PagerDuty (NYSE:PD) Trading 9.2% Higher – Still a Buy?

PagerDuty (NYSE:PD) shares rose 9.2% during mid-day trading on Monday . The company traded as high as $9.87 and last traded at $9.9150. Approximately 417,649 shares traded hands during mid-day trading, a decline of 84% from the average session volume of 2,652,651 shares. The stock had previously closed at $9.08.

Analyst Upgrades and Downgrades

PD has been the topic of a number of research reports. Truist Financial boosted their target price on shares of PagerDuty from $9.00 to $11.00 and gave the company a “buy” rating in a report on Thursday, July 9th. Wall Street Zen lowered shares of PagerDuty from a “buy” rating to a “hold” rating in a research note on Saturday. Morgan Stanley cut shares of PagerDuty from an “equal weight” rating to an “underweight” rating and cut their price objective for the stock from $10.00 to $9.00 in a report on Tuesday, July 21st. Canaccord Genuity Group raised their target price on shares of PagerDuty from $9.00 to $10.00 and gave the company a “buy” rating in a research note on Friday, May 29th. Finally, Weiss Ratings raised shares of PagerDuty from a “sell (d)” rating to a “sell (d+)” rating in a research note on Monday, July 13th. Three investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $11.50.

PagerDuty Stock Performance

The company has a debt-to-equity ratio of 1.83, a current ratio of 1.95 and a quick ratio of 1.95. The business has a 50 day moving average price of $9.09 and a 200 day moving average price of $8.30. The stock has a market capitalization of $760.79 million, a PE ratio of 4.84, a PEG ratio of 2.33 and a beta of 0.94.

PagerDuty (NYSE:PD) last posted its quarterly earnings results on Thursday, May 28th. The company reported $0.32 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.24 by $0.08. The firm had revenue of $120.97 million during the quarter, compared to analyst estimates of $119.52 million. PagerDuty had a return on equity of 18.20% and a net margin of 38.60%.PagerDuty’s quarterly revenue was up 1.0% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.24 EPS. PagerDuty has set its Q2 2027 guidance at 0.290-0.310 EPS. As a group, equities research analysts expect that PagerDuty will post 0.58 earnings per share for the current year.

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

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. raised its holdings in PagerDuty by 3.8% in the 4th quarter. Vanguard Group Inc. now owns 13,066,929 shares of the company’s stock worth $171,307,000 after acquiring an additional 472,975 shares during the last quarter. Y Intercept Hong Kong Ltd boosted its stake in PagerDuty by 801.4% during the 1st quarter. Y Intercept Hong Kong Ltd now owns 206,701 shares of the company’s stock valued at $1,284,000 after purchasing an additional 183,770 shares during the last quarter. KBC Group NV increased its holdings in shares of PagerDuty by 5,537.9% in the 1st quarter. KBC Group NV now owns 248,181 shares of the company’s stock worth $1,541,000 after purchasing an additional 243,779 shares in the last quarter. GC Wealth Management RIA LLC bought a new stake in shares of PagerDuty in the 1st quarter worth $2,552,000. Finally, WealthCollab LLC purchased a new position in shares of PagerDuty in the first quarter worth $25,000. Institutional investors own 97.26% of the company’s stock.

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.