Dynatrace Sees Unusually High Options Volume (NYSE:DT)

Key Points

• Options activity surged: Traders bought 4,386 Dynatrace call options, about 28% above the typical volume of 3,440 contracts.
• Shares declined modestly: Dynatrace stock fell $1.08 to $56.61, while the company reported quarterly EPS and revenue above analyst expectations, with revenue up 16.3% year over year.
• Analyst sentiment remains positive: Twenty-four analysts rate the stock a Buy and eight rate it a Hold, producing a “Moderate Buy” consensus and an average price target of $63.97.

Dynatrace, Inc. (NYSE:DT - Get Free Report) was the target of unusually large options trading on Monday. Traders bought 4,386 call options on the company. This is an increase of approximately 28% compared to the typical volume of 3,440 call options.

Dynatrace Price Performance

Shares of NYSE:DT traded down $1.08 during trading on Monday, hitting $56.61. 2,506,243 shares of the company's stock were exchanged, compared to its average volume of 6,549,183. Dynatrace has a 52-week low of $31.64 and a 52-week high of $66.30. The business's 50-day simple moving average is $57.59 and its 200 day simple moving average is $44.52. The company has a market cap of $16.36 billion, a price-to-earnings ratio of 113.11, a PEG ratio of 3.54 and a beta of 0.76.

Dynatrace (NYSE:DT - Get Free Report) last issued its earnings results on Wednesday, August 5th. The company reported $0.48 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.45 by $0.03. Dynatrace had a return on equity of 11.07% and a net margin of 7.22%. The company had revenue of $554.55 million for the quarter, compared to the consensus estimate of $550.01 million. During the same quarter last year, the company earned $0.42 EPS. The firm's quarterly revenue was up 16.3% on a year-over-year basis. Dynatrace has set its Q2 2027 guidance at 0.480-0.490 EPS and its FY 2027 guidance at 1.970-1.990 EPS. On average, sell-side analysts anticipate that Dynatrace will post 1.11 EPS for the current fiscal year.

Insider Buying and Selling at Dynatrace

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

Hedge Funds Weigh In On Dynatrace

Hedge funds and other institutional investors have recently modified their holdings of the stock. Wellington Management Group LLP boosted its holdings in shares of Dynatrace by 23.5% during the 2nd quarter. Wellington Management Group LLP now owns 11,528,792 shares of the company's stock valued at $506,229,000 after purchasing an additional 2,191,497 shares during the last quarter. Bank of America Corp DE increased its holdings in shares of Dynatrace by 304.7% in the first quarter. Bank of America Corp DE now owns 9,357,612 shares of the company's stock worth $346,044,000 after purchasing an additional 7,045,591 shares during the last quarter. First Trust Advisors LP increased its holdings in shares of Dynatrace by 706.8% in the first quarter. First Trust Advisors LP now owns 6,801,507 shares of the company's stock worth $251,520,000 after purchasing an additional 5,958,505 shares during the last quarter. Amundi lifted its position in shares of Dynatrace by 461.5% in the first quarter. Amundi now owns 6,238,938 shares of the company's stock worth $230,716,000 after buying an additional 5,127,910 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership purchased a new stake in shares of Dynatrace in the first quarter worth about $190,890,000. Institutional investors own 94.28% of the company's stock.

Analyst Upgrades and Downgrades

Several analysts have issued reports on DT shares. Royal Bank Of Canada boosted their price target on Dynatrace from $59.00 to $73.00 and gave the company an "outperform" rating in a report on Monday, October 12th. Wedbush cut shares of Dynatrace from an "outperform" rating to a "neutral" rating and set a $54.00 target price on the stock. in a research note on Thursday, September 10th. 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 report on Tuesday, September 15th. TD Cowen upped 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. Finally, Citigroup upped their price target on shares of Dynatrace from $65.00 to $75.00 and gave the stock a "buy" rating in a research report on Tuesday, October 27th. Twenty-four analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $63.97.

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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