Dynatrace, Inc. $DT Shares Newly Purchased by AIA Group Ltd

Key Points

• AIA Group bought a new 80,300-share stake in Dynatrace during the third quarter, valued at approximately $4.64 million. Institutional investors and hedge funds collectively own 94.28% of the stock.
• Dynatrace beat quarterly estimates, reporting EPS of $0.54 versus $0.49 expected and revenue of $579.9 million, up 17.4% year over year. The board also authorized a $1 billion share repurchase, covering up to 6.3% of shares.
• Analysts have a consensus “Moderate Buy” rating and a $62 target price, though recent target changes are mixed. The article also notes an executive sold 50,000 shares under a pre-arranged trading plan.

AIA Group Ltd purchased a new stake in Dynatrace, Inc. (NYSE:DT - Free Report) during the 3rd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor purchased 80,300 shares of the company's stock, valued at approximately $4,637,000.

Several other institutional investors and hedge funds have also modified their holdings of the business. Apollon Wealth Management LLC boosted its holdings in Dynatrace by 2.9% in the 3rd quarter. Apollon Wealth Management LLC now owns 6,277 shares of the company's stock valued at $362,000 after purchasing an additional 174 shares during the period. Cooper Financial Group grew its position in shares of Dynatrace by 1.4% during the 3rd quarter. Cooper Financial Group now owns 13,354 shares of the company's stock worth $771,000 after purchasing an additional 179 shares in the last quarter. North Dakota State Investment Board grew its position in shares of Dynatrace by 2.9% during the 3rd quarter. North Dakota State Investment Board now owns 8,985 shares of the company's stock worth $519,000 after purchasing an additional 252 shares in the last quarter. Elevation Wealth Partners LLC increased its holdings in shares of Dynatrace by 37.8% during the third quarter. Elevation Wealth Partners LLC now owns 929 shares of the company's stock worth $54,000 after purchasing an additional 255 shares during the period. Finally, Versant Capital Management Inc increased its holdings in shares of Dynatrace by 2.8% during the third quarter. Versant Capital Management Inc now owns 11,694 shares of the company's stock worth $675,000 after purchasing an additional 315 shares during the period. 94.28% of the stock is currently owned by institutional investors and hedge funds.

Dynatrace Stock Performance

NYSE DT opened at $46.69 on Thursday. The company has a current ratio of 2.09, a quick ratio of 1.21 and a debt-to-equity ratio of 0.62. The firm has a market capitalization of $13.49 billion, a price-to-earnings ratio of 43.55, a P/E/G ratio of 2.88 and a beta of 0.76. The firm's 50 day simple moving average is $57.60 and its 200 day simple moving average is $44.66. Dynatrace, Inc. has a 1 year low of $31.64 and a 1 year high of $66.30.

Dynatrace (NYSE:DT - Get Free Report) last announced its quarterly earnings data on Tuesday, November 3rd. The company reported $0.54 EPS for the quarter, beating the consensus estimate of $0.49 by $0.05. Dynatrace had a net margin of 7.42% and a return on equity of 12.73%. The business had revenue of $579.92 million during the quarter, compared to the consensus estimate of $568.03 million. During the same period in the previous year, the business earned $0.44 earnings per share. The company's revenue was up 17.4% on a year-over-year basis. As a group, research analysts expect that Dynatrace, Inc. will post 1.11 earnings per share for the current fiscal year.

Dynatrace declared that its board has initiated a share buyback plan on Tuesday, November 3rd that allows the company to buy back $1 billion in outstanding shares. This repurchase authorization allows the company to reacquire up to 6.3% of its shares through open market purchases. Stock repurchase plans are typically an indication that the company's board believes its stock is undervalued.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on DT shares. BMO Capital Markets lifted their price target on shares of Dynatrace from $60.00 to $62.00 and gave the company an "outperform" rating in a research report on Tuesday, September 15th. Morgan Stanley raised Dynatrace from an "equal weight" rating to an "overweight" rating and increased their price target for the stock from $58.00 to $65.00 in a research report on Tuesday, August 25th. BTIG Research lowered their price objective on Dynatrace from $73.00 to $63.00 and set a "buy" rating on the stock in a research note on Tuesday. UBS Group dropped their price objective on Dynatrace from $80.00 to $75.00 and set a "buy" rating for the company in a report on Wednesday. Finally, Yorkville Ives started coverage on Dynatrace in a report on Tuesday, October 6th. They issued an "in-line" rating and a $62.00 price objective for the company. Twenty-four analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $62.00.

Insider Buying and Selling at Dynatrace

In related news, EVP Bernd Greifeneder sold 50,000 shares of the company's stock in a transaction on Friday, September 18th. The stock was sold at an average price of $57.21, for a total transaction of $2,860,500.00. Following the completion of the sale, the executive vice president directly owned 904,846 shares in the company, valued at $51,766,239.66. This represents a 5.24% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.69% of the company's stock.

Dynatrace News Roundup

Here are the key news stories impacting Dynatrace this week:

• Positive Sentiment: Dynatrace authorized a $1 billion share repurchase, covering up to 6.3% of its shares. Buybacks can signal management confidence and support per-share results. Share buyback report
• Positive Sentiment: Fiscal Q2 revenue of $579.9 million and adjusted EPS of $0.54 exceeded consensus estimates; revenue grew 17.4% year over year. Dynatrace Q2 results
• Neutral Sentiment: Several firms lowered their price targets but kept positive ratings: UBS to $75 and Citi to $70, both Buy; Barclays to $61, Overweight; and RBC to $68, Outperform. The retained ratings suggest analysts still see upside, though their reduced targets reflect more cautious expectations. UBS rating information
• Negative Sentiment: The main concern is the company’s reduced profit outlook, with reports also pointing to a weaker cash-flow forecast and acquisition-related effects. That outlook appears to have outweighed the quarterly beat and buyback. Earnings and outlook report
• Negative Sentiment: More target reductions—including Wells Fargo to $65, BMO to $60, and Wedbush to $50, which has a Neutral rating—reinforce concerns that near-term expectations have come down. BMO price-target update

About Dynatrace

Dynatrace, Inc provides an observability and application security platform designed to help organizations monitor, analyze and optimize complex digital environments. Its software uses artificial intelligence and automation to provide visibility across applications, infrastructure, cloud services, logs, user experiences and business operations.

The company's products support application performance monitoring, infrastructure monitoring, digital experience monitoring, log and analytics management, cloud automation and application security.

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