Not a good buy right now: the stock is in a clear short-term downtrend (bearish moving averages and weakening momentum), and price is sitting just below/around near-term support.
While DT is extremely oversold (RSI-6 ~12) and could snap back, the setup is noisy with earnings on 2026-02-09 (pre-market) and very elevated implied volatility—risk of another gap move is high.
Options positioning is mixed (calls dominate open interest, but today’s flow is put-heavy), which reinforces “event-risk” rather than a clean bullish consensus.
No notable insider trend and no recent Congress trading data—no “follow-the-money” confirmation for an aggressive buy today.
Technical Analysis
Trend/Momentum: Bearish overall. SMA structure is negative (SMA_200 > SMA_20 > SMA_5), and MACD histogram is below zero (-0.512) and negatively expanding → downtrend pressure is still increasing.
Oversold condition: RSI_6 at ~12.5 is deeply oversold, which often precedes short-term bounces, but does not by itself confirm a bottom.
Levels: Pivot 37.853 is well above current price (34.19), indicating the stock is trading below its key balance point.
Support/Resistance: S1 34.652 is close and being tested; a break increases downside odds toward S2 32.674. Resistance levels to reclaim are 37.853 (pivot) then 41.054 (R1).
Probabilistic pattern read: Similar-pattern stats imply near-term weakness (next day and next week bias negative), with a better 1-month rebound probability (next month +5.47% modeled).
Options Data
Bullish
Open Interest Put-Call Ratio
Bearish
Option Volume Put-Call Ratio
Sentiment snapshot: Open interest put/call = 0.18 (call-heavy positioning), but volume put/call = 2.7 (today’s traded flow is put-skewed) → longer-term positioning optimistic, near-term hedging/bearish trading.
Volatility: IV_30d 62.03 vs historical vol 42.19; IV percentile 96.41 → options are priced for a big move (consistent with the upcoming earnings event).
Activity: Today’s option volume is very elevated vs 30-day average (32.1x), reinforcing “event-driven” positioning rather than steady bullish accumulation.
Takeaway: Options market is signaling high uncertainty into earnings; directional edge is not clean despite call-heavy open interest.
Technical Summary
Sell
9
Buy
5
Positive Catalysts
strengthens the platform story in observability and could support upsell/retention.
Neutral/Negative Catalysts
Technical pressure: Downtrend remains intact (bearish MA stack + MACD deteriorating), increasing the odds that any bounce is sold.
Earnings catalyst risk (2026-02-09 pre-market): With IV extremely high, the market is pricing a sharp post-earnings move; disappointment risk is meaningful.
Hedge fund flow: “Hedge Funds are Selling,” with selling amount up 338.51% QoQ—weak institutional momentum.
Analyst target cuts: Broad price-target reductions point to multiple compression and macro caution in enterprise software demand assumptions.
Profitability: Net income 57.243M, +30.07% YoY (earnings growth outpacing revenue).
EPS: 0.19, +26.67% YoY.
Margins: Gross margin 81.82%, up +1.96% YoY, indicating strong unit economics and operating leverage potential.
Growth
Profitability
Efficiency
Analyst Ratings and Price Target Trends
Recent trend: Multiple firms kept Buy/Outperform ratings but cut price targets through January 2026 (macro caution and sector multiple compression the recurring reason).
Wall Street pros: Differentiation in large customers, observability + AI tailwinds, and improving/stabilizing enterprise spending narrative.
Wall Street cons: Need for clearer AI monetization acceleration, consumption-model transition uncertainty, and valuation/multiple compression fears in enterprise software.
Wall Street analysts forecast DT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DT is 59.12 USD with a low forecast of 50 USD and a high forecast of 67 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
19 Analyst Rating
Wall Street analysts forecast DT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DT is 59.12 USD with a low forecast of 50 USD and a high forecast of 67 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Buy
4 Hold
0 Sell
Strong Buy
Current: 33.470
Low
50
Averages
59.12
High
67
Current: 33.470
Low
50
Averages
59.12
High
67
Cantor Fitzgerald
Neutral
downgrade
$51 -> $37
AI Analysis
2026-02-06
New
Reason
Cantor Fitzgerald
Price Target
$51 -> $37
AI Analysis
2026-02-06
New
downgrade
Neutral
Reason
Cantor Fitzgerald lowered the firm's price target on Dynatrace to $37 from $51 and keeps a Neutral rating on the shares. The observability sector showed solid performance, with results ranging from in-line to ahead of plan, the analyst tells investors in a research note. Security-related sales cycles have strengthened following recent M&A, while ongoing platform consolidation continues to benefit pure-play companies, the firm says.
Rosenblatt
Rosenblatt
Buy
maintain
$67 -> $60
2026-01-30
Reason
Rosenblatt
Rosenblatt
Price Target
$67 -> $60
2026-01-30
maintain
Buy
Reason
Rosenblatt lowered the firm's price target on Dynatrace to $60 from $67 and keeps a Buy rating on the shares. The firm sees the company reporting an inline fiscal Q3 report. It cites comparable multiple compression and ongoing macro concerns impacting enterprise software for the target cut.
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