Dynatrace Inc. (NYSE: DT) stock jumped 5.45% on Friday to $40.43 against a previous-day closing price of $38.34. With 5.4 million shares changed hands, the volume of the stock remained heavier than its average volume of 3.29 million shares. During the session, the Software – Application company that operates in wider Technology sector, reached to the highest price of $42.15 whereas the lowest price it dropped to was $38.38. The 52-week range on DT shows that it touched its highest point at $80.13 and its lowest point at $29.41 during that stretch. It currently has a 1-year price target of $48.80.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of DT was up-trending over the past week, with a rise of 7.18%, but this was down by -3.78% over a month. Three-month performance surged to 1.05% while six-month performance fell -28.16%. The stock lost -37.41% in the past year, while it has lost -33.01% so far this year. A look at the trailing 12-month EPS for DT yields 0.18 with Next year EPS estimates of 0.99. For the next quarter, that number is 0.18. This implies an EPS growth rate of -31.80% for this year and 28.52% for next year. EPS is expected to grow by 18.30% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 130.90%.
Float and Shares Shorts:
At present, 285.32 million DT shares are outstanding with a float of 195.27 million shares on hand for trading. On Jul 14, 2022, short shares totaled 8.9 million, which was 3.10% higher than short shares on Jun 14, 2022. In addition to Mr. Rick M. McConnell as the firm’s CEO & Director, Mr. Bernd Greifeneder serves as its Founder, Sr. VP & CTO.
Through their ownership of 96.28% of DT’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 33.44% of DT, in contrast to 30.62% held by mutual funds. Shares owned by individuals account for 29.25%. As the largest shareholder in DT with 6.33% of the stake, The Vanguard Group, Inc. holds 18,164,098 shares worth 18,164,098. A second-largest stockholder of DT, Fidelity Management & Research Co, holds 12,022,313 shares, controlling over 4.19% of the firm’s shares. Brown Advisory LLC is the third largest shareholder in DT, holding 11,286,190 shares or 3.94% stake. With a 2.06% stake in DT, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 5,904,692 shares are owned by the mutual fund manager. The Fidelity Advisor Series I -Growth, which owns about 1.85% of DT stock, is the second-largest Mutual Fund holder. It holds 5,304,100 shares valued at 209.19 million. Vanguard Small Cap Index Fund holds 1.76% of the stake in DT, owning 5,060,008 shares worth 199.57 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for DT since 19 analysts follow the stock currently. There are 13 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 4 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With DT analysts setting a high price target of $62.00 and a low target of $35.00, the average target price over the next 12 months is $49.13. Based on these targets, DT could surge 53.35% to reach the target high and fall by -13.43% to reach the target low. Reaching the average price target will result in a growth of 21.52% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. DT will report FY 2023 earnings on 05/17/2023. Analysts have provided yearly estimates in a range of $0.82 being high and $0.70 being low. For DT, this leads to a yearly average estimate of $0.75. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Dynatrace Inc. surprised analysts by $0.01 when it reported $0.18 EPS against a consensus estimate of $0.17. The surprise factor in the prior quarter was $0.02. Based on analyst estimates, the high estimate for the next quarter is $0.18 and the low estimate is $0.16. The average estimate for the next quarter is thus $0.17.
Summary of Insider Activity:
Insiders traded DT stock several times over the past three months with 11 Buys and 8 Sells. In these transactions, 467,054 shares were bought while 54,362 shares were sold. The number of buy transactions has increased to 29 while that of sell transactions has risen to 59 over the past year. The total number of shares bought during that period was 821,766 while 613,744 shares were sold.