Arrowstreet Capital Limited Partnership Trims Stake in PagerDuty $PD

Key Points

• Arrowstreet Capital cut its PagerDuty stake by 93.6% in the first quarter, selling 340,349 shares and retaining 23,153 shares valued at approximately $144,000. Institutional investors collectively own 97.26% of the company.
• PagerDuty reported quarterly EPS of $0.32, exceeding the $0.24 consensus estimate, while revenue reached $120.97 million. The company also authorized a $100 million share repurchase plan, equivalent to up to 16.4% of outstanding shares.
• PagerDuty shares recently traded at $11.68, up 5.2%, but analyst sentiment remains mixed: the stock has a consensus “Hold” rating and an average price target of $11.50.

Arrowstreet Capital Limited Partnership cut its position in shares of PagerDuty (NYSE:PD - Free Report) by 93.6% in the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 23,153 shares of the company's stock after selling 340,349 shares during the period. Arrowstreet Capital Limited Partnership's holdings in PagerDuty were worth $144,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds have also made changes to their positions in the company. WealthCollab LLC bought a new position in PagerDuty during the 1st quarter worth about $25,000. PNC Financial Services Group Inc. boosted its stake in shares of PagerDuty by 1,219.9% during the first quarter. PNC Financial Services Group Inc. now owns 4,976 shares of the company's stock valued at $31,000 after purchasing an additional 4,599 shares in the last quarter. KBC Group NV boosted its stake in shares of PagerDuty by 89.5% during the fourth quarter. KBC Group NV now owns 4,402 shares of the company's stock valued at $58,000 after purchasing an additional 2,079 shares in the last quarter. Kestra Advisory Services LLC bought a new position in shares of PagerDuty during the fourth quarter valued at approximately $68,000. Finally, Allspring Global Investments Holdings LLC purchased a new position in PagerDuty during the first quarter valued at approximately $71,000. 97.26% of the stock is currently owned by hedge funds and other institutional investors.

PagerDuty Trading Up 5.2%

Shares of NYSE:PD opened at $11.68 on Friday. The business's 50-day moving average is $9.76 and its 200 day moving average is $8.24. PagerDuty has a 1 year low of $5.70 and a 1 year high of $17.29. The firm has a market capitalization of $900.68 million, a P/E ratio of 5.73, a P/E/G ratio of 3.00 and a beta of 0.93. The company has a debt-to-equity ratio of 1.83, a current ratio of 1.95 and a quick ratio of 1.95.

PagerDuty (NYSE:PD - Get Free Report) last released 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. The company had revenue of $120.97 million during the quarter, compared to analysts' expectations of $119.52 million. PagerDuty had a return on equity of 18.20% and a net margin of 38.60%.The firm's revenue was up 1.0% compared to the same quarter last year. During the same period last year, the business posted $0.24 earnings per share. PagerDuty has set its Q2 2027 guidance at 0.290-0.310 EPS. On average, research analysts predict that PagerDuty will post 0.58 earnings per share for the current fiscal year.

PagerDuty announced that its Board of Directors has authorized a share repurchase plan on Thursday, May 28th that authorizes the company to buyback $100.00 million in outstanding shares. This buyback authorization authorizes the company to purchase up to 16.4% of its shares through open market purchases. Shares buyback plans are usually a sign that the company's board of directors believes its shares are undervalued.

Analysts Set New Price Targets

PD has been the subject of a number of recent research reports. Weiss Ratings raised shares of PagerDuty from a "sell (d)" rating to a "sell (d+)" rating in a research note on Monday, July 13th. Wall Street Zen downgraded PagerDuty from a "buy" rating to a "hold" rating in a report on Saturday, July 25th. Royal Bank Of Canada boosted their price target on PagerDuty from $8.00 to $9.00 and gave the stock a "sector perform" rating in a research report on Friday, May 29th. Truist Financial upped their price objective on PagerDuty from $9.00 to $11.00 and gave the stock a "buy" rating in a research note on Thursday, July 9th. Finally, Morgan Stanley downgraded PagerDuty from an "equal weight" rating to an "underweight" rating and dropped their price objective for the company from $10.00 to $9.00 in a research report on Tuesday, July 21st. Three equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and three have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, PagerDuty has a consensus rating of "Hold" and a consensus price target of $11.50.

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.

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