PagerDuty (NYSE:PD) Sees Large Volume Increase - Time to Buy?

Key Points

• PagerDuty saw a significant increase in trading volume of 142%, with approximately 2.99 million shares changing hands and the stock price rising to $16.13 from $14.71.
• Equities analysts have adjusted their price targets, with Canaccord Genuity dropping theirs from $23.00 to $21.00, and several others also lowering their expectations for the stock.
• Despite a negative net margin of 7.75%, PagerDuty reported an EPS of $0.24 for the last quarter, surpassing expectations and showing a revenue increase of 7.8% year-over-year.
• The consensus rating for PagerDuty is currently a "Hold" with a price target average of $19.50, indicating mixed opinions among analysts.

PagerDuty (NYSE:PD - Get Free Report) saw unusually-strong trading volume on Friday . Approximately 2,990,992 shares changed hands during trading, an increase of 142% from the previous session's volume of 1,238,139 shares.The stock last traded at $16.13 and had previously closed at $14.71.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on PD shares. Royal Bank Of Canada lowered their price objective on shares of PagerDuty from $22.00 to $20.00 and set an "outperform" rating on the stock in a research note on Friday, May 30th. TD Securities decreased their target price on shares of PagerDuty from $19.00 to $18.00 and set a "hold" rating on the stock in a research note on Wednesday, May 21st. Morgan Stanley decreased their target price on shares of PagerDuty from $20.00 to $17.00 and set an "equal weight" rating on the stock in a research note on Wednesday, April 16th. JPMorgan Chase & Co. decreased their target price on shares of PagerDuty from $21.00 to $18.00 and set an "underweight" rating on the stock in a research note on Friday, May 30th. Finally, Canaccord Genuity Group cut their price objective on shares of PagerDuty from $23.00 to $21.00 and set a "buy" rating for the company in a report on Monday, June 2nd. Two analysts have rated the stock with a sell rating, six have given a hold rating and four have issued a buy rating to the company's stock. According to MarketBeat, the company has an average rating of "Hold" and an average price target of $19.50.

PagerDuty Price Performance

The company has a quick ratio of 2.02, a current ratio of 2.02 and a debt-to-equity ratio of 2.70. The firm's 50 day simple moving average is $15.23 and its 200 day simple moving average is $16.64. The company has a market capitalization of $1.44 billion, a PE ratio of -39.39, a price-to-earnings-growth ratio of 9.43 and a beta of 0.89.

PagerDuty (NYSE:PD - Get Free Report) last posted its quarterly earnings data on Thursday, May 29th. The company reported $0.24 EPS for the quarter, topping the consensus estimate of $0.19 by $0.05. The company had revenue of $119.81 million during the quarter, compared to analyst estimates of $118.98 million. PagerDuty had a negative net margin of 7.75% and a negative return on equity of 8.73%. PagerDuty's quarterly revenue was up 7.8% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.17 earnings per share. As a group, research analysts anticipate that PagerDuty will post -0.27 EPS for the current fiscal year.

Institutional Trading of PagerDuty

Several institutional investors and hedge funds have recently made changes to their positions in PD. Headlands Technologies LLC increased its holdings in PagerDuty by 2,235.6% in the 1st quarter. Headlands Technologies LLC now owns 1,378 shares of the company's stock worth $25,000 after buying an additional 1,319 shares during the period. Summit Securities Group LLC purchased a new position in shares of PagerDuty during the 1st quarter valued at approximately $33,000. KBC Group NV purchased a new position in shares of PagerDuty during the 1st quarter valued at approximately $33,000. Point72 Asia Singapore Pte. Ltd. purchased a new position in shares of PagerDuty during the 4th quarter valued at approximately $130,000. Finally, Teacher Retirement System of Texas purchased a new position in shares of PagerDuty during the 1st quarter valued at approximately $229,000. 97.26% of the stock is currently owned by institutional investors.

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.