026 guidance at 1.670-1.690 EPS and its Q4 2026 guidance at 0.380-0.390 EPS. On average, equities research analysts expect that Dynatrace will post 0.68 EPS for the current fiscal year.

Dynatrace declared that its board has approved a stock repurchase program on Monday, February 9th that permits the company to buyback $1.00 billion in shares. This buyback authorization permits the company to buy up to 9.8% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s board believes its shares are undervalued.

Insider Activity

In other Dynatrace news, EVP Dan Zugelder sold 7,505 shares of the business’s stock in a transaction dated Wednesday, December 10th. The shares were sold at an average price of $45.27, for a total transaction of $339,751.35. Following the completion of the transaction, the executive vice president directly owned 8,925 shares of the company’s stock, valued at $404,034.75. The trade was a 45.68% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CAO Daniel S. Yates sold 2,000 shares of Dynatrace stock in a transaction that occurred on Monday, November 17th. The shares were sold at an average price of $46.69, for a total value of $93,380.00. Following the sale, the chief accounting officer directly owned 23,380 shares in the company, valued at approximately $1,091,612.20. This trade represents a 7.88% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 9,843 shares of company stock worth $448,124. 0.57% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Dynatrace

Institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. lifted its stake in shares of Dynatrace by 2.4% in the 3rd quarter. Vanguard Group Inc. now owns 32,142,909 shares of the company’s stock worth $1,557,324,000 after acquiring an additional 739,895 shares during the period. Pictet Asset Management Holding SA lifted its position in Dynatrace by 16.5% in the fourth quarter. Pictet Asset Management Holding SA now owns 14,648,533 shares of the company’s stock worth $634,985,000 after purchasing an additional 2,076,990 shares during the period. State Street Corp boosted its stake in Dynatrace by 2.8% during the 3rd quarter. State Street Corp now owns 10,562,363 shares of the company’s stock valued at $511,746,000 after purchasing an additional 286,352 shares in the last quarter. American Century Companies Inc. increased its position in shares of Dynatrace by 0.9% during the 3rd quarter. American Century Companies Inc. now owns 7,919,446 shares of the company’s stock valued at $383,697,000 after purchasing an additional 73,827 shares during the period. Finally, Wellington Management Group LLP raised its stake in shares of Dynatrace by 719.3% in the 3rd quarter. Wellington Management Group LLP now owns 7,340,127 shares of the company’s stock worth $355,629,000 after buying an additional 6,444,262 shares in the last quarter. Institutional investors and hedge funds own 94.28% of the company’s stock.

Dynatrace News Roundup

Here are the key news stories impacting Dynatrace this week:

• Positive Sentiment: Q3 beat, raised guidance and double-digit ARR growth reinforce revenue durability and product stickiness; management also emphasized AI observability and platform expansion as future growth drivers. Dynatrace’s Earnings Win Makes One Thing Clear: This Software Is Essential
• Positive Sentiment: Board authorized a $1 billion share repurchase program (replacing a largely-completed $500M plan), which reduces share count and signals management confidence. Share Repurchase Program Announced by Dynatrace (NYSE:DT) Board of Directors
• Positive Sentiment: Cantor highlights stronger security sales following recent M&A activity, suggesting cross-sell and product-suite expansion are already contributing to revenue. Cantor Notes Strengthening Security Sales Post-M&A Activity For Dynatrace, Inc. (DT)
• Positive Sentiment: Several firms reiterated bullish views (DA Davidson, Guggenheim, KeyCorp) after the quarter, supporting upside case tied to enterprise consolidation and recurring revenue strength. DA Davidson reaffirms buy on Dynatrace (DT) after solid Q3
• Neutral Sentiment: Sector-value comparisons (e.g., vs. Genpact) highlight valuation tradeoffs for investors deciding between IT services/observability exposures; useful for positioning but not immediately market-moving. G vs. DT: Which Stock Is the Better Value Option?
• Negative Sentiment: Morgan Stanley cut its price target to $43, signaling valuation concerns and contributing to downward pressure. Morgan Stanley Lowers Dynatrace (NYSE:DT) Price Target to $43.00
• Negative Sentiment: BTIG trimmed its target to $53 and Wells Fargo pulled its target to $50—multiple firms citing sector-wide multiple compression rather than company-specific execution failures. BTIG Research Cuts Dynatrace (NYSE:DT) Price Target to $53.00
• Negative Sentiment: Scotiabank lowered expectations for the stock, adding to the cluster of downgrades/target cuts that are weighing on near-term sentiment. Scotiabank Has Lowered Expectations for Dynatrace (NYSE:DT) Stock Price

Dynatrace Company Profile

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.