Dynatrace Falls as Investors Weigh $915 Million Arize Deal

Dynatrace (DT) is down 3.3% today. Here is some analysis on what might have caused this price movement.

Analysis: The most likely driver is investor reaction to Dynatrace’s planned acquisition of Arize, an AI observability company, announced on August 13. While the deal is positioned as a growth move, the market may be focusing on the sizable purchase price, the cash-and-stock structure, and management’s statement that it will dilute fiscal 2027 non-GAAP operating margin.

Details:

Dynatrace announced a definitive agreement to acquire Arize in a transaction valued at $915 million, made up of roughly $815 million in cash plus replacement equity awards for Arize employees.

Management said the transaction is expected to add about 200 basis points to ARR growth in fiscal 2027, but reduce non-GAAP operating margin by about 175 basis points.

The company said the acquisition is not expected to materially change second-quarter fiscal 2027 guidance or its ongoing share repurchase program, suggesting the stock move may reflect deal-pricing and integration concerns rather than a new hit to near-term forecasts.

Dynatrace had previously guided for fiscal 2027 revenue of $2.317 billion to $2.335 billion and non-GAAP operating margin of 29.5%, giving investors an existing baseline from which the acquisition’s margin trade-off can be judged.

Sources:

Dynatrace Investor Relations, SEC, Axios

Disclaimer: This price movement analysis was generated with the help of AI. Please double-check the information provided for mistakes.

$DT Insider Trading Activity

$DT insiders have traded $DT stock on the open market 8 times in the past 6 months. Of those trades, 1 have been purchases and 7 have been sales.

Here’s a breakdown of recent trading of $DT stock by insiders over the last 6 months:

STEPHEN A MCMAHON (EVP, Chief Customer Officer) purchased 3,000 shares for an estimated $107,250
BERND GREIFENEDER (EVP, Chief Technology Officer) has made 0 purchases and 7 sales selling 332 shares for an estimated $13,753.

To track insider transactions, check out Quiver Quantitative's insider trading dashboard. You can access data on insider stock transactions through the Quiver Quantitative API insider transaction endpoint.

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$DT Hedge Fund Activity

We have seen 325 institutional investors add shares of $DT stock to their portfolio, and 400 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

BANK OF AMERICA CORP /DE/ added 7,045,591 shares (+304.7%) to their portfolio in Q1 2026, for an estimated $260,545,955
BARCLAYS PLC added 3,815,442 shares (+419.1%) to their portfolio in Q2 2026, for an estimated $167,536,058
GOLDMAN SACHS GROUP INC removed 3,617,781 shares (-70.2%) from their portfolio in Q1 2026, for an estimated $133,785,541
PICTET ASSET MANAGEMENT HOLDING SA removed 3,047,025 shares (-19.3%) from their portfolio in Q2 2026, for an estimated $133,794,867
SIXTH STREET PARTNERS MANAGEMENT COMPANY, L.P. added 2,727,257 shares (+inf%) to their portfolio in Q2 2026, for an estimated $119,753,854
AMERIPRISE FINANCIAL INC added 2,130,579 shares (+170.5%) to their portfolio in Q2 2026, for an estimated $93,553,723
TWO SIGMA INVESTMENTS, LP added 2,107,149 shares (+141.7%) to their portfolio in Q1 2026, for an estimated $77,922,370

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard. You can access data on hedge funds moves and 13F filings through the Quiver Quantitative API 13F endpoint.

$DT Analyst Ratings

Wall Street analysts have issued reports on $DT in the last several months. We have seen 4 firms issue buy ratings on the stock, and 0 firms issue sell ratings.

Here are some recent analyst ratings:

William Blair issued a "Outperform" rating on 05/21/2026
Rosenblatt issued a "Buy" rating on 05/01/2026
DA Davidson issued a "Buy" rating on 04/29/2026
BTIG issued a "Buy" rating on 02/19/2026

To track analyst ratings and price targets for $DT, check out Quiver Quantitative's $DT forecast page.

$DT Price Targets

Multiple analysts have issued price targets for $DT recently. We have seen 21 analysts offer price targets for $DT in the last 6 months, with a median target of $46.0.

Here are some recent targets:

Miller Jump from Truist Securities set a target price of $55.0 on 07/09/2026
Matthew Martino from Goldman Sachs set a target price of $50.0 on 06/18/2026
Keith Bachman from BMO Capital set a target price of $50.0 on 06/16/2026
Radi Sultan from UBS set a target price of $60.0 on 06/16/2026
Brent Thill from Jefferies set a target price of $45.0 on 05/15/2026
Sanjit Singh from Morgan Stanley set a target price of $40.0 on 05/14/2026
Fatima Boolani from Citigroup set a target price of $50.0 on 05/14/2026

This article is not financial advice. See Quiver Quantitative's disclaimers for more information. Note that there may be inaccuracies due to mistakes in ticker-mapping, and other anomalies.