Overview
- Starboard, which disclosed Tuesday it had built a substantial position, sent a letter pushing management to speed up share repurchases and improve efficiency.
- The fund is asking Dynatrace to buy back more than $2.5 billion of stock over three years, topping the $1 billion program the company announced in February.
- Starboard outlines at least a 500-basis-point gain in adjusted operating margin by fiscal 2029 and projects free cash flow per share above $3.30 within three years.
- Reports of the campaign lifted Dynatrace shares about 8% in after-hours and premarket trading, while public confirmation and commentary from both sides have been limited.
- The investor argues AI adoption should boost demand for Dynatrace’s observability software and says the stock trades at a discount to infrastructure and cybersecurity peers after a year-to-date slide.