Dynatrace (NYSE:DT) Stock Price Target Lowered at Wells Fargo & Company

Key Points

• Wells Fargo cut Dynatrace’s price target from $75 to $65 but maintained its Overweight rating; the new target implies 41.8% upside from the stock’s current price.
• Dynatrace beat quarterly earnings and revenue estimates, with revenue up 17.4% year over year, and authorized up to $1 billion in share repurchases.
• Despite the quarterly beat, a reduced profit and cash-flow outlook weighed on shares, which fell 2.5% to $45.84 in Wednesday trading.

Dynatrace (NYSE:DT - Get Free Report) had its target price cut by equities researchers at Wells Fargo & Company from $75.00 to $65.00 in a research report issued to clients and investors on Wednesday, Benzinga reports. The firm presently has an "overweight" rating on the stock. Wells Fargo & Company's target price suggests a potential upside of 41.80% from the stock's current price.

DT has been the topic of a number of other reports. The Goldman Sachs Group reissued a "buy" rating and set a $71.00 price objective on shares of Dynatrace in a report on Thursday, October 15th. BNP Paribas Exane upgraded shares of Dynatrace from a "neutral" rating to an "outperform" rating and set a $75.00 price target on the stock in a research report on Thursday, October 8th. Wedbush decreased their price target on shares of Dynatrace from $54.00 to $50.00 and set a "neutral" rating on the stock in a research note on Wednesday. BTIG Research lowered their price objective on shares of Dynatrace from $73.00 to $63.00 and set a "buy" rating for the company in a report on Tuesday. Finally, Cantor Fitzgerald boosted their price objective on shares of Dynatrace from $47.00 to $65.00 and gave the stock a "neutral" rating in a report on Friday, October 30th. Twenty-four investment analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company's stock. According to data from MarketBeat.com, Dynatrace currently has a consensus rating of "Moderate Buy" and an average price target of $62.69.

Dynatrace Stock Down 2.5%

Shares of NYSE DT traded down $1.19 during mid-day trading on Wednesday, reaching $45.84. 4,483,819 shares of the company were exchanged, compared to its average volume of 6,657,875. Dynatrace has a 52 week low of $31.64 and a 52 week high of $66.30. The company's 50 day moving average price is $57.67 and its 200 day moving average price is $44.62. The stock has a market capitalization of $13.25 billion, a PE ratio of 91.30, a PEG ratio of 3.38 and a beta of 0.76.

Dynatrace (NYSE:DT - Get Free Report) last released its quarterly earnings results on Tuesday, November 3rd. The company reported $0.54 earnings per share 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 business had revenue of $579.92 million for the quarter, compared to the consensus estimate of $568.03 million. During the same quarter last year, the business posted $0.44 earnings per share. The company's revenue for the quarter was up 17.4% on a year-over-year basis. On average, sell-side analysts predict that Dynatrace will post 1.11 earnings per share for the current year.

Dynatrace declared that its board has approved a share repurchase plan on Tuesday, November 3rd that allows the company to repurchase $1 billion in outstanding shares. This buyback authorization allows the company to repurchase up to 6.3% of its stock through open market purchases. Share buyback plans are usually an indication that the company's board of directors believes its stock is undervalued.

Insiders Place Their Bets

In other Dynatrace news, EVP Bernd Greifeneder sold 50,000 shares of the stock in a transaction that occurred on Friday, September 18th. The stock was sold at an average price of $57.21, for a total value of $2,860,500.00. Following the completion of the sale, the executive vice president owned 904,846 shares in the company, valued at approximately $51,766,239.66. This trade represents a 5.24% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.69% of the company's stock.

Hedge Funds Weigh In On Dynatrace

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Pictet Asset Management Holding SA boosted its stake in shares of Dynatrace by 12.0% during the 3rd quarter. Pictet Asset Management Holding SA now owns 14,293,302 shares of the company's stock valued at $825,243,000 after purchasing an additional 1,531,104 shares in the last quarter. Wellington Management Group LLP increased its position in shares of Dynatrace by 23.5% during 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 during the period. Bank of America Corp DE raised its stake in Dynatrace by 304.7% in the first quarter. Bank of America Corp DE now owns 9,357,612 shares of the company's stock worth $346,044,000 after buying an additional 7,045,591 shares in the last quarter. First Trust Advisors LP raised its stake in Dynatrace by 706.8% in the first quarter. First Trust Advisors LP now owns 6,801,507 shares of the company's stock worth $251,520,000 after buying an additional 5,958,505 shares in the last quarter. Finally, Amundi raised its stake in Dynatrace by 461.5% in the first quarter. Amundi now owns 6,238,938 shares of the company's stock worth $230,716,000 after buying an additional 5,127,910 shares in the last quarter. Institutional investors own 94.28% of the company's stock.

Dynatrace News Roundup

Here are the key news stories impacting Dynatrace this week:

• Positive Sentiment: Dynatrace reported fiscal Q2 adjusted earnings of $0.54 per share, above the $0.49 consensus, and revenue of $579.92 million, exceeding estimates and growing 17.4% year over year. Dynatrace Reports Second Quarter Fiscal Year 2027 Financial Results
• Positive Sentiment: The board authorized up to $1 billion in share repurchases, a potential source of shareholder returns and a signal management sees value in the shares.
• Positive Sentiment: Dynatrace and CrowdStrike announced a strategic partnership combining security and observability capabilities. CrowdStrike and Dynatrace announce security and observability partnership
• Neutral Sentiment: Analysts lowered price targets after the results, but Rosenblatt and Needham maintained Buy ratings; Wedbush cut its target to $50 and kept a Neutral rating.
• Negative Sentiment: The company’s reduced profit and cash-flow outlook—reported as affected by its acquisition—overshadowed the quarterly beat and prompted a sharp selloff. This weaker forward outlook appears to be the main near-term pressure on DT. Dynatrace falls on trimmed earnings guidance

Dynatrace Company Profile

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.

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