Eminence Capital LP Purchases 1,122,855 Shares of Dynatrace, Inc. $DT

Key Points

• Eminence Capital LP increased its Dynatrace stake by 33% in the fourth quarter, buying 1,122,855 more shares and bringing its total holdings to 4,527,266 shares worth about $196.2 million.
• Several analysts turned more bullish on Dynatrace, including UBS upgrading the stock to Buy with a $60 price target and BMO Capital Markets raising its target to $50 while reiterating Outperform.
• Dynatrace’s recent results showed solid operating momentum, with Q1 revenue up 19.4% year over year and earnings of $0.41 per share beating estimates, while investors remain focused on its AI observability growth story.

Eminence Capital LP lifted its position in Dynatrace, Inc. (NYSE:DT - Free Report) by 33.0% in the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 4,527,266 shares of the company's stock after acquiring an additional 1,122,855 shares during the quarter. Dynatrace accounts for 3.1% of Eminence Capital LP's portfolio, making the stock its 14th largest position. Eminence Capital LP owned about 1.52% of Dynatrace worth $196,212,000 at the end of the most recent reporting period.

A number of other large investors have also recently made changes to their positions in DT. NewEdge Advisors LLC boosted its position in shares of Dynatrace by 25.3% during the first quarter. NewEdge Advisors LLC now owns 9,135 shares of the company's stock valued at $431,000 after buying an additional 1,846 shares during the period. Jones Financial Companies Lllp lifted its stake in shares of Dynatrace by 19.2% during the 1st quarter. Jones Financial Companies Lllp now owns 2,161 shares of the company's stock worth $102,000 after acquiring an additional 348 shares during the last quarter. Northwestern Mutual Wealth Management Co. lifted its stake in shares of Dynatrace by 21.3% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 1,548 shares of the company's stock worth $85,000 after acquiring an additional 272 shares during the last quarter. Invesco Ltd. boosted its holdings in Dynatrace by 38.9% during the 2nd quarter. Invesco Ltd. now owns 793,630 shares of the company's stock valued at $43,816,000 after acquiring an additional 222,395 shares during the period. Finally, Marshall Wace LLP purchased a new position in Dynatrace during the 2nd quarter valued at $410,000. 94.28% of the stock is owned by hedge funds and other institutional investors.

Key Dynatrace News

Here are the key news stories impacting Dynatrace this week:

• Positive Sentiment: UBS initiated coverage with a Buy rating and a $60 price target, saying industry checks point to improving demand, AI-related growth opportunities, and attractive valuation. Dynatrace gains ‘Buy’ rating from UBS on expectations of accelerating growth, AI tailwinds
• Positive Sentiment: BMO Capital Markets raised its price target to $50 from $43 and reiterated an Outperform rating, reinforcing the view that DT still has room to run. Dynatrace had its price target raised by BMO Capital Markets
• Positive Sentiment: Recent commentary argues Dynatrace’s AI observability tools are becoming more important as traditional log tools struggle to keep up with AI complexity, which could support customer growth and usage trends. Dynatrace (DT) Says Traditional Log Tools Are Struggling To Keep Up With AI
• Positive Sentiment: Longer-term bullish takes point to solid fundamentals, including FY26 revenue growth of 19% to $2.02 billion, free cash flow of $530 million, and 110% dollar-based net retention, suggesting the business remains resilient despite broader SaaS concerns. Dynatrace: AI Agents Need More Monitoring
• Neutral Sentiment: Additional articles and analyst-call roundups also highlighted Dynatrace as a name benefiting from AI demand and potential upside, but they mostly echoed the same bullish thesis rather than adding new company-specific catalysts. Dynatrace gains ‘Buy’ rating from UBS on expectations of accelerating growth, AI tailwinds

Wall Street Analysts Forecast Growth

A number of analysts have weighed in on the company. TD Cowen reduced their target price on Dynatrace from $60.00 to $50.00 and set a "buy" rating on the stock in a research note on Wednesday, April 15th. Jefferies Financial Group lowered their target price on shares of Dynatrace from $50.00 to $45.00 and set a "buy" rating for the company in a research note on Thursday, May 14th. UBS Group raised shares of Dynatrace from a "neutral" rating to a "buy" rating and raised their price target for the stock from $36.00 to $60.00 in a research note on Monday. Weiss Ratings lowered shares of Dynatrace from a "hold (c-)" rating to a "sell (d+)" rating in a report on Monday, May 18th. Finally, Canaccord Genuity Group dropped their target price on shares of Dynatrace from $50.00 to $46.00 and set a "buy" rating on the stock in a research note on Thursday, May 14th. Twenty-two investment analysts have rated the stock with a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $47.69.

Dynatrace Stock Performance

NYSE DT opened at $41.32 on Thursday. Dynatrace, Inc. has a one year low of $31.64 and a one year high of $57.55. The company has a market capitalization of $12.04 billion, a price-to-earnings ratio of 76.51, a price-to-earnings-growth ratio of 2.68 and a beta of 0.75. The company's 50-day simple moving average is $38.66 and its two-hundred day simple moving average is $39.45.

Dynatrace (NYSE:DT - Get Free Report) last announced its quarterly earnings results 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 net margin of 8.06% and a return on equity of 10.37%. The company's revenue was up 19.4% compared to the same quarter last year. During the same quarter in the prior year, the company earned $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. Equities analysts expect that Dynatrace, Inc. will post 1.11 earnings per share for the current fiscal year.

Dynatrace Profile

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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