PagerDuty (NYSE:PD) Receives Average Rating of "Hold" from Brokerages

Key Points

• PagerDuty’s stock currently has an average analyst rating of "Hold" from 11 brokerages, with a mix of sell, hold, and buy calls and an average 12-month price target of $11.50.
• The company recently reported better-than-expected quarterly results, posting EPS of $0.32 versus estimates of $0.24 and revenue of $120.97 million versus expectations of $119.52 million.
• PagerDuty’s board approved a $100 million share buyback, which would allow the company to repurchase up to 16.4% of its shares and may signal confidence that the stock is undervalued.

Shares of PagerDuty (NYSE:PD - Get Free Report) have earned an average rating of "Hold" from the eleven brokerages that are currently covering the company, Marketbeat.com reports. Two research analysts have rated the stock with a sell recommendation, six have issued a hold recommendation and three have assigned a buy recommendation to the company. The average twelve-month price target among brokerages that have updated their coverage on the stock in the last year is $11.50.

A number of equities analysts have recently weighed in on PD shares. Royal Bank Of Canada upped their price target on shares of PagerDuty from $8.00 to $9.00 and gave the stock a "sector perform" rating in a research note on Friday, May 29th. Canaccord Genuity Group boosted their target price on PagerDuty from $9.00 to $10.00 and gave the company a "buy" rating in a research note on Friday, May 29th. Truist Financial boosted their target price on PagerDuty from $9.00 to $11.00 and gave the company a "buy" rating in a research note on Thursday. Weiss Ratings reaffirmed a "sell (d)" rating on shares of PagerDuty in a research report on Friday, May 22nd. Finally, Wall Street Zen raised PagerDuty from a "hold" rating to a "buy" rating in a research note on Saturday, July 4th.

PagerDuty Stock Performance

PD stock opened at $10.31 on Monday. The firm has a 50 day simple moving average of $8.47 and a 200 day simple moving average of $8.51. PagerDuty has a 52 week low of $5.70 and a 52 week high of $18.00. The stock has a market cap of $795.49 million, a P/E ratio of 5.06, a P/E/G ratio of 2.65 and a beta of 0.94. The company has a debt-to-equity ratio of 1.83, a quick ratio of 1.95 and a current ratio of 1.95.

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

PagerDuty announced that its Board of Directors has approved a stock buyback plan on Thursday, May 28th that permits the company to repurchase $100.00 million in shares. This repurchase authorization permits the company to buy up to 16.4% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company's board believes its stock is undervalued.

Hedge Funds Weigh In On PagerDuty

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. grew its position in PagerDuty by 3.8% in the fourth 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 in the last quarter. Geode Capital Management LLC raised its holdings in shares of PagerDuty by 2.9% during the 4th quarter. Geode Capital Management LLC now owns 2,113,117 shares of the company's stock valued at $27,708,000 after purchasing an additional 58,881 shares in the last quarter. Ameriprise Financial Inc. raised its holdings in shares of PagerDuty by 333.2% during the 3rd quarter. Ameriprise Financial Inc. now owns 1,450,429 shares of the company's stock valued at $23,961,000 after purchasing an additional 1,115,577 shares in the last quarter. Loomis Sayles & Co. L P lifted its stake in shares of PagerDuty by 0.3% in the 4th quarter. Loomis Sayles & Co. L P now owns 1,092,963 shares of the company's stock valued at $14,329,000 after purchasing an additional 3,276 shares during the last quarter. Finally, Millennium Management LLC lifted its stake in shares of PagerDuty by 55.4% in the 1st quarter. Millennium Management LLC now owns 1,005,111 shares of the company's stock valued at $18,363,000 after purchasing an additional 358,347 shares during the last quarter. 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.

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