Citigroup Issues Pessimistic Forecast for Dynatrace (NYSE:DT) Stock Price

Key Points

• Citigroup cut its price target on Dynatrace from $60 to $50, though it kept a buy rating. The new target still implies about 35% upside from the prior close.
• Other analysts have also been trimming expectations, with several firms lowering their targets after Dynatrace’s latest results. The overall consensus remains Moderate Buy with an average target price of $47.78.
• Dynatrace recently beat quarterly earnings and revenue estimates, reported 19.4% year-over-year revenue growth, and raised full-year guidance. The company also approved a $1 billion share buyback plan, signaling management confidence in the stock.

Dynatrace (NYSE:DT - Get Free Report) had its price target decreased by Citigroup from $60.00 to $50.00 in a research report issued on Thursday,Benzinga reports. The firm currently has a "buy" rating on the stock. Citigroup's target price points to a potential upside of 35.27% from the stock's previous close.

DT has been the subject of several other research reports. Stifel Nicolaus set a $51.00 price objective on shares of Dynatrace in a research report on Monday, February 9th. Rothschild & Co Redburn initiated coverage on shares of Dynatrace in a research report on Thursday, April 23rd. They set a "neutral" rating and a $40.00 target price on the stock. Barclays cut their target price on shares of Dynatrace from $47.00 to $44.00 and set an "overweight" rating on the stock in a research note on Thursday. Wells Fargo & Company decreased their price target on shares of Dynatrace from $65.00 to $50.00 and set an "overweight" rating for the company in a research note on Tuesday, February 10th. Finally, Morgan Stanley dropped their price objective on shares of Dynatrace from $43.00 to $40.00 and set an "equal weight" rating on the stock in a report on Thursday. Twenty equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $47.78.

Dynatrace Stock Up 6.4%

Dynatrace stock traded up $2.23 during trading hours on Thursday, reaching $36.96. 6,822,291 shares of the company's stock were exchanged, compared to its average volume of 6,856,192. The firm has a market capitalization of $11.02 billion, a PE ratio of 60.61, a PEG ratio of 2.39 and a beta of 0.70. The firm's 50 day simple moving average is $37.10 and its 200 day simple moving average is $40.49. Dynatrace has a twelve month low of $31.64 and a twelve month high of $57.55.

Dynatrace (NYSE:DT - Get Free Report) last announced its earnings results on Wednesday, May 13th. The company reported $0.41 EPS for the quarter, beating the consensus estimate of $0.39 by $0.02. Dynatrace had a return on equity of 9.75% and a net margin of 9.55%.The company had revenue of $531.72 million for the quarter, compared to analyst estimates of $521.01 million. During the same quarter in the prior year, the company earned $0.33 EPS. The firm's revenue for the quarter was up 19.4% compared to the same quarter last year. Dynatrace has set its FY 2027 guidance at 1.930-1.950 EPS and its Q1 2027 guidance at 0.440-0.450 EPS. Analysts anticipate that Dynatrace will post 0.88 EPS for the current year.

Dynatrace announced that its Board of Directors has approved a share buyback plan on Monday, February 9th that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the company to reacquire up to 9.8% of its stock through open market purchases. Stock buyback plans are generally a sign that the company's management believes its stock is undervalued.

Insider Buying and Selling at Dynatrace

In other Dynatrace news, EVP Stephen A. Mcmahon acquired 3,000 shares of Dynatrace stock in a transaction dated Tuesday, March 3rd. The stock was purchased at an average cost of $35.75 per share, for a total transaction of $107,250.00. Following the completion of the acquisition, the executive vice president directly owned 3,454 shares of the company's stock, valued at $123,480.50. This represents a 660.79% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Company insiders own 0.57% of the company's stock.

Hedge Funds Weigh In On Dynatrace

Several large investors have recently added to or reduced their stakes in DT. Cim LLC raised its stake in shares of Dynatrace by 1.0% in the third quarter. Cim LLC now owns 22,184 shares of the company's stock worth $1,075,000 after purchasing an additional 228 shares during the last quarter. Orion Porfolio Solutions LLC boosted its position in shares of Dynatrace by 1.4% during the third quarter. Orion Porfolio Solutions LLC now owns 16,983 shares of the company's stock valued at $823,000 after buying an additional 231 shares during the last quarter. GAMMA Investing LLC boosted its position in shares of Dynatrace by 7.7% during the fourth quarter. GAMMA Investing LLC now owns 3,460 shares of the company's stock valued at $150,000 after buying an additional 246 shares during the last quarter. Assetmark Inc. grew its holdings in Dynatrace by 0.7% during the fourth quarter. Assetmark Inc. now owns 36,629 shares of the company's stock worth $1,588,000 after buying an additional 248 shares in the last quarter. Finally, Northwestern Mutual Investment Management Company LLC grew its holdings in Dynatrace by 0.4% during the third quarter. Northwestern Mutual Investment Management Company LLC now owns 67,205 shares of the company's stock worth $3,256,000 after buying an additional 264 shares in the last quarter. Institutional investors own 94.28% of the company's stock.

Trending Headlines about Dynatrace

Here are the key news stories impacting Dynatrace this week:

• Positive Sentiment: Dynatrace beat fiscal Q4 expectations, reporting EPS of $0.41-$0.42 versus the $0.39 consensus and revenue of $531.7 million versus $521.0 million expected, with revenue up 19.4% year over year. Dynatrace earnings report
• Positive Sentiment: The company said it surpassed $2 billion in annual recurring revenue and posted its fourth straight quarter of 16% constant-currency ARR growth, reinforcing momentum in its AI-powered observability platform. Dynatrace FY26 results
• Positive Sentiment: Dynatrace raised guidance for fiscal 2027 EPS to $1.93-$1.95, above the prior consensus, and guided Q1 EPS to $0.44-$0.45, also ahead of expectations. Dynatrace guidance update
• Neutral Sentiment: Several brokerages trimmed price targets after the report, including Scotiabank to $44 from $47, BMO to $43 from $45, and BTIG to $47 from $53, suggesting analysts are still positive but less optimistic on the stock’s near-term upside. Analyst forecast cuts
• Negative Sentiment: Investors are focused on management’s first-quarter sales guidance, which came in below estimates and appears to be the main reason some traders are selling the stock despite the earnings beat. Dynatrace guidance concerns

About Dynatrace

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.

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