Dynatrace (NYSE:DT) Shares Gap Down - What's Next?

Dynatrace, Inc. (NYSE:DT) shares experienced a significant decline before the market opened on Thursday. The stock had closed at $56.49 and opened at $52.01. As of the latest trade, Dynatrace shares were priced at $54.13, with a trading volume of 1,038,236 shares.

Wall Street Analysts Forecast Growth

Analysts on Wall Street have shown optimism regarding Dynatrace's potential growth. Recently, several research reports highlighted the stock's favorable outlook. BTIG Research raised its price target for Dynatrace from $57.00 to $63.00, assigning it a "buy" rating in a report on October 23rd. Similarly, Guggenheim increased the target from $55.00 to $64.00 in a report on September 27th, also giving the stock a "buy" rating.

Barclays upgraded Dynatrace from an "equal weight" position to "overweight," raising their price target from $52.00 to $64.00 as of October 7th. On October 17th, Wedbush began its coverage of Dynatrace, setting an "outperform" rating with a price target of $67.00. Furthermore, Rosenblatt Securities maintained a "buy" rating with a target price of $65.00. In total, five analysts have rated the stock as a hold, while nineteen have given it a buy rating, resulting in a "Moderate Buy" consensus and an average price target of $60.46 according to MarketBeat.com.

Dynatrace Price Performance

The company's stock performance showcases a 50-day moving average of $52.77 and a 200-day moving average of $48.29. Dynatrace has a market capitalization of $16.17 billion, a price-to-earnings ratio of 108.64, and a PEG ratio of 8.02, indicating its high growth expectations. The stock's beta is 1.06, suggesting a volatility level comparable to the market.

Most recently, Dynatrace announced its quarterly earnings on August 7th, where it reported an earnings per share (EPS) of $0.33, surpassing the anticipated $0.29 by $0.04. The company generated $399.20 million in revenue for the quarter, exceeding the expected $392.22 million. Notably, Dynatrace's revenue was up by 19.9% year-over-year, compared to $0.16 EPS from the same quarter the previous year. Analysts project that Dynatrace will report earnings of $0.71 per share for the current fiscal year.

Insider Activity

Recent sales by company insiders may raise questions among investors. On September 16th, CEO Rick M. McConnell sold 50,000 shares at an average price of $51.50, totaling $2,575,000. Despite this sale, he continues to hold 650,587 shares valued at approximately $33.5 million, reflecting no change in his ownership percentage. Additionally, Director Stephen J. Lifshatz sold 5,000 shares on October 11th for $275,000, which brings his holdings down to approximately $2.28 million. Overall, insiders sold a total of 66,022 shares valued at about $3.4 million last quarter, owning 0.59% of the company's stock.

Institutional Investors Weigh In On Dynatrace

Several institutional investors have recently adjusted their investments in Dynatrace. Eminence Capital LP acquired a new stake worth approximately $158.4 million in the second quarter, while Jericho Capital Asset Management L.P. purchased shares valued at $133.7 million in the first quarter. Assenagon Asset Management S.A. grew its holdings by over 1,146% during the second quarter, acquiring over 2 million shares valued at nearly $98.8 million. Vanguard Group Inc. also increased its stake by 6.4% in the first quarter, now holding shares valued at about $1.3 billion. Marshall Wace LLP raised its stake by 285.7% amounting to approximately $62.2 million over the last quarter. Currently, institutional investors and hedge funds control an impressive 94.28% of Dynatrace's stock.

About Dynatrace

Dynatrace, Inc. specializes in providing security solutions for multicloud environments globally. Their platform, Dynatrace, offers various services such as application and microservices monitoring, runtime application security, infrastructure monitoring, log management, digital experience monitoring, business analytics, and cloud automation.

Dynatrace, Stocks, Investing