PagerDuty (NYSE:PD) Sees Unusually-High Trading Volume - Should You 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.

Shares of PagerDuty (NYSE:PD - Get Free Report) saw unusually-high 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.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on PD shares. TD Cowen raised PagerDuty from a "hold" rating to a "buy" rating and set a $22.00 price target for the company in a report on Monday. Royal Bank Of Canada lowered their price target on PagerDuty from $22.00 to $20.00 and set an "outperform" rating for the company in a report on Friday, May 30th. TD Securities lowered their price target on PagerDuty from $19.00 to $18.00 and set a "hold" rating for the company in a report on Wednesday, May 21st. Truist Financial lowered their price target on PagerDuty from $26.00 to $23.00 and set a "buy" rating for the company in a report on Friday, May 30th. Finally, Morgan Stanley lowered their price target on PagerDuty from $20.00 to $17.00 and set an "equal weight" rating for the company in a report on Wednesday, April 16th. Two research analysts have rated the stock with a sell rating, five have given a hold rating and six have issued a buy rating to the company. According to data from MarketBeat, the company presently has an average rating of "Hold" and an average price target of $19.75.

PagerDuty Trading Down 2.1%

The company has a current ratio of 2.02, a quick ratio of 2.02 and a debt-to-equity ratio of 2.70. The firm has a 50-day moving average of $15.24 and a 200 day moving average of $16.63. The company has a market cap of $1.50 billion, a P/E ratio of -41.21, a price-to-earnings-growth ratio of 10.10 and a beta of 0.89.

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

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in PD. Nuveen LLC bought a new position in PagerDuty in the first quarter worth approximately $13,018,000. Marshall Wace LLP boosted its holdings in PagerDuty by 989.0% in the fourth quarter. Marshall Wace LLP now owns 721,953 shares of the company's stock worth $13,183,000 after acquiring an additional 655,655 shares in the last quarter. RGM Capital LLC boosted its holdings in PagerDuty by 12.6% in the first quarter. RGM Capital LLC now owns 5,649,592 shares of the company's stock worth $103,218,000 after acquiring an additional 634,131 shares in the last quarter. Two Sigma Investments LP boosted its holdings in PagerDuty by 1,222.8% in the fourth quarter. Two Sigma Investments LP now owns 431,252 shares of the company's stock worth $7,875,000 after acquiring an additional 398,650 shares in the last quarter. Finally, Two Sigma Advisers LP bought a new position in PagerDuty in the fourth quarter worth approximately $6,734,000. Institutional investors own 97.26% of the company's stock.

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.