Dynatrace (NYSE:DT) Price Target Cut to $43.00 by Analysts at Morgan Stanley

Dynatrace (NYSE:DT) had its target price trimmed by Morgan Stanley from $57.00 to $43.00 in a research note released on Tuesday morning, MarketBeat reports. The firm currently has an equal weight rating on the stock.

Other research analysts have also recently issued reports about the company. TD Cowen decreased their price objective on Dynatrace from $65.00 to $55.00 and set a “buy” rating on the stock in a report on Wednesday, January 21st. Stifel Nicolaus set a $51.00 target price on Dynatrace in a research note on Monday. Scotiabank reduced their target price on Dynatrace from $60.00 to $47.00 and set a “sector outperform” rating on the stock in a research report on Tuesday. Citigroup lowered their price target on Dynatrace from $64.00 to $60.00 and set a “buy” rating for the company in a report on Friday, January 16th. Finally, Wells Fargo & Company reduced their price objective on shares of Dynatrace from $65.00 to $50.00 and set an “overweight” rating on the stock in a report on Tuesday. Twenty research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $53.00.

Dynatrace Price Performance

NYSE DT opened at $36.77 on Tuesday. The stock’s 50 day simple moving average is $41.62 and its 200-day simple moving average is $46.06. The company has a market cap of $11.09 billion, a PE ratio of 60.28, a price-to-earnings-growth ratio of 2.85 and a beta of 0.84. Dynatrace has a 1-year low of $32.83 and a 1-year high of $63.00.

Dynatrace (NYSE:DT) last announced its quarterly earnings data on Monday, February 9th. The company reported $0.44 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.41 by $0.03. Dynatrace had a net margin of 9.55% and a return on equity of 9.75%. The company had revenue of $515.47 million during the quarter, compared to analysts’ expectations of $506.31 million. During the same quarter in the prior year, the company earned $0.37 EPS. Dynatrace’s revenue was up 18.2% compared to the same quarter last year. Dynatrace has set its FY 2026 guidance at 1.670-1.690 EPS and its Q4 2026 guidance at 0.380-0.390 EPS. On average, equities research analysts anticipate that Dynatrace will post 0.68 EPS for the current fiscal year.

Dynatrace declared that its Board of Directors has authorized a share repurchase plan on Monday, February 9th that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the company to buy up to 9.8% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s board believes its stock is undervalued.

Insider Activity at Dynatrace

In other Dynatrace news, EVP Dan Zugelder sold 7,505 shares of the stock in a transaction that occurred on Wednesday, December 10th. The shares were sold at an average price of $45.27, for a total transaction of $339,751.35. Following the sale, the executive vice president directly owned 8,925 shares in the company, valued at $404,034.75. This represents a 45.68% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CAO Daniel S. Yates sold 2,000 shares of the firm’s stock in a transaction that occurred on Monday, November 17th. The shares were sold at an average price of $46.69, for a total transaction of $93,380.00. Following the completion of the transaction, the chief accounting officer directly owned 23,380 shares of the company’s stock, valued at $1,091,612.20. This represents a 7.88% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 9,843 shares of company stock worth $448,124. 0.57% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of DT. Congress Asset Management Co. grew its stake in shares of Dynatrace by 6.8% in the 3rd quarter. Congress Asset Management Co. now owns 3,331,422 shares of the company’s stock valued at $161,407,000 after purchasing an additional 212,607 shares during the last quarter. Allspring Global Investments Holdings LLC lifted its holdings in shares of Dynatrace by 5.4% during the third quarter. Allspring Global Investments Holdings LLC now owns 1,077,181 shares of the company’s stock worth $52,039,000 after purchasing an additional 55,040 shares during the period. Vontobel Holding Ltd. grew its position in Dynatrace by 790.5% in the 3rd quarter. Vontobel Holding Ltd. now owns 48,702 shares of the company’s stock valued at $2,360,000 after buying an additional 43,233 shares during the last quarter. Penserra Capital Management LLC increased its stake in Dynatrace by 22.0% in the 3rd quarter. Penserra Capital Management LLC now owns 222,505 shares of the company’s stock valued at $10,780,000 after buying an additional 40,136 shares during the period. Finally, Stephens Investment Management Group LLC raised its position in Dynatrace by 63.1% during the 3rd quarter. Stephens Investment Management Group LLC now owns 1,040,475 shares of the company’s stock worth $50,411,000 after buying an additional 402,585 shares during the last quarter. 94.28% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Dynatrace

Here are the key news stories impacting Dynatrace this week:

• Positive Sentiment: Q3 beat and raised guidance — Dynatrace reported $515.5M revenue and $0.44 EPS (both above estimates), lifted FY‑2026 guidance (EPS and revenue) and showed strong ARR/retention metrics, a clear catalyst for the rally. Dynatrace Reports Third-Quarter Fiscal Year 2026 Financial Results
• Positive Sentiment: $1.0 billion buyback — The Board authorized repurchases (~9.8% of shares outstanding), which reduces float and signals management confidence; that helps support the share price. RTT News – Stock Buybacks
• Positive Sentiment: Strong subscription metrics & product momentum — ARR (~$1.97B), 111% net retention and adoption of Dynatrace Intelligence (agentic AI operations) plus the DevCycle acquisition position the company for continued high‑quality recurring growth. Dynatrace earnings coverage
• Positive Sentiment: Some brokers remain bullish — Guggenheim reaffirmed a buy with a $68 target and KeyCorp raised its target to $52, giving upside scenarios that support investor interest. Guggenheim / TickerReport
• Neutral Sentiment: Analyst commentary & coverage pieces highlight the stock as a growth/value mix for investors, framing Dynatrace as essential infrastructure in cloud/AI environments (useful context but not an immediate price mover). Zacks – 3 Reasons Why Growth Investors Shouldn’t Overlook Dynatrace
• Negative Sentiment: Mixed/softer analyst targets — Several firms trimmed targets (Morgan Stanley to $43, Wells Fargo to $50, Scotiabank to $47; BTIG cut its target as well), reflecting sector valuation compression and capping some upside despite strong fundamentals. The Fly – Analyst Target Changes

About Dynatrace

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.