Dynatrace, Inc. (DT) Stock: Why It’s Up

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Dynatrace, Inc. (DT) is headed up in the market today. The company, one that is focused in the technology sector, is presently trading at $21.33 after gaining 5.86% so far in today’s session. As it relates to tech stocks, there are several factors that have the potential to cause gains in the market. News is one of the most common reasons for movement. Here are the recent headlines surrounding DT:

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Nov-12-19 04:05PM Dynatrace to Present at the RBC Capital Markets Technology, Internet, Media and Telecommunications Conference
Nov-07-19 08:00AM Dynatrace Doubles the Scalability of Its Software Intelligence Platform to Meet Growing Web-Scale, Multi-Cloud Requirements
Oct-31-19 08:29AM Have Insiders Been Selling Dynatrace, Inc. (NYSE:DT) Shares?
Oct-30-19 04:05PM Dynatrace Reports Second Quarter of Fiscal Year 2020 Financial Results
Oct-29-19 12:50PM Cloud security company iboss eyes IPO

Nonetheless, any time investors are making a decision to invest, investors should take a look at much more than just news, especially in the ever evolving tech sector. Here’s what’s going on with Dynatrace, Inc..

Recent Moves From DT

Although a move up on a single session, like the move that we’re seeing from Dynatrace, Inc. might cause excitement in some investors, a single session gain alone should not be the basis of a decision to, or not to, buy a company’s stock. It’s always important to look into trends beyond a single session. When it comes to DT, below are the returns that we have seen:

  • Weekly – In the last seven days, DT has generated a price change that amounts to 6.65%.
  • Monthly – The return from Dynatrace, Inc. over the last 30 days works out to 17.20%.
  • Past 3 Months – Throughout the last 3 months, the company has produced a ROI that works out to 0.00%
  • Past 6 Months – Over the past 6 months, we have seen a change of 0 from the company.
  • YTD – Since the close of last year DT has produced a return on investment of -10.57%.
  • Full Year – Lastly, in the last year, we’ve seen movement of 0 from DT. Throughout this period, the stock has sold at a high of -22.38% and a low of 25.10%.

Important Ratios

Looking at a few ratios having to do with a company can provide investors a view of just how risky and/or rewarding a pick may be. Below are a few of the important ratios to think about when digging into DT.

Short Ratio – The short ratio is a measure of short interest. As the short ratio goes higher, it means that more investors have a belief that the value of the stock is headed for declines. Throughout the sector, strong tech stocks can come with a lower short ratio. On the other hand, we also tend to see quite a few short squeezes in the space. Nonetheless, in regard to Dynatrace, Inc., it’s short ratio comes to 4.59.

Quick & Current Ratios – The quick and current ratios are tools that are used to get an idea of the company’s liquidity. Essentially, they measure If a company is able to pay for its debts when they mature using quick assets or current assets. In the technology industry, several companies are heavily reliant on continued support from investors as they work to bring new technologies to market, the current and quick ratios can look damning. However, several better companies in the tech space come with good quick and current ratios. When it comes to DT, the quick and current ratios work out to 0.90 and 0.90 respectively.  

Book To Share Value – The book to share value ratio compares the value of assets owned by the company to the price of shares. In this particular case, that ratio is 3.36.

Cash To Share Value – Finally, the cash to share value ratio compares the total amount of cash the company has on hand to the value of the company’s stock. As it relates to DT, the cash to share value ratio is 0.76.

Is Big Money Interested In Dynatrace, Inc.

Humans that are into investing seem to be infatuated with the term “Smart money follows big money.” It makes sense. Big money became big money by making smart decisions in the market. So, by following the moves of big money institutions and insiders, we can get a glimpse of what market pros think about a stock. When it comes to big money interest in DT, here’s what we’re seeing:

Institutions own 5.30% of the company. Institutional interest has moved by 0 over the past three months. When it comes to insiders, those who are close to the company currently own 1.70% percent of DT shares. Institutions have seen ownership changes of an accumulative 0.00% over the last three months.

How Analysts Feel About Dynatrace, Inc.

Although it’s never a good idea to blindly follow the opinions of analysts, it is a good idea to consider their thoughts when validating your own due diligence when it comes to making investment decisions in the technology industry. Here are the recent moves that we have seen from analysts with regard to DT.

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Oct-31-19 Upgrade Citigroup Neutral → Buy $26 → $28
Aug-26-19 Initiated William Blair Outperform
Aug-26-19 Initiated UBS Buy $33
Aug-26-19 Initiated RBC Capital Mkts Outperform $28
Aug-26-19 Initiated Macquarie Neutral

Earnings

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $0.32. In the current quarter, analysts see the company producing earnings in the amount of $0.07. Over the last 5 years, DT has generated revenue in the amount of $0 with earnings coming in at 0. On a quarter over quarter basis, earnings have seen movement of 0 and revenue has seen movement of 27.00%.

What You Need To Know About Share Counts

Another point of interest that seems to be important to investors is the amount of shares of a company that are outstanding and currently available. At the moment, there are 277.21M shares of Dynatrace, Inc. outstanding. Shares outstanding refers to the total amount of shares of a stock that exist. As far as the float goes, or the amount of shares that are actually available on the retail market, DT has a float of 271.27M.

Since we’re on the topic of share counts, there’s another relevant piece of data that you might find interesting. That would be the short percentage of the float. Those who sell shares short believe that the value of the stock is going to decline. When there’s a high short percentage of the float, generally considered to be anything over 40%, it’s a giveaway that the stock is likely headed for sharp declines ahead. Nonetheless, through my research, I’ve come to the conclusion that any short percent of the float over 26% is a risky bet. When it comes to DT, the short percent of the float is 1.61%.

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