Dynatrace (NYSE:DT) Stock Price Crosses Below Two Hundred Day Moving Average on Analyst Downgrade

Key Points

• Dynatrace shares fell below their 200-day moving average, trading as low as $43.63, after UBS cut its price target from $80 to $75 while maintaining a Buy rating.
• Analyst sentiment remains positive overall: 24 analysts rate the stock Buy and eight Hold, for a “Moderate Buy” consensus and an average price target of $62.
• The company beat quarterly EPS and revenue estimates and authorized a $1 billion share repurchase, but a reduced profit outlook and delayed enterprise deals have raised concerns about near-term momentum.

Dynatrace, Inc. (NYSE:DT - Get Free Report) shares passed below its 200-day moving average during trading on Thursday after UBS Group lowered their price target on the stock from $80.00 to $75.00. The stock has a 200-day moving average of $44.68 and traded as low as $43.63. UBS Group currently has a buy rating on the stock. Dynatrace shares last traded at $43.7550, with a volume of 8,974,508 shares traded.

A number of other analysts have also recently commented on DT. Jefferies Financial Group reaffirmed a "buy" rating and issued a $75.00 price target on shares of Dynatrace in a research note on Sunday, October 11th. Weiss Ratings raised shares of Dynatrace from a "hold (c-)" rating to a "hold (c)" rating in a research note on Wednesday, September 16th. Canaccord Genuity Group boosted their price objective on shares of Dynatrace from $46.00 to $60.00 and gave the company a "buy" rating in a report on Thursday, August 6th. Citigroup lowered their target price on shares of Dynatrace from $75.00 to $70.00 and set a "buy" rating for the company in a research note on Wednesday. Finally, DA Davidson increased their target price on shares of Dynatrace from $60.00 to $65.00 and gave the stock a "buy" rating in a report on Thursday, August 6th. Twenty-four analysts have rated the stock with a Buy rating and eight have given a Hold rating to the stock. According to MarketBeat.com, Dynatrace currently has an average rating of "Moderate Buy" and an average target price of $62.00.

Insider Buying and Selling

In related news, EVP Bernd Greifeneder sold 50,000 shares of the company'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 completion of the transaction, the executive vice president directly owned 904,846 shares of the company's stock, valued at approximately $51,766,239.66. This represents a 5.24% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.69% of the company's stock.

Key Stories Impacting Dynatrace

Here are the key news stories impacting Dynatrace this week:

• Positive Sentiment: The board authorized a $1 billion share repurchase program, allowing buybacks of up to 6.3% of outstanding shares. Repurchases can signal management sees value in the stock and may support per-share results. Dynatrace buyback announcement
• Positive Sentiment: Dynatrace beat quarterly estimates, reporting EPS of $0.54 versus $0.49 expected and revenue of about $580 million versus roughly $568 million expected. Dynatrace earnings beat and outlook
• Neutral Sentiment: Analysts lowered price targets, but several maintained positive ratings: RBC cut its target to $68 and Citi to $70, while retaining “outperform” and “buy” ratings, respectively. RBC price target change Citi price target change
• Negative Sentiment: The earnings beat was overshadowed by a reduced profit outlook, with acquisition-related impacts weighing on expected profitability and cash flow. Commentary also cited delayed enterprise deals and slower momentum, raising concern about near-term growth; one analyst described the next quarter as a key test. Delayed enterprise deals weigh on outlook Dynatrace Q2 review
• Negative Sentiment: Multiple firms cut their price targets, including Wedbush to $50 and BMO to $60. While many retained favorable ratings, the breadth of revisions reflects lower near-term expectations and adds pressure to sentiment. Wedbush target cut BMO target cut

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the company. Argent Capital Management LLC bought a new stake in shares of Dynatrace in the third quarter valued at approximately $21,868,000. B.A. Schrock Wealth Management Inc. acquired a new stake in Dynatrace during the third quarter worth approximately $1,695,000. Wellington Management Group LLP increased its stake in Dynatrace by 23.5% during the 2nd quarter. Wellington Management Group LLP now owns 11,528,792 shares of the company's stock worth $506,229,000 after acquiring an additional 2,191,497 shares during the period. Hsbc Holdings PLC increased its stake in Dynatrace by 12.0% during the 4th quarter. Hsbc Holdings PLC now owns 243,259 shares of the company's stock worth $10,568,000 after acquiring an additional 26,129 shares during the period. Finally, Boston Trust Walden Corp increased its position in shares of Dynatrace by 31.2% in the third quarter. Boston Trust Walden Corp now owns 1,719,609 shares of the company's stock worth $99,290,000 after purchasing an additional 409,003 shares during the period. 94.28% of the stock is currently owned by institutional investors.

Dynatrace Stock Performance

The firm has a market cap of $12.56 billion, a price-to-earnings ratio of 81.03, a P/E/G ratio of 2.87 and a beta of 0.76. The stock has a 50 day moving average of $57.45 and a 200 day moving average of $44.68. The company has a quick ratio of 1.21, a current ratio of 2.09 and a debt-to-equity ratio of 0.62.

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

Dynatrace announced that its Board of Directors has authorized a share buyback plan on Tuesday, November 3rd that allows the company to buy back $1 billion in outstanding shares. This repurchase authorization allows the company to reacquire up to 6.3% of its stock through open market purchases. Share repurchase plans are generally an indication that the company's management believes its shares are 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.