PagerDuty (NYSE:PD) Price Target Raised to $10.00

Key Points

• Canaccord Genuity raised PagerDuty’s price target to $10 from $9 and kept a buy rating, implying only modest upside from the stock’s prior close.
• PagerDuty shares surged 32.6% to $9.86 on heavy volume after the company reported better-than-expected quarterly results, including $0.32 EPS on $120.97 million in revenue.
• The company also authorized a $100 million stock buyback, which management may view as a sign the shares are undervalued; however, analyst sentiment remains mixed with a consensus Hold rating and average target of $12.

PagerDuty (NYSE:PD - Get Free Report) had its price objective hoisted by investment analysts at Canaccord Genuity Group from $9.00 to $10.00 in a research report issued on Friday,Benzinga reports. The brokerage presently has a "buy" rating on the stock. Canaccord Genuity Group's price objective points to a potential upside of 1.40% from the company's previous close.

PD has been the subject of several other research reports. TD Cowen lowered their price objective on PagerDuty from $20.00 to $10.00 and set a "buy" rating for the company in a research report on Friday, March 13th. Wall Street Zen downgraded PagerDuty from a "buy" rating to a "hold" rating in a research report on Monday. William Blair reiterated a "market perform" rating on shares of PagerDuty in a research report on Friday, March 13th. Royal Bank Of Canada upped their target price on PagerDuty from $8.00 to $9.00 and gave the company a "sector perform" rating in a report on Friday. Finally, Weiss Ratings restated a "sell (d)" rating on shares of PagerDuty in a report on Friday, May 22nd. Three analysts have rated the stock with a Buy rating, six have issued a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat.com, PagerDuty currently has a consensus rating of "Hold" and an average price target of $12.00.

PagerDuty Trading Up 32.6%

PD stock traded up $2.42 during midday trading on Friday, hitting $9.86. The company had a trading volume of 5,773,728 shares, compared to its average volume of 2,880,618. The company has a current ratio of 2.01, a quick ratio of 2.01 and a debt-to-equity ratio of 1.56. PagerDuty has a 52 week low of $5.70 and a 52 week high of $18.00. The stock's 50 day moving average price is $6.66 and its 200 day moving average price is $9.43. The stock has a market cap of $838.17 million, a price-to-earnings ratio of 5.33, a PEG ratio of 3.19 and a beta of 0.78.

PagerDuty (NYSE:PD - Get Free Report) last announced its quarterly earnings data on Thursday, May 28th. The company reported $0.32 earnings per share for the quarter, beating the consensus estimate of $0.24 by $0.08. PagerDuty had a return on equity of 16.29% and a net margin of 35.30%.The firm had revenue of $120.97 million during the quarter, compared to the consensus estimate of $119.52 million. During the same quarter in the previous year, the company posted $0.24 earnings per share. The business's revenue was up 1.0% on a year-over-year basis. PagerDuty has set its Q2 2027 guidance at 0.290-0.310 EPS. As a group, equities research analysts expect that PagerDuty will post 0.34 earnings per share for the current fiscal year.

PagerDuty declared that its board has authorized a stock repurchase plan on Thursday, May 28th that permits the company to repurchase $100.00 million in outstanding shares. This repurchase authorization permits the company to buy up to 16.4% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company's board of directors believes its stock is undervalued.

Hedge Funds Weigh In On PagerDuty

Several hedge funds and other institutional investors have recently made changes to their positions in PD. EverSource Wealth Advisors LLC lifted its position in 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 buying an additional 1,149 shares in the last quarter. Aster Capital Management DIFC Ltd purchased a new position in PagerDuty during the third quarter worth approximately $59,000. WealthCollab LLC purchased a new position in PagerDuty during the first quarter worth approximately $25,000. KBC Group NV raised its position in 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. Finally, PNC Financial Services Group Inc. boosted its holdings in PagerDuty by 1,219.9% in 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. Hedge funds and other institutional investors own 97.26% of the company's stock.

Key PagerDuty News

Here are the key news stories impacting PagerDuty this week:

• Positive Sentiment: PagerDuty beat Q1 expectations, reporting $0.32 in EPS on $120.97 million in revenue, both above estimates, which suggests the company is still generating better-than-expected profitability despite sluggish growth. Article: PagerDuty (PD) Tops Q1 Earnings and Revenue Estimates
• Positive Sentiment: The company authorized a new $100 million buyback, a sign management believes the shares are undervalued and a move that could reduce share count and boost per-share metrics. Article: PagerDuty Board Authorizes Share Buyback Program
• Positive Sentiment: PagerDuty also raised second-quarter guidance above Wall Street expectations, with EPS and revenue outlook both slightly ahead of consensus, reinforcing confidence in near-term execution. Article: PagerDuty Announces First Quarter Fiscal 2027 Financial Results
• Neutral Sentiment: Longer-term operating trends remain mixed, with revenue growth below 1%, flat ARR, declining large-customer counts, and DBNRR slipping below 100%, indicating the business is still struggling to reaccelerate growth. Article: PagerDuty Q1 Earnings: Still Struggling
• Negative Sentiment: Some commentary around the results highlighted weaker operating profit and net income trends, which may temper enthusiasm if investors focus more on the durability of growth than on the earnings beat. Article: PagerDuty (PD) Stock Falls on Q1 2027 Earnings

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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