Dynatrace (NYSE:DT) Trading Down 8.2% - Time to Sell?

Key Points

• Shares tumbled 8.2% to $33.80 on Thursday, with ~3.9 million shares traded (about 43% below the average daily volume).
• Dynatrace beat Q results (EPS $0.44 vs $0.41, revenue $515.5M vs $506.3M, revenue +18.2% YoY), announced a $1.0 billion buyback (up to 9.8% of shares) and gave FY2026 EPS guidance of 1.670–1.690.
• Analysts maintain a consensus "Moderate Buy" (19 Buy, 6 Hold) with an average target price of $53.48, though several firms recently trimmed their price targets.

Dynatrace, Inc. (NYSE:DT - Get Free Report)'s share price dropped 8.2% during trading on Thursday . The stock traded as low as $33.76 and last traded at $33.80. Approximately 3,894,466 shares were traded during trading, a decline of 43% from the average daily volume of 6,790,259 shares. The stock had previously closed at $36.80.

Analyst Upgrades and Downgrades

DT has been the topic of several analyst reports. Weiss Ratings reissued a "hold (c)" rating on shares of Dynatrace in a research report on Monday, December 29th. Citigroup reduced their price objective on shares of Dynatrace from $64.00 to $60.00 and set a "buy" rating for the company in a research note on Friday, January 16th. Canaccord Genuity Group set a $50.00 price objective on shares of Dynatrace in a research note on Tuesday, February 10th. KeyCorp boosted their price objective on shares of Dynatrace from $50.00 to $52.00 and gave the stock an "overweight" rating in a research note on Tuesday, February 10th. Finally, Barclays reduced their price objective on shares of Dynatrace from $57.00 to $47.00 and set an "overweight" rating for the company in a research note on Tuesday, February 10th. Nineteen analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $53.48.

Dynatrace Stock Down 7.9%

The company has a market capitalization of $10.11 billion, a price-to-earnings ratio of 55.48, a P/E/G ratio of 2.49 and a beta of 0.79. The company has a 50-day moving average price of $37.01 and a 200-day moving average price of $42.57.

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

Dynatrace announced that its board has authorized a stock buyback plan on Monday, February 9th that authorizes the company to repurchase $1.00 billion in shares. This repurchase authorization authorizes the company to reacquire up to 9.8% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company's board believes its shares are undervalued.

Insider Buying and Selling at Dynatrace

In related news, EVP Stephen A. Mcmahon bought 3,000 shares of Dynatrace stock in a transaction that occurred on Tuesday, March 3rd. The stock was acquired at an average price of $35.75 per share, for a total transaction of $107,250.00. Following the completion of the purchase, the executive vice president owned 3,454 shares in the company, valued at approximately $123,480.50. This represents 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 hyperlink. Insiders own 0.57% of the company's stock.

Institutional Investors Weigh In On Dynatrace

Several hedge funds have recently made changes to their positions in the stock. Vanguard Group Inc. lifted its stake in shares of Dynatrace by 2.4% in the third quarter. Vanguard Group Inc. now owns 32,142,909 shares of the company's stock valued at $1,557,324,000 after buying an additional 739,895 shares during the period. Pictet Asset Management Holding SA lifted its stake in Dynatrace by 16.5% during the fourth quarter. Pictet Asset Management Holding SA now owns 14,648,533 shares of the company's stock worth $634,985,000 after purchasing an additional 2,076,990 shares during the period. State Street Corp lifted its stake in Dynatrace by 1.0% during the fourth quarter. State Street Corp now owns 10,664,357 shares of the company's stock worth $462,193,000 after purchasing an additional 101,994 shares during the period. Wellington Management Group LLP lifted its stake in Dynatrace by 9.0% during the fourth quarter. Wellington Management Group LLP now owns 7,999,919 shares of the company's stock worth $346,716,000 after purchasing an additional 659,792 shares during the period. Finally, American Century Companies Inc. lifted its stake in Dynatrace by 0.9% during the third quarter. American Century Companies Inc. now owns 7,919,446 shares of the company's stock worth $383,697,000 after purchasing an additional 73,827 shares during the period. Institutional investors own 94.28% of the company's stock.

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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