Dynatrace, Inc. (NYSE:DT) Receives Consensus Recommendation of "Moderate Buy" from Brokerages

Key Points

• Dynatrace has a consensus broker rating of “Moderate Buy” from 25 analysts, with 18 Buy ratings and an average 1-year price target of $51.32.
• The company’s latest earnings beat expectations, reporting $0.44 EPS versus the $0.41 consensus and $515.47 million in revenue, up 18.2% from a year earlier.
• Dynatrace’s board approved a $1 billion share repurchase program, which can cover up to 9.8% of outstanding shares and may signal management believes the stock is undervalued.

Shares of Dynatrace, Inc. (NYSE:DT - Get Free Report) have received an average rating of "Moderate Buy" from the twenty-five brokerages that are presently covering the stock, MarketBeat Ratings reports. Six investment analysts have rated the stock with a hold rating, eighteen have assigned a buy rating and one has given a strong buy rating to the company. The average 1 year price objective among brokers that have covered the stock in the last year is $51.32.

DT has been the topic of several research analyst reports. Truist Financial set a $45.00 target price on shares of Dynatrace in a report on Wednesday, April 15th. Barclays decreased their price target on shares of Dynatrace from $57.00 to $47.00 and set an "overweight" rating on the stock in a research note on Tuesday, February 10th. Canaccord Genuity Group set a $50.00 price target on shares of Dynatrace in a research note on Tuesday, February 10th. Wedbush decreased their price target on shares of Dynatrace from $67.00 to $55.00 and set an "outperform" rating on the stock in a research note on Wednesday, February 11th. Finally, Stifel Nicolaus set a $51.00 price target on shares of Dynatrace in a research note on Monday, February 9th.

Dynatrace Stock Performance

DT stock opened at $40.70 on Monday. Dynatrace has a one year low of $31.64 and a one year high of $57.55. The company's fifty day moving average price is $36.89 and its 200-day moving average price is $40.81. The company has a market capitalization of $12.14 billion, a PE ratio of 66.71, a price-to-earnings-growth ratio of 2.48 and a beta of 0.70.

Dynatrace (NYSE:DT - Get Free Report) last released its earnings results on Monday, February 9th. The company reported $0.44 EPS for the quarter, topping the consensus estimate of $0.41 by $0.03. Dynatrace had a net margin of 9.55% and a return on equity of 9.75%. The firm had revenue of $515.47 million for the quarter, compared to the consensus estimate of $506.31 million. During the same quarter in the previous year, the firm earned $0.37 earnings per share. The company's quarterly revenue was up 18.2% compared to the same quarter last year. On average, research analysts predict that Dynatrace will post 0.88 EPS for the current fiscal year.

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

Insider Transactions at Dynatrace

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

Institutional Investors Weigh In On Dynatrace

Hedge funds and other institutional investors have recently made changes to their positions in the company. Penserra Capital Management LLC increased its stake in Dynatrace by 22.0% in the 3rd quarter. Penserra Capital Management LLC now owns 222,505 shares of the company's stock worth $10,780,000 after buying an additional 40,136 shares during the period. Stephens Investment Management Group LLC increased its stake in Dynatrace by 63.1% in the 3rd quarter. Stephens Investment Management Group LLC now owns 1,040,475 shares of the company's stock worth $50,411,000 after buying an additional 402,585 shares during the period. Rakuten Investment Management Inc. purchased a new position in Dynatrace in the 3rd quarter worth about $1,584,000. BI Asset Management Fondsmaeglerselskab A S increased its stake in Dynatrace by 149.1% in the 3rd quarter. BI Asset Management Fondsmaeglerselskab A S now owns 51,326 shares of the company's stock worth $2,487,000 after buying an additional 30,718 shares during the period. Finally, LBP AM SA increased its stake in Dynatrace by 9.8% in the 4th quarter. LBP AM SA now owns 776,955 shares of the company's stock worth $33,673,000 after buying an additional 69,318 shares during the period. Hedge funds and other institutional investors own 94.28% of the company's stock.

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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