Dynatrace, Inc. $DT Stock: Boston Trust Walden Corp Increases Stake

Key Points

• Boston Trust Walden increased its Dynatrace stake by 31.2% in the third quarter, adding 409,003 shares to reach 1.72 million shares, worth about $99.3 million.
• Dynatrace reported quarterly revenue of $579.9 million, up 17.4% year over year, and adjusted EPS of $0.54, beating analyst estimates. The company also authorized a $1 billion share repurchase.
• Despite the earnings beat and buyback, the company’s reduced profit and cash-flow outlook has weighed on sentiment, while several analysts have cut price targets, though most maintain positive ratings.

Boston Trust Walden Corp raised its holdings in Dynatrace, Inc. (NYSE:DT - Free Report) by 31.2% during the third quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 1,719,609 shares of the company's stock after buying an additional 409,003 shares during the quarter. Dynatrace accounts for about 0.8% of Boston Trust Walden Corp's investment portfolio, making the stock its 22nd largest position. Boston Trust Walden Corp owned about 0.60% of Dynatrace worth $99,290,000 at the end of the most recent quarter.

Several other institutional investors also recently added to or reduced their stakes in the business. CX Institutional boosted its position in shares of Dynatrace by 1,119.0% in the second quarter. CX Institutional now owns 707 shares of the company's stock valued at $31,000 after acquiring an additional 649 shares during the period. Mirae Asset Global Investments Co. Ltd. bought a new position in Dynatrace during the third quarter worth $39,000. Elevation Wealth Partners LLC increased its position in 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 acquiring an additional 255 shares during the period. EverSource Wealth Advisors LLC increased its position in Dynatrace by 115.7% during the first quarter. EverSource Wealth Advisors LLC now owns 1,512 shares of the company's stock worth $56,000 after acquiring an additional 811 shares during the period. Finally, Provenance Wealth Advisors LLC acquired a new position in Dynatrace during the 3rd quarter valued at $61,000. 94.28% of the stock is owned by institutional investors.

Key Stories Impacting Dynatrace

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

Analyst Upgrades and Downgrades

DT has been the subject of a number of research reports. Morgan Stanley raised shares of Dynatrace from an "equal weight" rating to an "overweight" rating and increased their price target for the company from $58.00 to $65.00 in a report on Tuesday, August 25th. TD Cowen raised their price target on shares of Dynatrace from $62.00 to $68.00 and gave the stock a "buy" rating in a research report on Monday, October 26th. Royal Bank Of Canada dropped their price objective on shares of Dynatrace from $73.00 to $68.00 and set an "outperform" rating on the stock in a report on Wednesday. BNP Paribas Exane raised shares of Dynatrace from a "neutral" rating to an "outperform" rating and set a $75.00 price objective for the company in a research report on Thursday, October 8th. Finally, Weiss Ratings raised shares of Dynatrace from a "hold (c-)" rating to a "hold (c)" rating in a research report on Wednesday, September 16th. Twenty-four analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $62.00.

Insiders Place Their Bets

In other Dynatrace news, EVP Bernd Greifeneder sold 50,000 shares of the business's stock in a transaction on Friday, September 18th. The shares were sold at an average price of $57.21, for a total value of $2,860,500.00. Following the sale, the executive vice president owned 904,846 shares of the company's stock, valued at $51,766,239.66. The trade was a 5.24% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.69% of the stock is owned by corporate insiders.

Dynatrace Price Performance

Shares of NYSE:DT opened at $46.69 on Thursday. Dynatrace, Inc. has a 1-year low of $31.64 and a 1-year high of $66.30. The firm has a market capitalization of $13.49 billion, a PE ratio of 86.47, a PEG ratio of 2.88 and a beta of 0.76. The business's 50 day moving average is $57.60 and its 200-day moving average is $44.66. The company has a current ratio of 2.09, a quick ratio of 1.21 and a debt-to-equity ratio of 0.62.

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

Dynatrace declared that its board has approved a share repurchase program on Tuesday, November 3rd that allows the company to repurchase $1 billion in shares. This buyback authorization allows the company to purchase up to 6.3% of its stock through open market purchases. Share buyback programs are generally a sign that the company's leadership believes its stock is undervalued.

Dynatrace Company Profile

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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