RBC Capital Mkts slashes price target on Dynatrace Inc. [DT] – find out why.


Dynatrace Inc. [NYSE: DT] loss -4.41% on the last trading session, reaching $30.11 price per share at the time. The company report on April 28, 2022 that Meliá Hotels International Accelerates Digital Transformation with Dynatrace During Global Travel Resurgence.

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Precise answers and intelligent automation help teams deliver frictionless guest experiences faster.

Software intelligence company Dynatrace (NYSE: DT) today announced Meliá, the international luxury hotel chain, is using the Dynatrace® platform to deliver frictionless guest experiences as the demand for travel hits record levels. In anticipation of this industry shift, and to meet guests on the mobile and online platforms where they prefer to interact, Meliá accelerated its digital transformation by migrating its critical applications, including those supporting its online reservation and contact center services, to a cloud-native environment running on Kubernetes in AWS. This provided the agility Meliá needed to release better digital functionality faster, so its guests could access more of its hotel services via mobile and web platforms. The Dynatrace® platform’s broad and deep observability and advanced AIOps capabilities have allowed Meliá to ensure its digital services deliver the same quality experience as in-person interactions with hotel staff.

Dynatrace Inc. represents 284.72 million in outstanding shares, while the company has a total market value of $8.95 billion with the latest information. DT stock price has been found in the range of $29.89 to $32.63.

If compared to the average trading volume of 2.82M shares, DT reached a trading volume of 3928368 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Dynatrace Inc. [DT]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for DT shares is $63.50 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on DT stock is a recommendation set at 1.90. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

RBC Capital Mkts have made an estimate for Dynatrace Inc. shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on February 03, 2022. While these analysts kept the previous recommendation, Needham dropped their target price from $68 to $56. The new note on the price target was released on February 03, 2022, representing the official price target for Dynatrace Inc. stock. Previously, the target price had yet another drop from $75 to $45, while Loop Capital kept a Hold rating on DT stock. On February 03, 2022, analysts decreased their price target for DT shares from 70 to 65.

The Average True Range (ATR) for Dynatrace Inc. is set at 2.51, with the Price to Sales ratio for DT stock in the period of the last 12 months amounting to 10.25. The Price to Book ratio for the last quarter was 6.72, with the Price to Cash per share for the same quarter was set at 1.38. Price to Free Cash Flow for DT in the course of the last twelve months was 38.66 with Quick ratio for the last quarter at 1.10.

Trading performance analysis for DT stock

Dynatrace Inc. [DT] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -27.11. With this latest performance, DT shares dropped by -31.13% in over the last four-week period, additionally sinking by -60.40% over the last 6 months – not to mention a drop of -32.88% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for DT stock in for the last two-week period is set at 25.83, with the RSI for the last a single of trading hit 20.66, and the three-weeks RSI is set at 29.90 for Dynatrace Inc. [DT]. The present Moving Average for the last 50 days of trading for this stock 42.20, while it was recorded at 33.25 for the last single week of trading, and 57.61 for the last 200 days.

Dynatrace Inc. [DT]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Dynatrace Inc. [DT] shares currently have an operating margin of +13.07 and a Gross Margin at +76.91. Dynatrace Inc.’s Net Margin is presently recorded at +10.76.

Return on Total Capital for DT is now 6.08, given the latest momentum, and Return on Invested Capital for the company is 5.02. Return on Equity for this stock inclined to 7.30, with Return on Assets sitting at 3.49. When it comes to the capital structure of this company, Dynatrace Inc. [DT] has a Total Debt to Total Equity ratio set at 39.48. Additionally, DT Total Debt to Total Capital is recorded at 28.30, with Total Debt to Total Assets ending up at 19.48. Long-Term Debt to Equity for the company is recorded at 38.62, with the Long-Term Debt to Total Capital now at 27.69.

Reflecting on the efficiency of the workforce at the company, Dynatrace Inc. [DT] managed to generate an average of $27,245 per employee. Receivables Turnover for the company is 2.67 with a Total Asset Turnover recorded at a value of 0.32.Dynatrace Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.10 and a Current Ratio set at 1.10.

Dynatrace Inc. [DT]: An earnings per share (EPS) analysis

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for DT. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Dynatrace Inc. go to 14.90%.

An analysis of insider ownership at Dynatrace Inc. [DT]

There are presently around $8,470 million, or 96.80% of DT stock, in the hands of institutional investors. The top three institutional holders of DT stocks are: THOMA BRAVO, L.P. with ownership of 84,298,270, which is approximately 0% of the company’s market cap and around 0.60% of the total institutional ownership; VANGUARD GROUP INC, holding 18,373,006 shares of the stock with an approximate value of $578.75 million in DT stocks shares; and FMR LLC, currently with $471.52 million in DT stock with ownership of nearly 2.996% of the company’s market capitalization.

Positions in Dynatrace Inc. stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 244 institutional holders increased their position in Dynatrace Inc. [NYSE:DT] by around 23,065,137 shares. Additionally, 171 investors decreased positions by around 26,601,560 shares, while 38 investors held positions by with 219,223,511 shares. The mentioned changes placed institutional holdings at 268,890,208 shares, according to the latest SEC report filing. DT stock had 79 new institutional investments in for a total of 2,873,874 shares, while 59 institutional investors sold positions of 6,215,093 shares during the same period.