Freestone Grove Partners LP Acquires Shares of 167,570 PagerDuty $PD

Key Points

• Freestone Grove Partners initiated a PagerDuty position of 167,570 shares worth approximately $1.62 million, representing about 0.22% of the company. Institutional investors collectively own 97.26% of PagerDuty.
• PagerDuty exceeded quarterly expectations with EPS of $0.32 and revenue of $124.44 million, while issuing fiscal 2027 EPS guidance of $1.33–$1.37. The company also authorized a $100 million share repurchase program covering up to 16.4% of its shares.
• Analyst sentiment remains mixed: Canaccord raised its price target to $15 with a Buy rating, but the broader consensus is Hold, with an average price target of $12.94.

Freestone Grove Partners LP bought a new position in PagerDuty (NYSE:PD - Free Report) in the 2nd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund bought 167,570 shares of the company's stock, valued at approximately $1,617,000. Freestone Grove Partners LP owned about 0.22% of PagerDuty as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds and other institutional investors have also 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. Deutsche Bank AG purchased a new stake in PagerDuty during the 2nd quarter valued at $5,642,000. Hsbc Holdings PLC purchased a new stake in PagerDuty during the 1st quarter valued at $789,000. 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. Finally, Pacer Advisors Inc. increased its holdings in shares of PagerDuty by 73.9% in the 1st quarter. Pacer Advisors Inc. now owns 569,907 shares of the company's stock worth $3,539,000 after purchasing an additional 242,100 shares in the last quarter. Institutional investors own 97.26% of the company's stock.

PagerDuty Price Performance

Shares of NYSE:PD opened at $13.80 on Friday. The firm's 50 day moving average price is $10.68 and its 200-day moving average price is $8.44. PagerDuty has a twelve month low of $5.70 and a twelve month high of $17.29. The company has a quick ratio of 1.95, a current ratio of 1.95 and a debt-to-equity ratio of 1.83. The stock has a market capitalization of $1.06 billion, a PE ratio of 6.90, a price-to-earnings-growth ratio of 3.55 and a beta of 0.93.

PagerDuty (NYSE:PD - Get Free Report) last posted its quarterly earnings data on Thursday, August 27th. The company reported $0.32 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.31 by $0.01. The company had revenue of $124.44 million for the quarter, compared to the consensus estimate of $123.27 million. PagerDuty had a net margin of 37.50% and a return on equity of 17.97%. The firm's revenue was up .8% compared to the same quarter last year. During the same quarter last year, the firm posted $0.30 earnings per share. PagerDuty has set its FY 2027 guidance at 1.330-1.370 EPS and its Q3 2027 guidance at 0.340-0.360 EPS. Equities research analysts expect that PagerDuty will post 0.58 EPS for the current year.

PagerDuty announced that its board has approved a stock repurchase program on Thursday, May 28th that authorizes the company to repurchase $100.00 million in shares. This repurchase authorization authorizes the company to repurchase up to 16.4% of its stock through open market purchases. Stock repurchase programs are often a sign that the company's board of directors believes its stock is undervalued.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on PD. Canaccord Genuity Group boosted their price target on PagerDuty from $10.00 to $15.00 and gave the stock a "buy" rating in a research note on Friday. Truist Financial increased their price objective on PagerDuty from $11.00 to $13.00 and gave the company a "buy" rating in a research report on Thursday, August 20th. Royal Bank Of Canada boosted their target price on PagerDuty from $9.00 to $12.00 and gave the stock a "sector perform" rating in a research report on Friday, August 14th. Weiss Ratings upgraded shares of PagerDuty from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Friday, August 21st. Finally, TD Cowen restated a "buy" rating on shares of PagerDuty in a report on Wednesday. Three research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $12.94.

Key Stories Impacting PagerDuty

Here are the key news stories impacting PagerDuty this week:

• Positive Sentiment: Q2 results exceeded expectations. PagerDuty reported adjusted earnings of $0.32 per share versus the $0.31 consensus estimate and revenue of $124.44 million, ahead of expectations for $123.27 million. Revenue increased 0.8% year over year. PagerDuty Q2 Earnings Results
• Positive Sentiment: Management raised its earnings outlook. Fiscal 2027 EPS guidance of $1.33 to $1.37 is well above the $1.17 analyst consensus, while third-quarter EPS guidance of $0.34 to $0.36 also exceeds expectations. Full-year revenue guidance of $491.5 million to $496.5 million is broadly in line with estimates. PagerDuty Guidance Update
• Positive Sentiment: Cost reductions are supporting margins. PagerDuty plans to cut approximately 15% of its workforce and forecast third-quarter operating margins of 26.5% to 27.5%. Investors appear to be viewing the restructuring as a way to accelerate profitable growth. The company also highlighted more than $500 million in annual recurring revenue and $33 million in quarterly free cash flow. PagerDuty Margin Forecast and Restructuring
• Positive Sentiment: Canaccord Genuity upgraded its valuation view. The firm raised its price target from $10 to $15 and maintained a Buy rating, providing additional support for the stock’s advance. Canaccord Raises PagerDuty Price Target
• Neutral Sentiment: Analyst opinion remains mixed. Monness analyst Brian White reiterated a Hold rating, citing sluggish demand and mixed fundamentals. This suggests investors may question whether the improved profitability can be sustained if growth remains limited. PagerDuty Hold Rating

PagerDuty Profile

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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