Scotiabank Has Lowered Expectations for Dynatrace (NYSE:DT) Stock Price

Dynatrace (NYSE:DT) had its target price reduced by research analysts at Scotiabank from $60.00 to $47.00 in a note issued to investors on Tuesday, Marketbeat reports. The firm currently has a “sector outperform” rating on the stock. Scotiabank’s price objective would suggest a potential upside of 26.53% from the company’s previous close.

Several other analysts have also weighed in on the company. Wells Fargo & Company reduced their price objective on Dynatrace from $65.00 to $50.00 and set an “overweight” rating on the stock in a research note on Tuesday. Citigroup dropped their target price on shares of Dynatrace from $64.00 to $60.00 and set a “buy” rating for the company in a report on Friday, January 16th. Royal Bank Of Canada reaffirmed an “outperform” rating on shares of Dynatrace in a report on Monday. KeyCorp upped their price objective on shares of Dynatrace from $50.00 to $52.00 and gave the stock an “overweight” rating in a research report on Tuesday. Finally, Barclays dropped their price objective on shares of Dynatrace from $57.00 to $47.00 and set an “overweight” rating for the company in a research note on Tuesday. Twenty research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $52.52.

Dynatrace Trading Up 0.9%

NYSE DT opened at $37.15 on Tuesday. The firm has a market capitalization of $11.20 billion, a price-to-earnings ratio of 60.89, a P/E/G ratio of 2.90 and a beta of 0.84. The firm’s 50 day simple moving average is $41.47 and its 200 day simple moving average is $46.00. 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 EPS for the quarter, beating the consensus estimate of $0.41 by $0.03. The business 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 was up 18.2% on a year-over-year basis. During the same period in the previous year, the business earned $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, equities research analysts forecast that Dynatrace will post 0.68 earnings per share for the current year.

Dynatrace announced that its Board of Directors has authorized a stock repurchase plan on Monday, February 9th that authorizes the company to repurchase $1.00 billion in shares. This repurchase authorization authorizes the company to buy up to 9.8% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company’s management believes its stock is undervalued.

Insider Transactions at Dynatrace

In other Dynatrace news, CAO Daniel S. Yates sold 2,000 shares of the 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 sale, the chief accounting officer owned 23,380 shares of the company’s stock, valued at approximately $1,091,612.20. This represents a 7.88% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP Dan Zugelder sold 7,505 shares of the firm’s 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 transaction, the executive vice president owned 8,925 shares of the company’s stock, valued at approximately $404,034.75. The trade was a 45.68% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 9,843 shares of company stock valued at $448,124 over the last 90 days. 0.57% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Dynatrace

Several hedge funds and other institutional investors have recently bought and sold shares of DT. NewEdge Advisors LLC lifted its stake in shares of Dynatrace by 25.3% in the 1st quarter. NewEdge Advisors LLC now owns 9,135 shares of the company’s stock valued at $431,000 after purchasing an additional 1,846 shares during the period. Jones Financial Companies Lllp increased its holdings in Dynatrace by 19.2% in the first quarter. Jones Financial Companies Lllp now owns 2,161 shares of the company’s stock worth $102,000 after purchasing an additional 348 shares in the last quarter. Vontobel Holding Ltd. lifted its stake in Dynatrace by 8.0% in the second quarter. Vontobel Holding Ltd. now owns 5,469 shares of the company’s stock valued at $302,000 after buying an additional 403 shares during the period. Blue Trust Inc. boosted its holdings in shares of Dynatrace by 6.2% during the 2nd quarter. Blue Trust Inc. now owns 8,077 shares of the company’s stock worth $446,000 after buying an additional 468 shares in the last quarter. Finally, Eastern Bank acquired a new stake in shares of Dynatrace during the 2nd quarter worth approximately $35,000. Institutional investors and hedge funds own 94.28% of the company’s stock.

More Dynatrace News

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.