Royal Bank Of Canada Has Lowered Expectations for Dynatrace (NYSE:DT) Stock Price

Key Points

• Royal Bank of Canada cut Dynatrace’s price target from $73 to $68 but maintained an Outperform rating; its target implies 48.34% upside from the prior close. Analysts overall hold a Moderate Buy consensus with a $62.69 average target.
• Dynatrace beat quarterly EPS and revenue estimates, with revenue up 17.4% year over year, but a reduced profit and cash-flow outlook weighed on shares, which fell 2.5% Wednesday.
• The board authorized a $1 billion share buyback, allowing repurchases of up to 6.3% of the company’s shares.

Dynatrace (NYSE:DT - Get Free Report) had its price objective dropped by research analysts at Royal Bank Of Canada from $73.00 to $68.00 in a research report issued to clients and investors on Wednesday, Benzinga reports. The firm currently has an "outperform" rating on the stock. Royal Bank Of Canada's price objective suggests a potential upside of 48.34% from the company's previous close.

A number of other analysts have also recently weighed in on the company. Wedbush reduced their price target on Dynatrace from $54.00 to $50.00 and set a "neutral" rating for the company in a research report on Wednesday. Needham & Company LLC lowered their price objective on Dynatrace from $68.00 to $65.00 and set a "buy" rating on the stock in a report on Tuesday. KeyCorp raised their price objective on Dynatrace from $53.00 to $61.00 and gave the company an "overweight" rating in a research note on Thursday, August 6th. Barclays boosted their target price on Dynatrace from $60.00 to $71.00 and gave the stock an "overweight" rating in a report on Tuesday, October 13th. Finally, Zacks Research cut Dynatrace from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, August 11th. Twenty-four research 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, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $62.69.

Dynatrace Stock Down 2.5%

Shares of DT traded down $1.19 during mid-day trading on Wednesday, hitting $45.84. 4,483,819 shares of the company's stock were exchanged, compared to its average volume of 6,657,875. The stock has a market cap of $13.25 billion, a price-to-earnings ratio of 91.30, a P/E/G ratio of 3.38 and a beta of 0.76. The firm has a fifty day moving average of $57.67 and a two-hundred day moving average of $44.62. Dynatrace has a twelve month low of $31.64 and a twelve month high of $66.30.

Dynatrace (NYSE:DT - Get Free Report) last released its quarterly earnings data on Tuesday, November 3rd. The company reported $0.54 earnings per share (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%. Dynatrace's quarterly revenue was up 17.4% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.44 EPS. On average, equities analysts predict that Dynatrace will post 1.11 earnings per share for the current year.

Dynatrace declared that its Board of Directors has approved a stock buyback program on Tuesday, November 3rd that allows the company to buy back $1 billion in shares. This repurchase authorization allows the company to buy up to 6.3% of its stock through open market purchases. Share repurchase programs are typically an indication that the company's management believes its stock is undervalued.

Insider Activity at Dynatrace

In other news, EVP Bernd Greifeneder sold 50,000 shares of the company's stock in a transaction that occurred on Friday, September 18th. The stock was sold at an average price of $57.21, for a total transaction of $2,860,500.00. Following the completion of the transaction, the executive vice president directly owned 904,846 shares in the company, valued at $51,766,239.66. The trade was a 5.24% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through 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 Trading of Dynatrace

Hedge funds have recently bought and sold shares of the stock. Pictet Asset Management Holding SA increased its holdings 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 worth $825,243,000 after purchasing an additional 1,531,104 shares during the period. 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 during the period. Bank of America Corp DE grew its position in Dynatrace by 304.7% during 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 grew its position in Dynatrace by 706.8% during 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 grew its position in Dynatrace by 461.5% during 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. 94.28% of the stock is owned by institutional investors.

More Dynatrace News

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

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.