James Benson Executes Sell Order: Offloads $2.13M In Dynatrace Stock

Disclosed on February 13, James Benson, EVP at Dynatrace DT, executed a substantial insider sell as per the latest SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Thursday showed that Benson sold 34,932 shares of Dynatrace. The total transaction amounted to $2,132,654.

At Thursday morning, Dynatrace shares are up by 0.13%, trading at $62.5.

Unveiling the Story Behind Dynatrace

Dynatrace is a cloud-native company that focuses on analyzing machine data. Its product portfolio, delivered as software as a service, allows a client to monitor and analyze its entire IT infrastructure. Dynatrace’s platform can ingest and analyze large amounts of machine-generated data in real time, allowing clients to use it for a variety of applications throughout their businesses.

Dynatrace’s Financial Performance

Positive Revenue Trend: Examining Dynatrace’s financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 19.47% as of 31 December, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Information Technology sector.

Holistic Profitability Examination:

• Gross Margin: Achieving a high gross margin of 81.07%, the company performs well in terms of cost management and profitability within its sector.

• Earnings per Share (EPS): Dynatrace’s EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 1.21.

Debt Management: Dynatrace’s debt-to-equity ratio is below the industry average. With a ratio of 0.03, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Navigating Market Valuation:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 39.01 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: The P/S ratio of 11.56 is lower than the industry average, implying a discounted valuation for Dynatrace’s stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Dynatrace’s EV/EBITDA ratio, lower than industry averages at 82.5, indicates attractively priced shares.

Market Capitalization Analysis: Reflecting a smaller scale, the company’s market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

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Unmasking the Significance of Insider Transactions

Considering insider transactions is valuable, but it’s crucial to evaluate them in conjunction with other investment factors.

In the context of legal matters, the term “insider” refers to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

Pointing towards optimism, a company insider’s new purchase signals their positive anticipation for the stock to rise.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

Understanding Crucial Transaction Codes

When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Dynatrace’s Insider Trades.

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This article was generated by Benzinga’s automated content engine and reviewed by an editor.