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

Dynatrace, Inc. (NYSE:DT) shares experienced a significant drop before the market opened on Thursday. The stock, which closed at $56.49, opened at $52.01. As of the latest trading session, Dynatrace shares stood at $54.13, with a total volume of 1,038,236 shares traded.

Wall Street Analysts Forecast Growth

Recent research reports have shown a positive outlook for Dynatrace. Notably, BTIG Research has raised its price target from $57.00 to $63.00 and maintained a "buy" rating on October 23rd. Similarly, Guggenheim increased their target price from $55.00 to $64.00 and provided a "buy" rating on September 27th. Barclays upgraded Dynatrace from an "equal weight" to an "overweight" rating on October 7th, boosting their price target from $52.00 to $64.00. Additionally, Wedbush initiated coverage with an "outperform" rating and set a price objective of $67.00. On the other hand, Rosenblatt Securities reaffirmed a "buy" rating and issued a target price of $65.00. Currently, five analysts rate the stock as a hold, while nineteen recommend it as a buy. MarketBeat.com data indicates a consensus rating of "Moderate Buy" and an average price target of $60.46.

Dynatrace Price Performance

The company's stock has a 50-day moving average of $52.77 and a 200-day moving average of $48.29. With a market capitalization of $16.17 billion, it boasts a price-to-earnings ratio of 108.64 and a PEG ratio of 8.02, alongside a beta of 1.06.

Dynatrace's most recent quarterly earnings report was released on August 7th, revealing an earnings per share (EPS) of $0.33, surpassing the consensus estimate of $0.29 by $0.04. The firm reported revenues of $399.20 million, exceeding expectations of $392.22 million, marking a 19.9% increase compared to the same quarter last year. For the current fiscal year, analysts project an EPS of 0.71 for Dynatrace.

Insider Activity

In other developments within the company, CEO Rick M. McConnell sold 50,000 shares on September 16th at an average price of $51.50, totaling $2,575,000. Following the sale, he retains 650,587 shares valued at approximately $33,505,230. Director Stephen J. Lifshatz also sold 5,000 shares at an average price of $55.00, amounting to $275,000, leaving him with 41,471 shares valued at about $2,280,905. Notably, insiders sold a total of 66,022 shares in the last quarter, worth $3,397,904, which constitutes about 0.59% ownership of the company by insiders.

Institutional Investors Weigh In On Dynatrace

A number of institutional investors have taken new positions or adjusted their holdings in Dynatrace recently. Eminence Capital LP acquired a new stake worth approximately $158.37 million in the second quarter. Jericho Capital Asset Management L.P. also entered the fray with a new stake of $133.70 million in the first quarter. Assenagon Asset Management S.A. significantly increased its stake by 1,146.0% during the second quarter, now owning 2,208,137 shares valued at $98.79 million after purchasing an additional 2,030,915 shares. Vanguard Group Inc. raised its holdings by 6.4% in the first quarter, now owning over 27.94 million shares worth $1.30 billion. Marshall Wace LLP expanded its position by 285.7% in the second quarter, increasing its ownership to 1,389,727 shares valued at $62.18 million. Overall, institutional and hedge fund investors account for 94.28% of Dynatrace's stock holdings.

Dynatrace Company Profile

Dynatrace, Inc. is known for providing a security platform tailored for multicloud environments across various regions including North America, Europe, the Middle East, Africa, Asia Pacific, and Latin America. The company offers a comprehensive security platform that includes application and microservices monitoring, runtime application security, infrastructure monitoring, log management and analytics, digital experience monitoring, digital business analytics, as well as cloud automation.

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