PagerDuty (NYSE:PD) Stock Price Down 9.4% – What’s Next?

PagerDuty (NYSE:PD)’s share price dropped 9.4% during mid-day trading on Wednesday . The stock traded as low as $9.23 and last traded at $9.1850. Approximately 1,214,504 shares changed hands during trading, a decline of 58% from the average daily volume of 2,910,620 shares. The stock had previously closed at $10.14.

Analyst Upgrades and Downgrades

PD has been the subject of several research analyst reports. Weiss Ratings reiterated a “sell (d)” rating on shares of PagerDuty in a research report on Friday, May 22nd. Canaccord Genuity Group lifted their target price on shares of PagerDuty from $9.00 to $10.00 and gave the company a “buy” rating in a research report on Friday, May 29th. Wall Street Zen lowered shares of PagerDuty from a “buy” rating to a “hold” rating in a research report on Monday, May 25th. Royal Bank Of Canada boosted their price objective on shares of PagerDuty from $8.00 to $9.00 and gave the stock a “sector perform” rating in a report on Friday, May 29th. Finally, Truist Financial lowered their price objective on shares of PagerDuty from $12.00 to $9.00 and set a “buy” rating for the company in a report on Friday, March 13th. Three equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus price target of $11.25.

PagerDuty Trading Down 9.9%

The stock has a market capitalization of $704.49 million, a P/E ratio of 4.48, a price-to-earnings-growth ratio of 4.75 and a beta of 0.94. The company has a current ratio of 1.95, a quick ratio of 1.95 and a debt-to-equity ratio of 1.83. The stock’s fifty day moving average price is $6.80 and its two-hundred day moving average price is $9.35.

PagerDuty (NYSE:PD) last posted its quarterly earnings results on Thursday, May 28th. The company reported $0.32 EPS for the quarter, beating analysts’ consensus estimates of $0.24 by $0.08. PagerDuty had a net margin of 38.60% and a return on equity of 18.20%. The company had revenue of $120.97 million during the quarter, compared to analyst estimates of $119.52 million. During the same period in the prior year, the business posted $0.24 EPS. The firm’s revenue was up 1.0% compared to the same quarter last year. PagerDuty has set its Q2 2027 guidance at 0.290-0.310 EPS. Equities research analysts forecast that PagerDuty will post 0.34 EPS for the current year.

PagerDuty announced that its board has approved a share buyback plan on Thursday, May 28th that permits the company to buyback $100.00 million in shares. This buyback authorization permits the company to repurchase up to 16.4% of its stock through open market purchases. Stock buyback plans are often a sign that the company’s leadership believes its stock is undervalued.

Institutional Investors Weigh In On PagerDuty

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. WealthCollab LLC bought a new stake in PagerDuty during the 1st quarter valued at $25,000. EverSource Wealth Advisors LLC raised its holdings in PagerDuty by 252.0% during the 3rd quarter. EverSource Wealth Advisors LLC now owns 1,605 shares of the company’s stock valued at $27,000 after buying an additional 1,149 shares during the last quarter. PNC Financial Services Group Inc. raised its holdings in PagerDuty by 1,219.9% in the 1st quarter. PNC Financial Services Group Inc. now owns 4,976 shares of the company’s stock worth $31,000 after purchasing an additional 4,599 shares in the last quarter. Optiver Holding B.V. raised its holdings in PagerDuty by 5,699.0% in the 1st quarter. Optiver Holding B.V. now owns 6,031 shares of the company’s stock worth $37,000 after purchasing an additional 5,927 shares in the last quarter. Finally, KBC Group NV raised its holdings in PagerDuty by 89.5% in the 4th quarter. KBC Group NV now owns 4,402 shares of the company’s stock worth $58,000 after purchasing an additional 2,079 shares in the last quarter. 97.26% of the stock is currently owned by institutional investors.

About PagerDuty

PagerDuty, Inc engages in the operation of a digital operations management platform in the United States and internationally. The company’s digital operations management platform collects data and digital signals from virtually any software-enabled system or device and leverage machine learning to correlate, process, and predict opportunities and issues. Its platform includes PagerDuty Incident Management that provides a real-time view across the status of a digital service while incorporating noise reduction to remove false positives; AIOps that applies machine learning to correlate and automate the identification of incidents from billions of events; Process Automation offers centralized design time and run time environment for orchestrating automated workflows that span across departments, technologies, and networks; Customer Service Operations, which is offered to orchestrate, automate, and scale responses to customer impacting issues.