Dynatrace (NYSE:DT) Raised to "Buy" at Needham & Company LLC

Key Points

• Needham & Company upgraded Dynatrace to “Buy” from “Hold” and set a $68 price target, implying 21.94% upside from the prior close. The stock has a consensus “Moderate Buy” rating and an average target of $55.96.
• Dynatrace reported quarterly results that exceeded expectations, with EPS of $0.48 versus the $0.45 consensus and revenue of $554.55 million, up 16.3% year over year.
• Institutional ownership remains high at 94.28%, with several major investment firms increasing their stakes, including Bank of America, Wellington Management and First Trust Advisors.

Dynatrace (NYSE:DT - Get Free Report) was upgraded by investment analysts at Needham & Company LLC from a "hold" rating to a "buy" rating in a research report issued on Friday, Marketbeat reports. The firm currently has a $68.00 price target on the stock. Needham & Company LLC's price objective suggests a potential upside of 21.94% from the stock's previous close.

A number of other research firms have also commented on DT. Cantor Fitzgerald lifted their price objective on Dynatrace from $37.00 to $47.00 and gave the stock a "neutral" rating in a research note on Monday, August 3rd. Royal Bank Of Canada increased their target price on shares of Dynatrace from $50.00 to $59.00 and gave the company an "outperform" rating in a research report on Thursday, August 6th. Wedbush lowered shares of Dynatrace from an "outperform" rating to a "neutral" rating and set a $54.00 price target for the company. in a report on Thursday, September 10th. KeyCorp boosted their price target on shares of Dynatrace from $53.00 to $61.00 and gave the stock an "overweight" rating in a research report on Thursday, August 6th. Finally, Weiss Ratings raised shares of Dynatrace from a "hold (c-)" rating to a "hold (c)" rating in a research note on Wednesday. Twenty-three analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $55.96.

Dynatrace Stock Up 1.0%

Shares of Dynatrace stock opened at $55.76 on Friday. The stock has a market cap of $16.12 billion, a price-to-earnings ratio of 111.53, a P/E/G ratio of 3.40 and a beta of 0.74. Dynatrace has a twelve month low of $31.64 and a twelve month high of $56.27. The company's fifty day moving average is $48.56 and its 200 day moving average is $42.51.

Dynatrace (NYSE:DT - Get Free Report) last announced its earnings results on Wednesday, August 5th. The company reported $0.48 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.45 by $0.03. Dynatrace had a return on equity of 11.07% and a net margin of 7.22%.The business had revenue of $554.55 million during the quarter, compared to analyst estimates of $550.01 million. During the same period last year, the company earned $0.42 EPS. Dynatrace's revenue for the quarter was up 16.3% compared to the same quarter last year. Dynatrace has set its Q2 2027 guidance at 0.480-0.490 EPS and its FY 2027 guidance at 1.970-1.990 EPS. As a group, equities analysts anticipate that Dynatrace will post 1.11 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Dynatrace

Several hedge funds and other institutional investors have recently modified their holdings of the company. Pictet Asset Management Holding SA lifted its holdings in shares of Dynatrace by 7.9% in the 1st quarter. Pictet Asset Management Holding SA now owns 15,809,223 shares of the company's stock worth $584,649,000 after purchasing an additional 1,160,690 shares in the last quarter. Wellington Management Group LLP lifted its stake in shares of Dynatrace by 23.5% in the second quarter. Wellington Management Group LLP now owns 11,528,792 shares of the company's stock valued at $506,229,000 after buying an additional 2,191,497 shares in the last quarter. Bank of America Corp DE grew its holdings in shares of Dynatrace by 304.7% during the first quarter. Bank of America Corp DE now owns 9,357,612 shares of the company's stock valued at $346,044,000 after buying an additional 7,045,591 shares during the last quarter. Geode Capital Management LLC increased its position in shares of Dynatrace by 2.3% during the fourth quarter. Geode Capital Management LLC now owns 6,098,443 shares of the company's stock worth $263,631,000 after acquiring an additional 137,225 shares in the last quarter. Finally, First Trust Advisors LP raised its holdings in shares of Dynatrace by 706.8% in the 1st quarter. First Trust Advisors LP now owns 6,801,507 shares of the company's stock worth $251,520,000 after acquiring an additional 5,958,505 shares during the last quarter. Institutional investors own 94.28% of the company's stock.

Dynatrace Company Profile

Dynatrace, Inc is a software company that provides an observability and application security platform for organizations operating cloud, hybrid, and multicloud environments. Its platform is designed to help businesses monitor the performance, availability, and security of applications, infrastructure, networks, and user experiences from a unified environment.

The company's offerings include application performance monitoring, infrastructure and cloud monitoring, log and analytics capabilities, digital experience monitoring, application security, and software delivery insights.

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