Dynatrace (NYSE:DT) Issues Q1 2027 Earnings Guidance

Dynatrace (NYSE:DT) issued an update on its first quarter 2027 earnings guidance on Wednesday morning. The company provided earnings per share guidance of 0.440-0.450 for the period, compared to the consensus earnings per share estimate of 0.410. The company issued revenue guidance of $547.0 million-$551.0 million, compared to the consensus revenue estimate of $547.9 million. Dynatrace also updated its FY 2027 guidance to 1.930-1.950 EPS.

Dynatrace Stock Down 2.7%

NYSE DT opened at $39.14 on Wednesday. The firm has a 50-day moving average price of $37.14 and a 200 day moving average price of $40.59. Dynatrace has a 52-week low of $31.64 and a 52-week high of $57.55. The stock has a market capitalization of $11.67 billion, a P/E ratio of 64.17, a P/E/G ratio of 2.46 and a beta of 0.70.

Dynatrace (NYSE:DT) last issued its earnings results on Monday, February 9th. The company reported $0.44 earnings per share for the quarter, topping the consensus estimate of $0.41 by $0.03. The company had revenue of $515.47 million for the quarter, compared to analyst estimates of $506.31 million. Dynatrace had a net margin of 9.55% and a return on equity of 9.75%. The firm’s revenue for the quarter was up 18.2% compared to the same quarter last year. During the same period in the prior year, the business posted $0.37 earnings per share. On average, equities research analysts expect that Dynatrace will post 0.88 earnings per share for the current fiscal year.

Dynatrace declared that its board has authorized a share buyback program on Monday, February 9th that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the company to buy up to 9.8% of its shares through open market purchases. Shares buyback programs are typically an indication that the company’s leadership believes its stock is undervalued.

Analyst Ratings Changes

A number of equities analysts have recently commented on DT shares. Morgan Stanley cut their target price on shares of Dynatrace from $57.00 to $43.00 and set an “equal weight” rating on the stock in a research note on Tuesday, February 10th. Scotiabank decreased their price target on shares of Dynatrace from $60.00 to $47.00 and set a “sector outperform” rating for the company in a report on Tuesday, February 10th. Rothschild & Co Redburn assumed coverage on shares of Dynatrace in a research report on Thursday, April 23rd. They set a “neutral” rating and a $40.00 price target on the stock. Citigroup cut their target price on shares of Dynatrace from $64.00 to $60.00 and set a “buy” rating for the company in a research note on Friday, January 16th. Finally, UBS Group set a $64.00 price target on shares of Dynatrace in a report on Thursday, March 12th. One analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat.com, Dynatrace has a consensus rating of “Moderate Buy” and a consensus target price of $51.32.

Insider Activity at Dynatrace

In other Dynatrace news, EVP Stephen A. Mcmahon purchased 3,000 shares of the stock in a transaction dated Tuesday, March 3rd. The stock was bought at an average price of $35.75 per share, for a total transaction of $107,250.00. Following the transaction, the executive vice president directly owned 3,454 shares in the company, valued at $123,480.50. This represents a 660.79% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available at the SEC website. 0.57% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Dynatrace

Several institutional investors and hedge funds have recently modified their holdings of the business. Cim LLC lifted its stake in Dynatrace by 1.0% during the 3rd quarter. Cim LLC now owns 22,184 shares of the company’s stock valued at $1,075,000 after acquiring an additional 228 shares in the last quarter. Orion Porfolio Solutions LLC raised its stake in shares of Dynatrace by 1.4% during the 3rd quarter. Orion Porfolio Solutions LLC now owns 16,983 shares of the company’s stock worth $823,000 after purchasing an additional 231 shares during the period. Northwestern Mutual Wealth Management Co. increased its holdings in Dynatrace by 21.3% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 1,548 shares of the company’s stock worth $85,000 after acquiring an additional 272 shares during the last quarter. Principal Securities Inc. increased its holdings in Dynatrace by 1.3% in the 4th quarter. Principal Securities Inc. now owns 24,879 shares of the company’s stock worth $1,078,000 after acquiring an additional 316 shares during the last quarter. Finally, Jones Financial Companies Lllp increased its holdings in Dynatrace by 19.2% in the 1st quarter. Jones Financial Companies Lllp now owns 2,161 shares of the company’s stock worth $102,000 after acquiring an additional 348 shares during the last quarter. 94.28% of the stock is currently owned by institutional investors and hedge funds.

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.