Dynatrace (NYSE:DT) Trading Down 5.4% - Should You Sell?

Key Points

• Dynatrace shares fell by 5.4% during mid-day trading, with the stock price dropping to $47.90, significantly below its previous close of $50.65 and accompanied by a notable decrease in trading volume.
• Various analysts have set bullish price targets for Dynatrace, with Barclays and Goldman Sachs raising their targets to $62.00 and $64.00 respectively, contributing to a consensus target price of $62.72.
• The company reported a successful quarterly earnings release, posting a 19.5% year-over-year revenue increase and beating earnings expectations with $0.42 per share compared to $0.38 estimated.

Shares of Dynatrace, Inc. (NYSE:DT - Get Free Report) were down 5.4% during mid-day trading on Wednesday . The stock traded as low as $48.47 and last traded at $47.90. Approximately 752,963 shares were traded during mid-day trading, a decline of 75% from the average daily volume of 3,044,116 shares. The stock had previously closed at $50.65.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on DT shares. Barclays lifted their price target on shares of Dynatrace from $55.00 to $62.00 and gave the company an "overweight" rating in a research note on Thursday, May 15th. The Goldman Sachs Group lifted their price objective on shares of Dynatrace from $56.00 to $64.00 and gave the company a "buy" rating in a research report on Thursday, May 15th. Guggenheim lifted their price objective on shares of Dynatrace from $66.00 to $68.00 and gave the company a "buy" rating in a research report on Thursday, August 7th. BMO Capital Markets cut their price objective on shares of Dynatrace from $63.00 to $62.00 and set an "outperform" rating for the company in a report on Thursday, August 7th. Finally, Bank of America boosted their price objective on shares of Dynatrace from $62.00 to $64.00 and gave the company a "buy" rating in a report on Thursday, May 15th. One analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and six have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $62.72.

Dynatrace Stock Down 4.9%

The stock has a market capitalization of $14.52 billion, a P/E ratio of 29.57, a price-to-earnings-growth ratio of 4.39 and a beta of 0.91. The business's 50 day simple moving average is $51.29 and its two-hundred day simple moving average is $50.80.

Dynatrace (NYSE:DT - Get Free Report) last released its quarterly earnings data on Wednesday, August 6th. The company reported $0.42 earnings per share for the quarter, beating analysts' consensus estimates of $0.38 by $0.04. Dynatrace had a net margin of 27.75% and a return on equity of 9.15%. The firm had revenue of $477.35 million for the quarter, compared to analyst estimates of $467.39 million. During the same period last year, the firm earned $0.33 earnings per share. The business's quarterly revenue was up 19.5% compared to the same quarter last year. Analysts predict that Dynatrace, Inc. will post 0.68 earnings per share for the current year.

Insider Activity

In other Dynatrace news, CAO Daniel S. Yates sold 2,000 shares of the business's stock in a transaction on Thursday, September 4th. The shares were sold at an average price of $49.89, for a total transaction of $99,780.00. Following the transaction, the chief accounting officer directly owned 22,555 shares of the company's stock, valued at approximately $1,125,268.95. The trade was a 8.14% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Lisa M. Campbell sold 1,013 shares of the business's stock in a transaction on Friday, September 5th. The shares were sold at an average price of $49.77, for a total transaction of $50,417.01. Following the sale, the director owned 1,012 shares in the company, valued at approximately $50,367.24. This trade represents a 50.02% decrease in their position. The disclosure for this sale can be found here. Insiders sold 3,099 shares of company stock valued at $154,429 in the last quarter. Corporate insiders own 0.57% of the company's stock.

Institutional Investors Weigh In On Dynatrace

Several hedge funds and other institutional investors have recently made changes to their positions in DT. MAI Capital Management grew its holdings in Dynatrace by 122.4% during the 2nd quarter. MAI Capital Management now owns 547 shares of the company's stock valued at $30,000 after buying an additional 301 shares in the last quarter. VSM Wealth Advisory LLC bought a new position in shares of Dynatrace during the 2nd quarter valued at approximately $34,000. Eastern Bank bought a new position in shares of Dynatrace during the 2nd quarter valued at approximately $35,000. CX Institutional bought a new position in shares of Dynatrace during the 1st quarter valued at approximately $40,000. Finally, Brooklyn Investment Group boosted its position in shares of Dynatrace by 761.9% during the 1st quarter. Brooklyn Investment Group now owns 905 shares of the company's stock valued at $43,000 after acquiring an additional 800 shares during the last quarter. Hedge funds and other institutional investors own 94.28% of the company's stock.

About Dynatrace

Dynatrace, Inc provides a security platform for multicloud environments in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The company operates Dynatrace, a security platform, which provides application and microservices monitoring, runtime application security, infrastructure monitoring, log management and analytics, digital experience monitoring, digital business analytics, and cloud automation.

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