Handelsbanken Fonder AB Sells 735,000 Shares of Dynatrace, Inc. $DT

Key Points

• Handelsbanken Fonder AB cut its Dynatrace stake by 32.6% in the fourth quarter, selling 735,000 shares and ending with 1,522,400 shares valued at about $65.98 million.
• Dynatrace reported better-than-expected quarterly results, posting EPS of $0.41 versus estimates of $0.39 and revenue of $531.72 million, up 19.4% year over year.
• The company also has a $1 billion share repurchase program in place, while analysts currently rate the stock a consensus “Moderate Buy” with an average price target of $46.50.

Handelsbanken Fonder AB lessened its stake in Dynatrace, Inc. (NYSE:DT - Free Report) by 32.6% in the 4th quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 1,522,400 shares of the company's stock after selling 735,000 shares during the period. Handelsbanken Fonder AB owned about 0.50% of Dynatrace worth $65,981,000 at the end of the most recent reporting period.

Several other hedge funds have also 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 2.8% during the third quarter. State Street Corp now owns 10,562,363 shares of the company's stock worth $511,746,000 after purchasing an additional 286,352 shares during the period. 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. Finally, Wellington Management Group LLP lifted its stake in Dynatrace by 719.3% during the third quarter. Wellington Management Group LLP now owns 7,340,127 shares of the company's stock worth $355,629,000 after purchasing an additional 6,444,262 shares during the period. Institutional investors own 94.28% of the company's stock.

Dynatrace Price Performance

Shares of Dynatrace stock opened at $39.79 on Tuesday. The firm has a market cap of $11.87 billion, a P/E ratio of 73.68, a P/E/G ratio of 2.57 and a beta of 0.70. The firm has a 50 day simple moving average of $37.13 and a 200 day simple moving average of $40.24. Dynatrace, Inc. has a fifty-two week low of $31.64 and a fifty-two week high of $57.55.

Dynatrace (NYSE:DT - Get Free Report) last issued its quarterly earnings results on Wednesday, May 13th. The company reported $0.41 earnings per share for the quarter, beating analysts' consensus estimates of $0.39 by $0.02. Dynatrace had a net margin of 8.06% and a return on equity of 10.37%. The business had revenue of $531.72 million during the quarter, compared to analyst estimates of $521.01 million. During the same quarter last year, the business posted $0.33 earnings per share. Dynatrace's revenue for the quarter was up 19.4% compared to the same quarter last year. Dynatrace has set its FY 2027 guidance at 1.930-1.950 EPS and its Q1 2027 guidance at 0.440-0.450 EPS. On average, sell-side analysts expect that Dynatrace, Inc. will post 1.08 EPS for the current year.

Dynatrace announced that its board has approved a share repurchase program on Monday, February 9th that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the company to reacquire up to 9.8% of its shares through open market purchases. Shares buyback programs are often a sign that the company's board believes its shares are undervalued.

Insider Buying and Selling

In other Dynatrace news, EVP Stephen A. Mcmahon bought 3,000 shares of the stock in a transaction on Tuesday, March 3rd. The stock was purchased at an average price of $35.75 per share, with a total value of $107,250.00. Following the acquisition, the executive vice president owned 3,454 shares of the company's stock, valued at approximately $123,480.50. The trade was a 660.79% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Corporate insiders own 0.57% of the company's stock.

Analysts Set New Price Targets

A number of research analysts have commented on DT shares. Wolfe Research restated an "outperform" rating and set a $42.00 price target on shares of Dynatrace in a research note on Thursday. Rosenblatt Securities cut their price target on shares of Dynatrace from $60.00 to $52.00 and set a "buy" rating for the company in a research note on Friday, May 1st. Raymond James Financial reiterated a "market perform" rating on shares of Dynatrace in a research note on Monday, February 9th. Canaccord Genuity Group cut their target price on shares of Dynatrace from $50.00 to $46.00 and set a "buy" rating for the company in a research note on Thursday. Finally, Wedbush set a $48.00 target price on shares of Dynatrace in a research note on Friday. Twenty analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $46.50.

Dynatrace Company 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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