A History of Outperforming Analyst Forecasts and Beating the Odds: Dynatrace Inc. (DT)

Dynatrace Inc. (NYSE: DT) stock fell -0.43% on Thursday to $48.94 against a previous-day closing price of $49.15. With 2.88 million shares changed hands, the volume of the stock remained heavier than its average volume of 2.58 million shares. During the session, the Software – Application company that operates in wider Technology sector, reached to the highest price of $50.47 whereas the lowest price it dropped to was $48.62. The 52-week range on DT shows that it touched its highest point at $50.49 and its lowest point at $31.54 during that stretch. It currently has a 1-year price target of $51.79. Beta for the stock currently stands at 1.08.

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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 down-trending over the past week, with a drop of -0.49%, but this was up by 17.08% over a month. Three-month performance surged to 13.97% while six-month performance rose 34.71%. The stock gained 29.88% in the past year, while it has gained 27.78% so far this year. A look at the trailing 12-month EPS for DT yields 0.37 with Next year EPS estimates of 1.19. For the next quarter, that number is 0.22. This implies an EPS growth rate of -31.80% for this year and 19.16% for next year. EPS is expected to grow by 11.17% 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, 287.96 million DT shares are outstanding with a float of 193.52 million shares on hand for trading. On May 14, 2023, short shares totaled 10.83 million, which was 3.73% higher than short shares on Apr 13, 2023. In addition to Mr. Rick M. McConnell as the firm’s CEO & Director, Mr. Bernd Greifeneder serves as its Founder, Sr. VP & CTO.

Institutional Ownership:

Through their ownership of 99.83% of DT’s outstanding shares, institutional investors have majority control over the company.


An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2023, DT reported revenue of $267.27M and operating income of $19.08M. The EBITDA in the recently reported quarter was $30.20M and diluted EPS was $0.01.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for DT since 0 analysts follow the stock currently. 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 $60.00 and a low target of $38.00, the average target price over the next 12 months is $52.67. Based on these targets, DT could surge 22.6% to reach the target high and fall by -22.35% to reach the target low. Reaching the average price target will result in a growth of 7.62% 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.

Summary of Insider Activity:

Insiders traded DT stock several times over the past three months with 1 Buys and 1 Sells. In these transactions, 15,812 shares were bought while 15,812 shares were sold. The number of buy transactions has increased to 17 while that of sell transactions has risen to 25 over the past year. The total number of shares bought during that period was 714,570 while 14,991,537 shares were sold.

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