DA Davidson Reaffirms "Buy" Rating for Dynatrace (NYSE:DT)

Key Points

• DA Davidson reaffirmed its Buy rating on Dynatrace with a $50 price objective, implying roughly a 37.45% upside from the prior close.
• Dynatrace beat quarterly estimates with $0.44 EPS (vs. $0.41 consensus) and $515.47M revenue (up 18.2% y/y), and issued FY2026 guidance of $1.670–1.690 EPS.
• The board approved a $1.0 billion share repurchase (about 9.8% of shares) and an EVP recently bought shares, while institutional investors own roughly 94% of the stock, indicating insider and institutional confidence.

Dynatrace (NYSE:DT - Get Free Report)'s stock had its "buy" rating reissued by equities research analysts at DA Davidson in a research note issued on Wednesday,Benzinga reports. They presently have a $50.00 price objective on the stock. DA Davidson's target price points to a potential upside of 37.45% from the stock's previous close.

Other equities research analysts have also recently issued reports about the company. Rosenblatt Securities decreased their price objective on Dynatrace from $67.00 to $60.00 and set a "buy" rating for the company in a research note on Friday, January 30th. Cantor Fitzgerald decreased their price objective on Dynatrace from $51.00 to $37.00 and set a "neutral" rating for the company in a research note on Friday, February 6th. Keefe, Bruyette & Woods raised Dynatrace to a "buy" rating in a research note on Monday, February 9th. BMO Capital Markets decreased their target price on Dynatrace from $56.00 to $45.00 and set an "outperform" rating for the company in a research note on Monday, February 9th. Finally, UBS Group set a $64.00 target price on Dynatrace in a research note on Thursday, March 12th. Nineteen analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, Dynatrace has a consensus rating of "Moderate Buy" and an average price target of $51.64.

Dynatrace Stock Up 1.1%

Shares of Dynatrace stock traded up $0.39 during trading on Wednesday, reaching $36.38. 2,501,997 shares of the company were exchanged, compared to its average volume of 6,793,130. Dynatrace has a twelve month low of $31.64 and a twelve month high of $57.55. The business has a 50-day moving average price of $36.61 and a 200-day moving average price of $41.16. The firm has a market capitalization of $10.85 billion, a price-to-earnings ratio of 59.43, a P/E/G ratio of 2.17 and a beta of 0.79.

Dynatrace (NYSE:DT - Get Free Report) last announced its quarterly earnings data on Monday, February 9th. The company reported $0.44 EPS for the quarter, topping analysts' consensus estimates of $0.41 by $0.03. Dynatrace had a return on equity of 9.75% and a net margin of 9.55%.The business had revenue of $515.47 million during the quarter, compared to analysts' expectations of $506.31 million. During the same period in the previous year, the firm earned $0.37 earnings per share. The firm's quarterly revenue was up 18.2% compared to the same quarter last year. Dynatrace has set its FY 2026 guidance at 1.670-1.690 EPS and its Q4 2026 guidance at 0.380-0.390 EPS. On average, equities research analysts forecast that Dynatrace will post 0.87 EPS for the current fiscal year.

Dynatrace declared that its board has initiated a share repurchase plan on Monday, February 9th that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the company to purchase up to 9.8% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company's management believes its shares are undervalued.

Insider Transactions at Dynatrace

In other Dynatrace news, EVP Stephen A. Mcmahon bought 3,000 shares of the firm's stock in a transaction on Tuesday, March 3rd. The stock was purchased at an average cost of $35.75 per share, with a total value of $107,250.00. Following the completion of the purchase, the executive vice president owned 3,454 shares in the company, valued at approximately $123,480.50. The trade was a 660.79% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Insiders own 0.57% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the company. Praxis Investment Management Inc. boosted its position in shares of Dynatrace by 47.9% during the first quarter. Praxis Investment Management Inc. now owns 9,704 shares of the company's stock worth $359,000 after buying an additional 3,143 shares during the period. Counterpoint Mutual Funds LLC acquired a new position in shares of Dynatrace during the first quarter worth about $324,000. Y Intercept Hong Kong Ltd boosted its position in shares of Dynatrace by 14.1% during the first quarter. Y Intercept Hong Kong Ltd now owns 75,453 shares of the company's stock worth $2,790,000 after buying an additional 9,314 shares during the period. Elevation Point Wealth Partners LLC acquired a new position in shares of Dynatrace during the first quarter worth about $215,000. Finally, Platform Technology Partners acquired a new position in shares of Dynatrace during the first quarter worth about $203,000. 94.28% of the stock is owned by institutional investors and hedge funds.

Dynatrace Company Profile

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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