PagerDuty (NYSE:PD) Given Average Recommendation of “Hold” by Brokerages

PagerDuty (NYSE:PD) has been given an average rating of “Hold” by the twelve ratings firms that are presently covering the stock, Marketbeat Ratings reports. Three research analysts have rated the stock with a sell recommendation, six have issued a hold recommendation and three have given a buy recommendation to the company. The average 12 month target price among brokers that have issued ratings on the stock in the last year is $11.7778.

A number of analysts have weighed in on the company. Morgan Stanley set a $9.00 price target on PagerDuty in a research note on Thursday, February 19th. William Blair restated a “market perform” rating on shares of PagerDuty in a research note on Friday, March 13th. Wall Street Zen cut PagerDuty from a “buy” rating to a “hold” rating in a research note on Monday. Weiss Ratings restated a “sell (d)” rating on shares of PagerDuty in a research note on Friday, May 22nd. Finally, Canaccord Genuity Group cut their price target on PagerDuty from $19.00 to $9.00 and set a “buy” rating on the stock in a research note on Friday, March 13th.

Key Stories Impacting PagerDuty

Here are the key news stories impacting PagerDuty this week:

• Positive Sentiment: PagerDuty beat Q1 expectations, reporting EPS of $0.32 versus $0.24 expected and revenue of $121.0 million versus $119.5 million expected. Management also issued Q2 guidance slightly above consensus, which supports the case for the stock being up on the day. PagerDuty Announces First Quarter Fiscal 2027 Financial Results
• Positive Sentiment: The board authorized a new $100 million share buyback, which may help support earnings per share and signals management believes the stock is undervalued. RTT News
• Neutral Sentiment: The company said it is expanding AI offerings and its Operations Cloud usage-based model, but investors are still waiting to see whether these initiatives can accelerate growth meaningfully. TipRanks article
• Negative Sentiment: Despite the earnings beat, the report showed weak underlying trends: revenue grew less than 1% year over year, ARR was flat, large-customer counts declined, and DBNRR fell below 100%, suggesting churn is outpacing expansion. Seeking Alpha article

Institutional Trading of PagerDuty

Hedge funds and other institutional investors have recently made changes to their positions in the company. EverSource Wealth Advisors LLC increased its position in shares of PagerDuty by 252.0% during the third quarter. EverSource Wealth Advisors LLC now owns 1,605 shares of the company’s stock worth $27,000 after purchasing an additional 1,149 shares in the last quarter. Aster Capital Management DIFC Ltd acquired a new stake in shares of PagerDuty during the third quarter worth about $59,000. WealthCollab LLC acquired a new stake in shares of PagerDuty during the first quarter worth about $25,000. State of Alaska Department of Revenue acquired a new stake in shares of PagerDuty during the third quarter worth about $67,000. Finally, KBC Group NV increased its position in shares of PagerDuty by 89.5% during the fourth 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. Institutional investors and hedge funds own 97.26% of the company’s stock.

PagerDuty Stock Up 3.3%

PagerDuty stock opened at $7.43 on Friday. PagerDuty has a 1-year low of $5.70 and a 1-year high of $18.00. The company has a debt-to-equity ratio of 1.56, a current ratio of 2.01 and a quick ratio of 2.01. The stock has a market cap of $631.48 million, a PE ratio of 4.04, a P/E/G ratio of 3.19 and a beta of 0.78. The stock’s fifty day moving average is $6.66 and its two-hundred day moving average is $9.43.

PagerDuty (NYSE:PD) last posted its quarterly earnings results on Thursday, May 28th. The company reported $0.32 earnings per share for the quarter, beating analysts’ consensus estimates of $0.24 by $0.08. PagerDuty had a return on equity of 16.29% and a net margin of 35.30%.The company had revenue of $120.97 million for the quarter, compared to analysts’ expectations of $119.52 million. During the same period last year, the firm earned $0.24 earnings per share. PagerDuty’s quarterly revenue was up 1.0% on a year-over-year basis. PagerDuty has set its Q2 2027 guidance at 0.290-0.310 EPS. On average, sell-side analysts expect that PagerDuty will post 0.34 EPS for the current fiscal year.

PagerDuty announced that its board has authorized a share buyback plan on Thursday, May 28th that allows the company to repurchase $100.00 million in outstanding shares. This repurchase authorization allows the company to purchase up to 16.4% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s board of directors believes its shares are undervalued.

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.