Stephens Investment Management Group LLC Purchases 64,229 Shares of Dynatrace, Inc. $DT

Key Points

• Stephens Investment Management Group boosted its Dynatrace stake by 6.2% in the fourth quarter, buying 64,229 shares and ending with 1,104,704 shares worth about $47.9 million.
• Dynatrace recently beat fiscal Q4 expectations, reporting EPS of $0.41 versus $0.39 expected and revenue of $531.7 million, up 19.4% year over year.
• Despite the earnings beat, investors and analysts were cautious because near-term guidance was mixed; several firms lowered price targets, though many still maintain Buy ratings and the company has authorized a $1 billion share repurchase plan.

Stephens Investment Management Group LLC increased its position in Dynatrace, Inc. (NYSE:DT - Free Report) by 6.2% in the 4th quarter, according to its most recent 13F filing with the SEC. The firm owned 1,104,704 shares of the company's stock after buying an additional 64,229 shares during the period. Stephens Investment Management Group LLC owned about 0.37% of Dynatrace worth $47,878,000 at the end of the most recent quarter.

Other hedge funds also recently bought and sold shares of the company. V Square Quantitative Management LLC bought a new position in Dynatrace in the 4th quarter worth $26,000. Cornerstone Planning Group LLC boosted its holdings in Dynatrace by 561.4% in the 3rd quarter. Cornerstone Planning Group LLC now owns 582 shares of the company's stock worth $28,000 after buying an additional 494 shares during the period. Hazlett Burt & Watson Inc. bought a new position in Dynatrace in the 3rd quarter worth $37,000. First Horizon Corp bought a new position in Dynatrace in the 3rd quarter worth $39,000. Finally, True Wealth Design LLC boosted its holdings in Dynatrace by 99.6% in the 4th quarter. True Wealth Design LLC now owns 896 shares of the company's stock worth $39,000 after buying an additional 447 shares during the period. Institutional investors own 94.28% of the company's stock.

Key Stories Impacting Dynatrace

Here are the key news stories impacting Dynatrace this week:

• Positive Sentiment: Dynatrace reported fiscal Q4 EPS of $0.41, topping estimates of $0.39, and revenue of $531.7 million, up 19.4% year over year, while recurring subscription revenue remained very high and free cash flow stayed strong. Dynatrace shares slide despite quarterly earnings beat
• Positive Sentiment: Several brokers kept bullish views despite trimming targets, including Scotiabank, JPMorgan, Citigroup, and BMO, signaling continued confidence in Dynatrace’s long-term software and observability franchise. Scotiabank Sticks to Their Buy Rating for Dynatrace (DT)
• Neutral Sentiment: Analyst commentary today was mostly mixed-to-bullish overall, with some articles highlighting favorable tech-stock sentiment for Dynatrace but also noting conflicting views across analysts. Analysts Have Conflicting Sentiments on These Technology Companies
• Neutral Sentiment: Some commentary suggested Dynatrace could benefit from broader software and AI observability trends, but these were more thematic than company-specific catalysts. Can Dynatrace Benefit From Russell 1000 Software Trends?
• Negative Sentiment: Despite the earnings beat, investors were disappointed by mixed FY2027 and near-term guidance, including concerns about slower ARR growth and a softer first-quarter outlook. Dynatrace stock falls on fiscal Q4 earnings, mixed 2027 guidance
• Negative Sentiment: Wall Street lowered several price targets after the report, including JPMorgan, Citigroup, Scotiabank, and BMO, reflecting a more cautious stance on near-term upside. Dynatrace NYSE: DT Price Target Lowered to $45.00 at JPMorgan Chase & Co.

Dynatrace Stock Up 3.3%

DT opened at $38.36 on Friday. The firm has a 50-day simple moving average of $37.12 and a two-hundred day simple moving average of $40.38. Dynatrace, Inc. has a 52 week low of $31.64 and a 52 week high of $57.55. The company has a market capitalization of $11.44 billion, a PE ratio of 71.04, a price-to-earnings-growth ratio of 2.34 and a beta of 0.70.

Dynatrace (NYSE:DT - Get Free Report) last released its quarterly earnings data on Wednesday, May 13th. The company reported $0.41 EPS for the quarter, beating the consensus estimate of $0.39 by $0.02. The business had revenue of $531.72 million during the quarter, compared to the consensus estimate of $521.01 million. Dynatrace had a net margin of 8.06% and a return on equity of 10.37%. The business's revenue was up 19.4% on a year-over-year basis. During the same quarter in the prior year, the firm 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. As a group, sell-side analysts expect that Dynatrace, Inc. will post 1.08 earnings per share for the current year.

Dynatrace announced that its Board of Directors has initiated a stock repurchase plan on Monday, February 9th that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the company to repurchase up to 9.8% of its stock through open market purchases. Stock buyback plans are often a sign that the company's management believes its shares are undervalued.

Analyst Ratings Changes

Several research analysts have commented on DT shares. Keefe, Bruyette & Woods raised shares of Dynatrace to a "buy" rating in a report on Monday, February 9th. Jefferies Financial Group dropped their price objective on shares of Dynatrace from $50.00 to $45.00 and set a "buy" rating for the company in a report on Thursday. The Goldman Sachs Group began coverage on shares of Dynatrace in a report on Tuesday, April 21st. They set a "buy" rating and a $45.00 price objective for the company. Cantor Fitzgerald dropped their price objective on shares of Dynatrace from $51.00 to $37.00 and set a "neutral" rating for the company in a report on Friday, February 6th. Finally, Rosenblatt Securities dropped their price objective on shares of Dynatrace from $60.00 to $52.00 and set a "buy" rating for the company in a report on Friday, May 1st. Twenty equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $46.50.

Insider Activity

In other Dynatrace news, EVP Stephen A. Mcmahon bought 3,000 shares of the firm's stock in a transaction dated Tuesday, March 3rd. The shares were purchased at an average cost of $35.75 per share, for a total transaction of $107,250.00. Following the transaction, the executive vice president owned 3,454 shares of the company's stock, valued at $123,480.50. This represents a 660.79% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Corporate insiders own 0.57% 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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