Dynatrace (NYSE:DT) Price Target Cut to $44.00 by Analysts at Scotiabank

Key Points

• Scotiabank cut Dynatrace’s price target from $47 to $44, while keeping a sector outperform rating. The new target still suggests about 20% upside from the previous close.
• Dynatrace recently reported a strong quarter, with EPS of $0.41 beating estimates and revenue of $531.7 million topping expectations. Revenue also rose 19.4% year over year.
• Despite the earnings beat, analysts have become more cautious overall, with several firms trimming price targets and some pointing to concerns about guidance. The broader consensus remains Moderate Buy, with an average target price of $48.46.

Dynatrace (NYSE:DT - Get Free Report) had its price target dropped by stock analysts at Scotiabank from $47.00 to $44.00 in a research note issued to investors on Thursday,Benzinga reports. The brokerage presently has a "sector outperform" rating on the stock. Scotiabank's target price would indicate a potential upside of 20.29% from the stock's previous close.

Several other analysts have also recently weighed in on the company. Morgan Stanley set a $40.00 price objective on Dynatrace in a report on Thursday. Wedbush lowered their price target on Dynatrace from $67.00 to $55.00 and set an "outperform" rating for the company in a research note on Wednesday, February 11th. DA Davidson raised Dynatrace to a "strong-buy" rating in a research note on Thursday, April 30th. TD Cowen lowered their price target on Dynatrace from $60.00 to $50.00 and set a "buy" rating for the company in a research note on Wednesday, April 15th. Finally, Truist Financial set a $45.00 price target on Dynatrace in a research note on Wednesday, April 15th. One analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and seven have issued a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $48.46.

Dynatrace Stock Performance

NYSE:DT traded up $1.85 on Thursday, hitting $36.58. 2,545,296 shares of the stock were exchanged, compared to its average volume of 6,812,778. The stock has a market capitalization of $10.91 billion, a price-to-earnings ratio of 59.98, a P/E/G ratio of 2.39 and a beta of 0.70. Dynatrace has a 52 week low of $31.64 and a 52 week high of $57.55. The company's 50-day moving average price is $37.10 and its 200 day moving average price is $40.49.

Dynatrace (NYSE:DT - Get Free Report) last announced its quarterly earnings data on Wednesday, May 13th. The company reported $0.41 earnings per share for the quarter, topping the consensus estimate of $0.39 by $0.02. The firm had revenue of $531.72 million during the quarter, compared to analysts' expectations of $521.01 million. Dynatrace had a return on equity of 9.75% and a net margin of 9.55%.The company's quarterly revenue was up 19.4% compared to the same quarter last year. During the same period in the previous year, the business posted $0.33 EPS. 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, equities research analysts predict that Dynatrace will post 0.88 earnings per share for the current year.

Dynatrace announced that its Board of Directors has initiated a share repurchase program on Monday, February 9th that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the company to reacquire up to 9.8% of its stock through open market purchases. Stock buyback programs are often an indication that the company's leadership believes its stock is undervalued.

Insiders Place Their Bets

In other Dynatrace news, EVP Stephen A. Mcmahon purchased 3,000 shares of the company's stock in a transaction that occurred on Tuesday, March 3rd. The shares were acquired at an average price of $35.75 per share, for a total transaction of $107,250.00. Following 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 acquisition was disclosed in a document filed with the SEC, which is accessible through this link. Company insiders own 0.57% of the company's stock.

Institutional Investors Weigh In On Dynatrace

Large investors have recently added to or reduced their stakes in the business. V Square Quantitative Management LLC bought a new stake in Dynatrace in the 4th quarter valued at $26,000. Cornerstone Planning Group LLC raised its stake in Dynatrace by 561.4% in the 3rd quarter. Cornerstone Planning Group LLC now owns 582 shares of the company's stock valued at $28,000 after acquiring an additional 494 shares during the period. Brown Lisle Cummings Inc. raised its stake in Dynatrace by 218.8% in the 1st quarter. Brown Lisle Cummings Inc. now owns 797 shares of the company's stock valued at $29,000 after acquiring an additional 547 shares during the period. RHL Group LLC bought a new stake in Dynatrace in the 4th quarter valued at $30,000. Finally, Larson Financial Group LLC raised its stake in Dynatrace by 168.8% in the 4th quarter. Larson Financial Group LLC now owns 809 shares of the company's stock valued at $35,000 after acquiring an additional 508 shares during the period. Institutional investors own 94.28% of the company's stock.

Dynatrace News Roundup

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 $0.39 expected and revenue of $531.7 million versus $521.0 million expected, with revenue up 19.4% year over year. Dynatrace Reports Fourth Quarter and Full Year Fiscal 2026 Financial Results
• Positive Sentiment: The company said it surpassed $2 billion in annual recurring revenue and delivered its fourth straight quarter of 16% constant-currency ARR growth, signaling continued demand for its observability platform. Dynatrace Reports Fourth Quarter and Full Year Fiscal 2026 Financial Results
• Positive Sentiment: Dynatrace also raised guidance: fiscal 2027 EPS guidance of $1.93-$1.95 came in above consensus, and first-quarter EPS guidance of $0.44-$0.45 was also ahead of estimates. Dynatrace Reports Fourth Quarter and Full Year Fiscal 2026 Financial Results
• Neutral Sentiment: Several analysts adjusted forecasts after the report, with BMO Capital Markets trimming its price target to $43 from $45 while keeping an outperform rating, and BTIG cutting its target to $47 from $53 with a buy rating. Article on analyst forecast cuts
• Negative Sentiment: Despite the strong quarter, shares are slipping because investors appear disappointed by first-quarter sales guidance that came in below estimates, overshadowing the earnings beat. Article on guidance concerns
• Negative Sentiment: Guggenheim also downgraded Dynatrace to neutral from buy, adding to the cautious tone around the stock after earnings. Guggenheim downgrade reference

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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