Dynatrace Shares Gap Down - What's Next?

Dynatrace, Inc. (NYSE:DT) saw its shares drop before the market opened on Thursday. The stock was previously closed at $56.49 but opened lower at $52.01. It was last traded at $54.13 with a trading volume of 1,038,236 shares.

Analyst Predictions for Future Growth

Dynatrace has been featured in several recent research reports. BTIG Research increased their price target from $57.00 to $63.00 and assigned a "buy" rating on October 23rd. In addition, Guggenheim raised their target from $55.00 to $64.00, also giving it a "buy" rating on September 27th. Barclays improved Dynatrace’s rating from "equal weight" to "overweight," raising their price target to $64.00 in a note on October 7th. Furthermore, Wedbush initiated coverage on Dynatrace with an "outperform" rating and a price target of $67.00 on October 17th. Finally, Rosenblatt Securities reaffirmed a "buy" rating with a target price of $65.00. Currently, five investment analysts have rated the stock as a hold, while 19 have assigned a buy rating, resulting in a consensus rating of "Moderate Buy" and an average price target of $60.46.

Dynatrace Stock Performance Overview

The stock has a moving average of $52.77 over the past 50 days and $48.29 over the last 200 days. It boasts a market capitalization of $16.17 billion, with a price-to-earnings ratio of 108.64 and a PEG ratio of 8.02, alongside a beta of 1.06.

Dynatrace released its quarterly earnings data on August 7th, reporting an earnings per share (EPS) of $0.33, which surpassed the estimated $0.29 by $0.04. The company generated $399.20 million in revenue during this quarter, exceeding the consensus estimate of $392.22 million. The revenue reflected a year-over-year increase of 19.9%, compared to the prior year’s same quarter. Analysts are projecting that Dynatrace, Inc. will achieve an EPS of $0.71 for the current year.

Recent Insider Transactions

In other developments, CEO Rick M. McConnell sold 50,000 shares of the company on September 16th at an average price of $51.50, totaling $2,575,000. Following this sale, he retains 650,587 shares valued at approximately $33.5 million. Similarly, Director Stephen J. Lifshatz sold 5,000 shares on October 11th at an average price of $55.00, equating to $275,000. After the sale, he owns 41,471 shares worth about $2.28 million. In the last quarter, insiders sold a total of 66,022 shares, valued at $3,397,904. Company insiders currently hold 0.59% of the firm's stock.

Institutional Investor Activity

Recently, several institutional investors have made significant moves regarding Dynatrace. Eminence Capital LP acquired a stake valued at around $158.37 million in the second quarter. In the first quarter, Jericho Capital Asset Management L.P. purchased $133.70 million in shares. Assenagon Asset Management S.A. drastically increased its holdings by 1,146.0% in the second quarter, now owning 2,208,137 shares worth $98.79 million. Vanguard Group Inc. also raised its position by 6.4% during the first quarter, owning 27,945,251 shares valued at $1.29 billion. Lastly, Marshall Wace LLP increased its stake by 285.7% during the second quarter, owning 1,389,727 shares valued at $62.18 million. Overall, institutional investors and hedge funds hold 94.28% of Dynatrace's shares.

About Dynatrace, Inc.

Dynatrace, Inc. provides a security platform designed for multicloud environments globally. The company offers a suite of services including application and microservices monitoring, runtime application security, infrastructure monitoring, log management and analytics, digital experience monitoring, digital business analytics, and cloud automation.

Future Considerations

Before deciding to invest in Dynatrace, it is prudent to consider broader market factors and analyst recommendations. Despite the current "Moderate Buy" rating, it appears that some leading analysts are highlighting other stocks as more favorable investments. If you are looking into possible opportunities in the stock market, thorough research is advised.

Dynatrace, Stocks, Earnings