Starboard takes major stake in Dynatrace

Activist investor Starboard Value has reportedly built a major position in AI software company Dynatrace and is pushing for strategic changes aimed at lifting its valuation.

According to reports, Starboard argues Dynatrace shares are undervalued relative to peers and believes slower revenue growth concerns have weighed too heavily on the stock. The firm is reportedly urging faster capital returns, including an accelerated share buyback program that could exceed $2.5 billion over three years.

Dynatrace shares rose sharply in after-hours trading following the report. The company had already launched a $1 billion repurchase plan earlier this year despite shares remaining down significantly year-to-date.

The move positions Starboard among Dynatrace’s largest shareholders and signals possible pressure for broader financial or operational adjustments.