TD Cowen Issues Pessimistic Forecast for Dynatrace (NYSE:DT) Stock Price

Key Points

• TD Cowen cut its price target for Dynatrace from $60 to $50 while maintaining a "buy" rating, and several other brokers trimmed targets leaving a MarketBeat consensus of "Moderate Buy" with a $53.28 average price target.
• Dynatrace beat Q results (EPS $0.44 vs $0.41 expected; revenue $515.5M vs $506.3M), with revenue up 18.2% year‑over‑year and FY2026 EPS guidance set at $1.67–$1.69.
• The board approved a $1.0 billion share repurchase program (up to 9.8% of shares), and insiders plus institutional investors have recently increased holdings, with institutions owning about 94% of the stock.

Dynatrace (NYSE:DT - Get Free Report) had its price objective dropped by analysts at TD Cowen from $60.00 to $50.00 in a report released on Wednesday,Benzinga reports. The firm currently has a "buy" rating on the stock. TD Cowen's price target would indicate a potential upside of 45.79% from the company's previous close.

A number of other brokerages have also commented on DT. UBS Group set a $64.00 price objective on shares of Dynatrace in a research report on Thursday, March 12th. Robert W. Baird set a $47.00 price target on shares of Dynatrace in a research report on Tuesday, February 10th. BMO Capital Markets decreased their price objective on shares of Dynatrace from $56.00 to $45.00 and set an "outperform" rating on the stock in a report on Monday, February 9th. Jefferies Financial Group decreased their price target on shares of Dynatrace from $65.00 to $55.00 and set a "buy" rating on the stock in a research note on Monday, January 5th. Finally, Citigroup decreased their price target on shares of Dynatrace from $64.00 to $60.00 and set a "buy" rating on the stock in a research note on Friday, January 16th. Nineteen investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $53.28.

Dynatrace Stock Performance

Shares of DT stock traded up $1.03 during mid-day trading on Wednesday, reaching $34.30. The company's stock had a trading volume of 983,952 shares, compared to its average volume of 6,757,919. The company has a market cap of $10.23 billion, a P/E ratio of 56.22, a PEG ratio of 2.22 and a beta of 0.79. The firm's 50-day moving average is $36.70 and its two-hundred day moving average is $42.10. Dynatrace has a 1-year low of $31.64 and a 1-year high of $57.55.

Dynatrace (NYSE:DT - Get Free Report) last announced its earnings results on Monday, February 9th. The company reported $0.44 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.41 by $0.03. The business had revenue of $515.47 million during the quarter, compared to analysts' expectations of $506.31 million. Dynatrace had a net margin of 9.55% and a return on equity of 9.75%. The firm's revenue for the quarter was up 18.2% on a year-over-year basis. During the same quarter last year, the company posted $0.37 EPS. Dynatrace has set its FY 2026 guidance at 1.670-1.690 EPS and its Q4 2026 guidance at 0.380-0.390 EPS. Sell-side analysts anticipate that Dynatrace will post 0.68 EPS for the current year.

Dynatrace announced that its Board of Directors has approved a stock repurchase program on Monday, February 9th that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the company to buy up to 9.8% of its shares through open market purchases. Shares buyback programs are often an indication that the company's leadership believes its stock is undervalued.

Insider Transactions at Dynatrace

In other Dynatrace news, EVP Stephen A. Mcmahon purchased 3,000 shares of Dynatrace stock in a transaction that occurred on Tuesday, March 3rd. The stock was acquired at an average price of $35.75 per share, with a total value of $107,250.00. Following the transaction, the executive vice president owned 3,454 shares in the company, valued at $123,480.50. This trade represents a 660.79% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 0.57% of the company's stock.

Hedge Funds Weigh In On Dynatrace

Several large investors have recently bought and sold shares of the stock. Allspring Global Investments Holdings LLC raised its stake in Dynatrace by 5.4% in the 3rd quarter. Allspring Global Investments Holdings LLC now owns 1,077,181 shares of the company's stock valued at $52,039,000 after acquiring an additional 55,040 shares during the period. Congress Asset Management Co. raised its stake in Dynatrace by 6.8% in the 3rd quarter. Congress Asset Management Co. now owns 3,331,422 shares of the company's stock valued at $161,407,000 after acquiring an additional 212,607 shares during the period. Penserra Capital Management LLC raised its stake in Dynatrace by 22.0% in the 3rd quarter. Penserra Capital Management LLC now owns 222,505 shares of the company's stock valued at $10,780,000 after acquiring an additional 40,136 shares during the period. Vontobel Holding Ltd. grew its holdings in Dynatrace by 790.5% during the 3rd quarter. Vontobel Holding Ltd. now owns 48,702 shares of the company's stock valued at $2,360,000 after buying an additional 43,233 shares in the last quarter. Finally, Stephens Investment Management Group LLC grew its holdings in Dynatrace by 63.1% during the 3rd quarter. Stephens Investment Management Group LLC now owns 1,040,475 shares of the company's stock valued at $50,411,000 after buying an additional 402,585 shares in the last quarter. 94.28% of the stock is currently owned by institutional investors.

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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