Important note

This AI stock analysis for Dynatrace is not up to date. Creating and accessing our AI stock Analysis (powered by our data and Chat GPT) is only available for our premium users. Sign up to get access today!

Dynatrace - AI Stock Analysis

Analysis generated November 13, 2024

Dynatrace provides software intelligence for the enterprise cloud. It delivers problem resolution for user experiences, application performance, and infrastructure, all through a unified cloud. Its technological prowess includes artificial intelligence and machine learning solutions, empowering digital transformation initiatives worldwide. Founded in 2005 and headquartered in Waltham, Massachusetts, Dynatrace has grown to serve a diverse clientele, ensuring the reliability and performance of their software applications.

Fundamental Analysis

Revenue for the last quarter was $418M. This is an increase of 1.44% compared to the previous quarter, which is a positive sign of growth. Compared to the same quarter last year, there is an increase of 15.92%, suggesting positive year-over-year growth. This marks a solid upward trend in revenue, significant for long-term growth.

Net income for the last quarter was $44M. This is an increase of 13.95% compared to the previous quarter, which is a positive sign of growth. Compared to the same quarter last year, there is an increase of 22.90%, suggesting positive year-over-year growth. Steady net income growth ensures meaningful profitability improvement.

EBITDA for the last quarter was $68M. This is an increase of 8.58% compared to the previous quarter, signaling healthy operational efficiency. Compared to the same quarter last year, there is an increase of 51.75%, indicating that Dynatrace is not just growing top-line revenue but also managing to improve its operational profitability significantly.

The current P/E ratio is 99.04, which may be considered high, potentially indicating overvaluation and a bearish outlook in the short term. High P/E ratios often imply that the market has high expectations for a company’s future growth prospects. However, it can also signal overvaluation risk.

Recent insider selling of stock is a potentially bearish signal. Insider sales often imply that those most familiar with the company may not foresee a significant upward trajectory in the near term.

Technical Analysis

Today’s stock price is $53.98, a decrease of 2.09% compared to a month ago, which may be concerning in the short term. Compared to a year ago, the price shows an increase of 2.74%, indicating a positive long-term trend despite short-term volatility.

The trend is currently bearish. The current SMA10 is $53.97, lower than the previous SMA10 of $53.98, suggesting a potential downward trend in price movement. Simple Moving Averages (SMAs) are commonly used to identify the direction of the trend.

The RSI is 46.3, indicating a neutral condition. The Relative Strength Index (RSI) measures the speed and change of price movements, generally signaling whether a stock is overbought or oversold. An RSI between 30 and 70 is considered neutral.

Alternative Data Analysis

Starting with job postings and employee sentiment, Dynatrace has 258 open positions. This number is up by 11% in the last couple of months, indicating that the company is looking to grow and expand, a generally healthy sign.

The business outlook among employees at Dynatrace is neutral. This indicates neither positive nor negative sentiment, offering no strong inclination of internal employee confidence.

Moving on to customer acquisition, Dynatrace has an estimated 1.5M visitors to their webpage. The number of visitors is up by 23% in the last couple of months, a bullish trend as this can indicate an increase in potential customers.

Regarding customer engagement, Dynatrace has 5,800 followers on their Instagram page, with the number of followers up by 6% in the last couple of months, indicating increased interest in the company. However, the 19,000 followers on their Twitter page did not see any growth, indicating stable but stagnant interest.

AltIndex’s AI score, which integrates fundamental, technical, and alternative data, gives Dynatrace a score of 64, suggesting a buy signal.

Conclusion and Recommendation

Overall, Dynatrace shows strong fundamentals with a clear upward trend in both revenue and profitability. Despite the concerns of high P/E and insider selling, the company’s expanded hiring efforts and increased web traffic suggest a positive outlook. The technical indicators are somewhat mixed, showing short-term bearish trends but a neutral RSI.

Considering all factors, including solid year-over-year financial growth, the AI score's positive recommendation, and alternative data showing increased engagement and interest, Dynatrace appears to be a good long-term investment. Therefore, the recommendation would be a cautious "Buy," keeping an eye on market trends and insider activities for any changes that might warrant a reevaluation.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.