Morgan Stanley Lowers Dynatrace (NYSE:DT) Price Target to $43.00

Dynatrace (NYSE:DT) had its target price decreased by analysts at Morgan Stanley from $57.00 to $43.00 in a research report issued on Tuesday, Marketbeat reports. The firm currently has an “equal weight” rating on the stock. Morgan Stanley’s target price indicates a potential upside of 15.76% from the stock’s previous close.

A number of other analysts have also recently weighed in on DT. Canaccord Genuity Group set a $50.00 price target on Dynatrace in a research report on Tuesday. Keefe, Bruyette & Woods upgraded Dynatrace to a “buy” rating in a report on Monday. Guggenheim reiterated a “buy” rating and set a $68.00 price target on shares of Dynatrace in a report on Tuesday. Weiss Ratings reissued a “hold (c)” rating on shares of Dynatrace in a research report on Monday, December 29th. Finally, BTIG Research lowered their target price on shares of Dynatrace from $67.00 to $53.00 and set a “buy” rating on the stock in a research note on Monday. Twenty investment analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company’s stock. Based on data from MarketBeat, Dynatrace currently has a consensus rating of “Moderate Buy” and an average target price of $52.52.

Dynatrace Stock Performance

Shares of DT opened at $37.15 on Tuesday. The firm has a market cap of $11.20 billion, a PE ratio of 60.89, a PEG ratio of 2.90 and a beta of 0.84. The firm’s 50 day moving average price is $41.47 and its 200 day moving average price is $46.00. Dynatrace has a twelve month low of $32.83 and a twelve month high of $63.00.

Dynatrace (NYSE:DT) last posted its earnings results on Monday, February 9th. The company reported $0.44 EPS for the quarter, topping the consensus estimate of $0.41 by $0.03. The company had revenue of $515.47 million during the quarter, compared to the consensus estimate of $506.31 million. Dynatrace had a net margin of 9.55% and a return on equity of 9.75%. The company’s revenue for the quarter was up 18.2% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.37 earnings per share. 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, sell-side analysts anticipate that Dynatrace will post 0.68 earnings per share for the current fiscal year.

Dynatrace declared that its board has approved a stock repurchase plan on Monday, February 9th that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the company to buy up to 9.8% of its shares through open market purchases. Shares repurchase plans are often an indication that the company’s leadership believes its stock is undervalued.

Insider Activity at Dynatrace

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

Hedge Funds Weigh In On Dynatrace

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Congress Asset Management Co. lifted its stake in Dynatrace by 6.8% in the third quarter. Congress Asset Management Co. now owns 3,331,422 shares of the company’s stock valued at $161,407,000 after buying an additional 212,607 shares during the period. Allspring Global Investments Holdings LLC grew its position in shares of Dynatrace by 5.4% during the 3rd quarter. Allspring Global Investments Holdings LLC now owns 1,077,181 shares of the company’s stock worth $52,039,000 after buying an additional 55,040 shares during the period. Vontobel Holding Ltd. increased its stake in shares of 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 acquiring an additional 43,233 shares during the last quarter. Penserra Capital Management LLC raised its position in shares of 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 acquiring an additional 40,136 shares during the period. Finally, Stephens Investment Management Group LLC boosted its stake 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 acquiring an additional 402,585 shares during the last quarter. 94.28% of the stock is owned by institutional investors.

Trending Headlines about Dynatrace

Here are the key news stories impacting Dynatrace this week:

• Positive Sentiment: Q3 beat-and-raise: Dynatrace reported revenue of $515.5M (+18% Y/Y), non-GAAP EPS of $0.44 (vs. $0.41 est.) and raised full‑year targets — evidence of accelerating recurring revenue and stronger-than-expected demand. Dynatrace’s Earnings Win Makes One Thing Clear: This Software Is Essential
• Positive Sentiment: $1.0 billion buyback: The board authorized up to ~$1B (≈9.8% of shares), signaling management confidence, reducing share count, and providing tangible capital return that supports EPS and a near‑term price floor. Share Repurchase Program Announced by Dynatrace (NYSE:DT) Board of Directors
• Positive Sentiment: AI & product expansion: Management pushed agentic AI/observability messaging (Dynatrace Intelligence) and recent DevCycle integration, positioning the platform as essential for AI reliability and creating new monetization paths. This supports upside to ARR and customer expansion. Dynatrace (DT) Navigates Market Skepticism With Product Expansion
• Neutral Sentiment: Strong customer economics: ARR ~ $1.97B (≈20% Y/Y), NRR ~111% and high gross retention — metrics that support long‑term recurring revenue but may already be partially priced in. Dynatrace: Growth Should Start To Accelerate
• Neutral Sentiment: Earnings call & transcript detail execution and product road map; useful for confirming management commentary on ARR, margins and buyback pacing. Dynatrace Inc (DT) Q3 2026 Earnings Call Highlights: Strong Growth and Strategic Advancements
• Neutral Sentiment: Bullish research remains: Guggenheim reaffirmed a buy and KeyCorp raised its PT — these keep upside narratives alive but the analyst views are mixed. Dynatrace buy rating reaffirmation (Guggenheim)
• Negative Sentiment: Analyst cuts and valuation pressure: Multiple firms cut price targets (e.g., Morgan Stanley, Wells Fargo, Scotiabank, BTIG) citing compressed multiples in the sector — a headwind that can cap near‑term upside despite good fundamentals. DT Price Target Lowered by Morgan Stanley
• Neutral Sentiment: Valuation vs. peers: Some commentary argues DT is undervalued relative to peers (Datadog) given ARR growth and free cash flow, but market still prices the stock more conservatively — a potential medium‑term catalyst if multiples re‑rate. Dynatrace Is Still Growing Quickly Despite A Conservative Valuation

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.