Dynatrace stock rose nearly 5% to $37.37 in post‑market trading after WSJ reported Starboard Value took a significant stake.
Starboard is now among Dynatrace’s top five shareholders and is urging margin expansion, sales‑marketing cuts, and faster capital returns.
The hedge fund argues the shares trade at a discount due to slowing revenue growth and investor skepticism over near‑term prospects.
Dynatrace recently approved a $1 billion buyback, but Starboard believes over $2.5 billion could be returned to shareholders in three years.