Investment analysts at Rosenblatt Securities have revised their price target for Dynatrace (NYSE:DT) from $67.00 to $60.00, while maintaining a “buy” rating on the stock. This adjustment, detailed in a research note issued on November 6, 2023, suggests a potential upside of approximately 57.56% based on Dynatrace’s previous closing price.
Analyst Ratings and Market Sentiment
Dynatrace has been the focus of multiple research reports recently. Scotiabank also lowered its price target for the company from $67.00 to $60.00, maintaining an “outperform” rating. Similarly, KeyCorp adjusted its price target down from $69.00 to $60.00, endorsing an “overweight” rating for the stock. Other firms, such as Weiss Ratings, reaffirmed a “hold” rating, while Wall Street Zen downgraded Dynatrace from “buy” to “hold.” Additionally, Cantor Fitzgerald reduced its price target from $57.00 to $51.00, assigning a “neutral” rating. In total, eighteen analysts have rated the stock as a Buy, while six have issued a Hold rating, leading to a consensus rating of “Moderate Buy” with an average target price of $59.41, according to data from MarketBeat.com.
On November 5, 2023, Dynatrace reported quarterly earnings of $0.44 per share, surpassing analyst expectations of $0.41 by $0.03. The company also achieved a net margin of 27.33% and a return on equity of 9.24%, with quarterly revenue reaching $493.85 million, exceeding forecasts of $487.33 million. This marked an 18.1% increase in revenue compared to the same quarter last year, indicating robust performance in a competitive market.
Stock Performance and Insider Activity
On the day the report was issued, shares of Dynatrace opened at $38.08. The firm has a market capitalization of $11.48 billion, a price-to-earnings ratio of 22.80, and a price-to-earnings-growth ratio of 2.99. The company has seen a 52-week range with a low of $37.43 and a high of $63.00.
In related news, Daniel S. Yates, the Chief Accounting Officer, sold 2,000 shares on November 17, 2023, at an average price of $46.69, totaling $93,380. Following this transaction, Yates holds 23,380 shares valued at around $1,091,612.20, reflecting a 7.88% reduction in his position. Additionally, Rick M. McConnell, the CEO, sold 30,000 shares on November 11, 2023, for $1,398,300, which resulted in a 21.72% decrease in his ownership. These transactions were disclosed through filings with the Securities and Exchange Commission (SEC).
In the last 90 days, insiders have sold a total of 39,843 shares valued at $1,846,424, and currently, insiders hold 0.57% of the stock.
Institutional Investors and Market Outlook
Institutional investors have been actively adjusting their stakes in Dynatrace. Wellington Management Group LLP increased its holdings by an impressive 719.3% in the third quarter, acquiring an additional 6,444,262 shares, bringing its total to 7,340,127 shares valued at $355,629,000. Other significant transactions included Scge Management L.P., which purchased a new stake valued at approximately $155,858,000, and Pictet Asset Management Holding SA, which boosted its holdings by 16.5% in the fourth quarter.
Overall, institutional investors and hedge funds collectively own 94.28% of Dynatrace’s stock, indicating strong institutional confidence in the company’s future performance.
As Dynatrace continues to innovate in the software intelligence sector, its robust analytical capabilities and strategic growth initiatives will be critical as it navigates market fluctuations and investor expectations.
