Dynatrace Stock Extends A 7-Day Losing Streak To A 27% Loss
Shares of Dynatrace (DT) have closed lower in each of the last 7 sessions, a cumulative decline of 27.1%. That erased about $5.0 billion from the company’s market value, which now stands at about $13.5 billion. The stock closed at $46.78 on Wednesday, November 4, 28.3% below its 52-week high of $65.25 and 44.6% above its low of $32.36.
The Streak Next To The S&P 500
Returns for DT and the S&P 500 over the streak and the periods around it, all ending Wednesday, November 4 and including dividends:
| Return Period | DT | S&P 500 |
|---|---|---|
| 1 Day | -0.5% | 1.6% |
| 7 Days (Current Streak) | -27.1% | 0.2% |
| 1 Month (21 Trading Days) | -23.4% | -1.6% |
| 3 Months (63 Trading Days) | -4.3% | 0.0% |
| Year To Date | 7.9% | 13.4% |
| 1 Year (252 Trading Days) | -7.3% | 13.5% |
A Stock-Specific Slide, Or A Market Move?
Over the same 7 trading days, the S&P 500 returned +0.2% including dividends, so the slide is mostly Dynatrace’s own story rather than the market’s. Over the past three months the stock is down 4.3%, a window that includes the streak; over the other 56 sessions of that window it was up 31.3%.
What The Numbers Say About The Slide
On the fundamentals, revenue grew 17.8% over the last twelve months, against a median of 17.9% for S&P 500 Information Technology stocks; its operating margin is 13.6%, versus a median of 21.5%; and the stock trades at 83.2 times trailing earnings against a median of 29.6. The read is mixed.
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Weakness In One Name Should Be Noise, Not News
For a diversified holder, a streak like this is a data point. For a concentrated one, it is a hole in the plan. The difference is never the stock; it is the portfolio built around it.
Building that portfolio is what the Trefis High Quality (HQ) Portfolio does: roughly 30 businesses with the cash generation and balance-sheet strength to absorb a bad month, selected and rebalanced by rules. It has a track record of outpacing a benchmark that combines the S&P 500, the S&P MidCap 400, and the Russell 2000. Make the next streak, in either direction, someone else’s drama.