Dynatrace (NYSE:DT) Coverage Initiated at William Blair

Key Points

• William Blair initiated coverage on Dynatrace with an “outperform” rating, adding to generally bullish Wall Street sentiment on the stock.
• Several analysts recently trimmed their price targets, but the overall consensus remains Moderate Buy with an average target price of $46.50.
• Dynatrace shares were down 1.4% to $39.32, even after the company recently reported better-than-expected earnings and revenue for the quarter.

Stock analysts at William Blair initiated coverage on shares of Dynatrace (NYSE:DT - Get Free Report) in a research note issued to investors on Thursday. The brokerage set an "outperform" rating on the stock.

A number of other research analysts also recently weighed in on the company. BMO Capital Markets cut their price target on Dynatrace from $45.00 to $43.00 and set an "outperform" rating on the stock in a research note on Thursday, May 14th. Morgan Stanley cut their target price on Dynatrace from $43.00 to $40.00 and set an "equal weight" rating on the stock in a research note on Thursday, May 14th. Truist Financial set a $45.00 target price on Dynatrace in a research report on Wednesday, April 15th. KeyCorp lowered their price target on Dynatrace from $52.00 to $47.00 and set an "overweight" rating for the company in a research note on Thursday, May 14th. Finally, Scotiabank reduced their price objective on shares of Dynatrace from $47.00 to $44.00 and set a "sector outperform" rating on the stock in a research note on Thursday, May 14th. Twenty-one research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Dynatrace currently has a consensus rating of "Moderate Buy" and a consensus target price of $46.50.

Dynatrace Trading Down 1.4%

NYSE DT traded down $0.55 during trading hours on Thursday, reaching $39.32. 214,365 shares of the company's stock were exchanged, compared to its average volume of 6,842,957. The stock has a market cap of $11.73 billion, a PE ratio of 72.66, a price-to-earnings-growth ratio of 2.68 and a beta of 0.70. The firm has a fifty day moving average of $37.16 and a 200-day moving average of $40.11. Dynatrace has a one year low of $31.64 and a one year high of $57.55.

Dynatrace (NYSE:DT - Get Free Report) last announced its earnings results on Wednesday, May 13th. The company reported $0.41 earnings per share for the quarter, topping analysts' consensus estimates of $0.39 by $0.02. The company had revenue of $531.72 million during the quarter, compared to the consensus estimate of $521.01 million. Dynatrace had a net margin of 8.06% and a return on equity of 10.37%. The company's revenue was up 19.4% on a year-over-year basis. During the same period in the previous year, the firm posted $0.33 earnings per share. Dynatrace has set its FY 2027 guidance at 1.930-1.950 EPS and its Q1 2027 guidance at 0.440-0.450 EPS. As a group, research analysts forecast that Dynatrace will post 1.08 EPS for the current year.

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

Insider Transactions at Dynatrace

In other news, EVP Stephen A. Mcmahon acquired 3,000 shares of the stock in a transaction on Tuesday, March 3rd. The stock was acquired at an average cost of $35.75 per share, for a total transaction of $107,250.00. Following the completion of the transaction, the executive vice president directly owned 3,454 shares in the company, valued at approximately $123,480.50. This trade represents a 660.79% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available through the SEC website. 0.57% of the stock is owned by company insiders.

Hedge Funds Weigh In On Dynatrace

Institutional investors have recently modified their holdings of the business. Cim LLC grew its holdings in shares of Dynatrace by 1.0% during the 3rd quarter. Cim LLC now owns 22,184 shares of the company's stock valued at $1,075,000 after purchasing an additional 228 shares during the last quarter. Orion Porfolio Solutions LLC grew its holdings in Dynatrace by 1.4% during the 3rd quarter. Orion Porfolio Solutions LLC now owns 16,983 shares of the company's stock worth $823,000 after acquiring an additional 231 shares during the last quarter. GAMMA Investing LLC increased its position in Dynatrace by 7.7% in the 4th quarter. GAMMA Investing LLC now owns 3,460 shares of the company's stock valued at $150,000 after acquiring an additional 246 shares during the period. Assetmark Inc. raised its stake in shares of Dynatrace by 0.7% during the fourth quarter. Assetmark Inc. now owns 36,629 shares of the company's stock valued at $1,588,000 after acquiring an additional 248 shares during the last quarter. Finally, Northwestern Mutual Investment Management Company LLC raised its stake in shares of Dynatrace by 0.4% during the third quarter. Northwestern Mutual Investment Management Company LLC now owns 67,205 shares of the company's stock valued at $3,256,000 after acquiring an additional 264 shares during the last quarter. Institutional investors and hedge funds 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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