Zacks Research Downgrades Dynatrace (NYSE:DT) to Hold

Key Points

• Zacks Research downgraded Dynatrace from “strong buy” to “hold,” though the broader analyst consensus remains “moderate buy” with a $53.77 target price.
• Dynatrace reported quarterly revenue of $554.55 million and earnings of $0.48 per share, beating estimates while revenue increased 16.3% year over year.
• Shares opened at $49.52, near their 52-week high of $53.28; institutional investors own 94.28% of the company’s stock.

Dynatrace (NYSE:DT - Get Free Report) was downgraded by equities research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research report issued on Tuesday,Zacks.com reports.

DT has been the topic of a number of other research reports. Rothschild & Co Redburn started coverage on Dynatrace in a research report on Thursday, April 23rd. They issued a "neutral" rating and a $40.00 target price on the stock. DA Davidson raised their price target on Dynatrace from $60.00 to $65.00 and gave the company a "buy" rating in a research note on Thursday, August 6th. TD Cowen boosted their price target on Dynatrace from $45.00 to $50.00 and gave the stock a "buy" rating in a research report on Wednesday, July 22nd. BTIG Research increased their price objective on Dynatrace from $47.00 to $62.00 and gave the company a "buy" rating in a report on Wednesday, August 5th. Finally, JPMorgan Chase & Co. lowered their target price on shares of Dynatrace from $50.00 to $45.00 and set an "overweight" rating on the stock in a report on Thursday, May 14th. Twenty-two equities research analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $53.77.

Dynatrace Stock Performance

Shares of Dynatrace stock opened at $49.52 on Tuesday. The firm has a market cap of $14.31 billion, a PE ratio of 99.04, a P/E/G ratio of 2.97 and a beta of 0.72. Dynatrace has a 52-week low of $31.64 and a 52-week high of $53.28. The business's 50 day simple moving average is $43.84 and its 200 day simple moving average is $39.80.

Dynatrace (NYSE:DT - Get Free Report) last released its earnings results on Wednesday, August 5th. The company reported $0.48 earnings per share for the quarter, beating analysts' consensus estimates of $0.45 by $0.03. Dynatrace had a net margin of 7.22% and a return on equity of 11.07%. The business had revenue of $554.55 million during the quarter, compared to the consensus estimate of $550.01 million. During the same quarter last year, the firm earned $0.42 earnings per share. The firm's revenue for the quarter was up 16.3% compared to the same quarter last year. Dynatrace has set its Q2 2027 guidance at 0.480-0.490 EPS and its FY 2027 guidance at 1.970-1.990 EPS. As a group, equities research analysts predict that Dynatrace will post 1.14 EPS for the current year.

Hedge Funds Weigh In On Dynatrace

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. RHL Group LLC bought a new stake in shares of Dynatrace during the 4th quarter worth about $30,000. CX Institutional lifted its position in Dynatrace by 1,119.0% during the second quarter. CX Institutional now owns 707 shares of the company's stock worth $31,000 after acquiring an additional 649 shares during the last quarter. Brown Lisle Cummings Inc. lifted its position in Dynatrace by 218.8% during the first quarter. Brown Lisle Cummings Inc. now owns 797 shares of the company's stock worth $29,000 after acquiring an additional 547 shares during the last quarter. Larson Financial Group LLC grew its position in shares of Dynatrace by 168.8% in the fourth quarter. Larson Financial Group LLC now owns 809 shares of the company's stock valued at $35,000 after purchasing an additional 508 shares during the last quarter. Finally, SJS Investment Consulting Inc. lifted its holdings in Dynatrace by 577.2% during the 1st quarter. SJS Investment Consulting Inc. now owns 1,483 shares of the company's stock worth $55,000 after purchasing an additional 1,264 shares during the last quarter. 94.28% of the stock is 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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