On July 17, 2023, Alicia Allen, Chief Accounting Officer of Dynatrace Inc (DT, Financial), sold 1500 shares of the company. This move is part of a larger trend of insider selling at Dynatrace Inc, which we will explore in more detail.
Who is Alicia Allen?
Alicia Allen is the Chief Accounting Officer at Dynatrace Inc. She has been with the company for several years and has a deep understanding of the company's financial operations. Over the past year, Allen has sold a total of 43,254 shares and has not made any purchases.
About Dynatrace Inc
Dynatrace Inc is a software intelligence company providing application performance management, artificial intelligence for operations, cloud infrastructure monitoring, and digital experience management. The company's platform allows businesses to modernize and automate IT operations, develop and release high-quality software faster, and improve user experiences for better business outcomes.
Insider Sell Analysis
Insider selling is often seen as a negative sign, as it could indicate that those with the most insight into a company's operations believe its stock is overvalued. However, it's important to consider the context. In the case of Dynatrace Inc, there have been 29 insider sells over the past year, with no insider buys. This could suggest a bearish sentiment among insiders.
The above image shows the trend of insider selling at Dynatrace Inc. As we can see, the number of sells has been consistently high over the past year, which could be a cause for concern for investors.
Stock Price and Valuation
On the day of Alicia Allen's recent sell, shares of Dynatrace Inc were trading at $54.96, giving the company a market cap of $15.997 billion. The price-earnings ratio is 147.49, significantly higher than the industry median of 28.5, suggesting that the stock may be overvalued.
However, according to the GuruFocus Value, the stock is significantly undervalued. The GF Value of Dynatrace Inc is $79.07, resulting in a price-to-GF-Value ratio of 0.7.
The GF Value is calculated based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates. Despite the high price-earnings ratio, the low price-to-GF-Value ratio suggests that the stock could be a good investment opportunity.
Conclusion
While the consistent insider selling at Dynatrace Inc could be a red flag, the company's strong GF Value suggests that the stock is undervalued. Investors should consider these factors and conduct further research before making a decision.
