Dynatrace (NYSE:DT) Price Target Cut to $61.00 by Analysts at Barclays

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

A number of other equities research analysts have also weighed in on DT. Royal Bank Of Canada reduced their price objective on shares of Dynatrace from $73.00 to $68.00 and set an “outperform” rating on the stock in a report on Wednesday. Wedbush cut their target price on shares of Dynatrace from $54.00 to $50.00 and set a “neutral” rating on the stock in a report on Wednesday. Rosenblatt Securities reduced their price objective on Dynatrace from $70.00 to $65.00 and set a “buy” rating for the company in a research note on Wednesday. Cantor Fitzgerald lifted their target price on shares of Dynatrace from $47.00 to $65.00 and gave the company a “neutral” rating in a report on Friday, October 30th. Finally, Zacks Research lowered Dynatrace from a “strong-buy” rating to a “hold” rating in a report on Tuesday, August 11th. Twenty-four analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $62.34.

Dynatrace Stock Performance

Shares of NYSE DT traded down $0.56 during trading on Wednesday, reaching $46.47. The stock had a trading volume of 6,889,650 shares, compared to its average volume of 6,670,793. The company has a market cap of $13.43 billion, a P/E ratio of 92.91, a PEG ratio of 3.38 and a beta of 0.76. The business’s 50-day moving average price is $57.67 and its 200-day moving average price is $44.62. Dynatrace has a fifty-two week low of $31.64 and a fifty-two week high of $66.30.

Dynatrace (NYSE:DT) last posted its quarterly earnings data on Tuesday, November 3rd. The company reported $0.54 EPS for the quarter, beating the consensus estimate 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 net margin of 7.22% and a return on equity of 11.07%. The business’s revenue for the quarter was up 17.4% compared to the same quarter last year. During the same quarter last year, the firm posted $0.44 earnings per share. Analysts forecast that Dynatrace will post 1.11 EPS for the current fiscal year.

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

Insider Activity at Dynatrace

In other news, EVP Bernd Greifeneder sold 50,000 shares of the business’s stock in a transaction that occurred 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 completion of the transaction, the executive vice president owned 904,846 shares of the company’s stock, valued at $51,766,239.66. The trade was a 5.24% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.69% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Dynatrace

Hedge funds have recently modified their holdings of the stock. CX Institutional grew its stake in shares of Dynatrace by 1,119.0% during the 2nd quarter. CX Institutional now owns 707 shares of the company’s stock valued at $31,000 after buying an additional 649 shares during the period. Mirae Asset Global Investments Co. Ltd. acquired a new stake in Dynatrace during the third quarter worth about $39,000. Elevation Wealth Partners LLC raised its holdings in shares of Dynatrace by 37.8% in the 3rd quarter. Elevation Wealth Partners LLC now owns 929 shares of the company’s stock worth $54,000 after purchasing an additional 255 shares during the period. EverSource Wealth Advisors LLC raised its holdings in shares of Dynatrace by 115.7% in the 1st quarter. EverSource Wealth Advisors LLC now owns 1,512 shares of the company’s stock worth $56,000 after purchasing an additional 811 shares during the period. Finally, Provenance Wealth Advisors LLC acquired a new position in shares of Dynatrace in the 3rd quarter valued at about $61,000. 94.28% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about Dynatrace

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.