Dynatrace, Inc. (NYSE:DT) Sees Large Decline in Short Interest

Key Points

• Short interest fell 13.4% in March to 7,971,056 shares (about 2.7% of shares short) with a short-interest ratio of 1.2 days based on average daily volume.
• Analysts hold a consensus rating of "Moderate Buy" (19 Buys, 6 Holds) with a consensus target price of $53.48.
• Dynatrace beat Q1 estimates (EPS $0.44 vs. $0.41; revenue $515.5M vs. $506.3M, revenue +18.2% YoY) and authorized a $1.00 billion share buyback (up to 9.8% of shares).

Dynatrace, Inc. (NYSE:DT - Get Free Report) was the target of a significant decrease in short interest during the month of March. As of March 13th, there was short interest totaling 7,971,056 shares, a decrease of 13.4% from the February 26th total of 9,207,674 shares. Based on an average daily trading volume, of 6,602,828 shares, the short-interest ratio is currently 1.2 days. Currently, 2.7% of the shares of the company are short sold.

Wall Street Analysts Forecast Growth

Several research firms recently issued reports on DT. DA Davidson reduced their target price on shares of Dynatrace from $65.00 to $50.00 and set a "buy" rating for the company in a report on Tuesday, February 10th. Rosenblatt Securities lowered their target price on shares of Dynatrace from $67.00 to $60.00 and set a "buy" rating on the stock in a research note on Friday, January 30th. Robert W. Baird set a $47.00 target price on shares of Dynatrace in a report on Tuesday, February 10th. Weiss Ratings reissued a "hold (c)" rating on shares of Dynatrace in a report on Monday, December 29th. Finally, Keefe, Bruyette & Woods upgraded Dynatrace to a "buy" rating in a research report on Monday, February 9th. Nineteen analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to MarketBeat.com, Dynatrace has a consensus rating of "Moderate Buy" and a consensus target price of $53.48.

Dynatrace Stock Performance

Shares of NYSE DT opened at $37.05 on Tuesday. The company has a market cap of $11.05 billion, a P/E ratio of 60.74, a P/E/G ratio of 2.86 and a beta of 0.82. Dynatrace has a 52-week low of $32.83 and a 52-week high of $57.55. The firm's fifty day moving average is $37.45 and its two-hundred day moving average is $43.08.

Dynatrace (NYSE:DT - Get Free Report) last released its quarterly earnings data on Monday, February 9th. The company reported $0.44 EPS for the quarter, beating the consensus estimate of $0.41 by $0.03. The business had revenue of $515.47 million during the quarter, compared to the consensus estimate of $506.31 million. Dynatrace had a net margin of 9.55% and a return on equity of 9.75%. The business's revenue was up 18.2% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.37 EPS. Dynatrace has set its FY 2026 guidance at 1.670-1.690 EPS and its Q4 2026 guidance at 0.380-0.390 EPS. As a group, analysts forecast that Dynatrace will post 0.68 EPS for the current fiscal year.

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

Insider Activity at Dynatrace

In related 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 purchase, the executive vice president directly owned 3,454 shares of the company's stock, valued at approximately $123,480.50. This trade represents a 660.79% increase in their position. The purchase was disclosed in a filing with the SEC, which is accessible through this link. 0.57% of the stock is owned by company insiders.

Institutional Trading of Dynatrace

A number of large investors have recently added to or reduced their stakes in the company. NewEdge Advisors LLC raised its holdings in shares of Dynatrace by 25.3% during the 1st quarter. NewEdge Advisors LLC now owns 9,135 shares of the company's stock worth $431,000 after acquiring an additional 1,846 shares in the last quarter. Jones Financial Companies Lllp increased its position in Dynatrace by 19.2% in the first quarter. Jones Financial Companies Lllp now owns 2,161 shares of the company's stock worth $102,000 after purchasing an additional 348 shares during the last quarter. MAI Capital Management increased its position in Dynatrace by 122.4% in the second quarter. MAI Capital Management now owns 547 shares of the company's stock worth $30,000 after purchasing an additional 301 shares during the last quarter. Korea Investment CORP raised its stake in Dynatrace by 24.1% during the second quarter. Korea Investment CORP now owns 160,665 shares of the company's stock valued at $8,870,000 after purchasing an additional 31,200 shares in the last quarter. Finally, State Board of Administration of Florida Retirement System lifted its position in Dynatrace by 1.4% during the second quarter. State Board of Administration of Florida Retirement System now owns 253,311 shares of the company's stock valued at $13,985,000 after purchasing an additional 3,546 shares during the last quarter. 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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