PagerDuty (NYSE:PD) Lowered to Hold Rating by Wall Street Zen

Key Points

• PagerDuty was downgraded by Wall Street Zen from a buy to a hold rating, adding to a mixed analyst backdrop for the stock.
• The broader analyst view remains cautious: the stock now has a consensus Hold rating and an average price target of $11.50, with several firms recently adjusting ratings and targets in different directions.
• PagerDuty shares were up 5.2% in Friday trading to $9.07; the company also reported quarterly earnings above estimates and authorized a $100 million stock buyback.

PagerDuty (NYSE:PD - Get Free Report) was downgraded by analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued on Saturday.

Several other research firms have also commented on PD. Weiss Ratings raised PagerDuty from a "sell (d)" rating to a "sell (d+)" rating in a report on Monday, July 13th. Royal Bank Of Canada boosted their price target on PagerDuty from $8.00 to $9.00 and gave the company a "sector perform" rating in a report on Friday, May 29th. Morgan Stanley lowered PagerDuty from an "equal weight" rating to an "underweight" rating and lowered their price objective for the stock from $10.00 to $9.00 in a research report on Tuesday. Canaccord Genuity Group raised their price objective on shares of PagerDuty from $9.00 to $10.00 and gave the stock a "buy" rating in a research note on Friday, May 29th. Finally, Truist Financial lifted 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. Three investment analysts have rated the stock with a Buy rating, five have given a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $11.50.

PagerDuty Trading Up 5.2%

NYSE PD opened at $9.07 on Friday. The company has a market capitalization of $699.89 million, a PE ratio of 4.45, a P/E/G ratio of 2.21 and a beta of 0.94. The company has a fifty day moving average of $9.09 and a 200 day moving average of $8.33. 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 1.83, a current ratio of 1.95 and a quick ratio of 1.95.

PagerDuty (NYSE:PD - Get Free Report) last announced its quarterly earnings results on Thursday, May 28th. The company reported $0.32 earnings per share for the quarter, topping the consensus estimate of $0.24 by $0.08. The company had revenue of $120.97 million for the quarter, compared to the consensus estimate of $119.52 million. PagerDuty had a return on equity of 18.20% and a net margin of 38.60%.The firm's revenue for the quarter was up 1.0% compared to the same quarter last year. During the same period last year, the firm earned $0.24 EPS. PagerDuty has set its Q2 2027 guidance at 0.290-0.310 EPS. Research analysts forecast that PagerDuty will post 0.58 earnings per share for the current year.

PagerDuty announced that its board has initiated a stock buyback program 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 programs are typically an indication that the company's management believes its shares are undervalued.

Institutional Investors Weigh In On PagerDuty

Large investors have recently added to or reduced their stakes in the business. WealthCollab LLC acquired a new stake in shares of PagerDuty during the 1st quarter worth about $25,000. PNC Financial Services Group Inc. increased 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 worth $31,000 after acquiring an additional 4,599 shares during the period. EverSource Wealth Advisors LLC raised its stake in shares of PagerDuty by 419.3% during the 1st quarter. EverSource Wealth Advisors LLC now owns 5,136 shares of the company's stock worth $32,000 after buying an additional 4,147 shares in the last quarter. Optiver Holding B.V. raised its position in PagerDuty by 5,699.0% in the first quarter. Optiver Holding B.V. now owns 6,031 shares of the company's stock worth $37,000 after acquiring an additional 5,927 shares in the last quarter. Finally, KBC Group NV lifted its stake in shares of PagerDuty by 89.5% in 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 during the period. 97.26% of the stock is owned by hedge funds and other institutional investors.

PagerDuty Company 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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