PagerDuty (NYSE:PD) Shares Gap Down - Should You Sell?

Key Points

• PagerDuty shares gapped down on Tuesday, opening at $9.75 after closing at $10.34 and last trading around $9.55.
• Recent analyst sentiment is mixed, with the stock carrying a consensus Hold rating and an average price target of $11.50, though several firms recently raised their targets and ratings.
• The company beat last quarter’s earnings expectations, reported a $100 million share buyback authorization, and continues to show strong institutional ownership at 97.26%.

Shares of PagerDuty (NYSE:PD - Get Free Report) gapped down prior to trading on Tuesday . The stock had previously closed at $10.34, but opened at $9.75. PagerDuty shares last traded at $9.5480, with a volume of 302,576 shares trading hands.

Analyst Ratings Changes

Several equities research analysts recently issued reports on the stock. Royal Bank Of Canada lifted 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 upped their price objective on shares of PagerDuty from $9.00 to $10.00 and gave the company a "buy" rating in a research report on Friday, May 29th. Truist Financial raised their target price on PagerDuty from $9.00 to $11.00 and gave the company a "buy" rating in a research note on Thursday, July 9th. Wall Street Zen raised PagerDuty from a "hold" rating to a "buy" rating in a research report on Saturday, July 4th. Finally, Weiss Ratings raised PagerDuty from a "sell (d)" rating to a "sell (d+)" rating in a research report on Monday, July 13th. Three investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $11.50.

PagerDuty Price Performance

The company has a debt-to-equity ratio of 1.83, a current ratio of 1.95 and a quick ratio of 1.95. The firm has a market cap of $738.42 million, a price-to-earnings ratio of 4.69, a P/E/G ratio of 2.64 and a beta of 0.94. The business's 50-day moving average price is $8.91 and its two-hundred day moving average price is $8.41.

PagerDuty (NYSE:PD - Get Free Report) last issued its quarterly earnings results on Thursday, May 28th. The company reported $0.32 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.24 by $0.08. The business had revenue of $120.97 million during 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 business's revenue was up 1.0% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.24 earnings per share. PagerDuty has set its Q2 2027 guidance at 0.290-0.310 EPS. On average, research analysts forecast that PagerDuty will post 0.58 EPS for the current fiscal year.

PagerDuty declared that its Board of Directors has authorized a stock buyback program on Thursday, May 28th that authorizes the company to buyback $100.00 million in shares. This buyback authorization authorizes the company to purchase up to 16.4% of its shares through open market purchases. Shares buyback programs are generally an indication that the company's board of directors believes its shares are undervalued.

Institutional Investors Weigh In On PagerDuty

A number of institutional investors have recently modified their holdings of PD. Pacer Advisors Inc. lifted its position in shares of PagerDuty by 73.9% during the first quarter. Pacer Advisors Inc. now owns 569,907 shares of the company's stock worth $3,539,000 after purchasing an additional 242,100 shares during the last quarter. Optiver Holding B.V. raised its stake in PagerDuty by 5,699.0% during the first quarter. Optiver Holding B.V. now owns 6,031 shares of the company's stock valued at $37,000 after buying an additional 5,927 shares in the last quarter. Glenmede Trust Co. NA lifted its holdings in PagerDuty by 35.7% during the 1st quarter. Glenmede Trust Co. NA now owns 937,505 shares of the company's stock worth $5,822,000 after buying an additional 246,482 shares during the last quarter. Segall Bryant & Hamill LLC lifted its holdings in PagerDuty by 519.6% during the 1st quarter. Segall Bryant & Hamill LLC now owns 223,995 shares of the company's stock worth $1,391,000 after buying an additional 187,845 shares during the last quarter. Finally, Amundi lifted its holdings in PagerDuty by 47.3% during the 1st quarter. Amundi now owns 47,750 shares of the company's stock worth $297,000 after buying an additional 15,331 shares during the last quarter. Institutional investors and hedge funds 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. 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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