PagerDuty (NYSE:PD) Shares Up 5.9% - What's Next?

Key Points

• PagerDuty shares rose 5.9% in midday trading, reaching as high as $10.86 after closing at $10.33 the prior session. Trading volume was well below average, with about 340,110 shares changing hands.
• Recent analyst actions were mixed but leaned constructive: Truist Financial and Canaccord Genuity both raised price targets and kept buy ratings, while the broader consensus remains Hold with an average target price of $11.50.
• The company’s latest earnings beat expectations, with EPS of $0.32 versus a $0.24 estimate and revenue of $120.97 million slightly above forecasts. PagerDuty also announced a $100 million share repurchase program, signaling management believes the stock may be undervalued.

PagerDuty (NYSE:PD - Get Free Report) shares rose 5.9% during mid-day trading on Monday . The company traded as high as $10.86 and last traded at $10.9350. Approximately 340,110 shares were traded during mid-day trading, a decline of 88% from the average session volume of 2,729,209 shares. The stock had previously closed at $10.33.

Wall Street Analyst Weigh In

PD has been the subject of a number of recent research reports. Truist Financial boosted their target price on PagerDuty from $9.00 to $11.00 and gave the stock a "buy" rating in a research report on Thursday. Wall Street Zen raised shares of PagerDuty from a "hold" rating to a "buy" rating in a research note on Saturday, July 4th. Canaccord Genuity Group lifted their target price on shares of PagerDuty from $9.00 to $10.00 and gave the stock a "buy" rating in a research report on Friday, May 29th. Weiss Ratings restated a "sell (d)" rating on shares of PagerDuty in a research report on Friday, May 22nd. Finally, Royal Bank Of Canada raised their price objective on PagerDuty from $8.00 to $9.00 and gave the company a "sector perform" rating in a research note on Friday, May 29th. Three investment analysts have rated the stock with a Buy rating, six have given a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus target price of $11.50.

PagerDuty Stock Up 4.8%

The company has a market capitalization of $834.98 million, a P/E ratio of 5.31, a price-to-earnings-growth ratio of 2.65 and a beta of 0.94. The company has a current ratio of 1.95, a quick ratio of 1.95 and a debt-to-equity ratio of 1.83. The stock's fifty day moving average is $8.47 and its 200 day moving average is $8.51.

PagerDuty (NYSE:PD - Get Free Report) last released its quarterly earnings data on Thursday, May 28th. The company reported $0.32 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.24 by $0.08. The firm had revenue of $120.97 million for the quarter, compared to analysts' expectations 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 previous year, the company earned $0.24 earnings per share. PagerDuty has set its Q2 2027 guidance at 0.290-0.310 EPS. Research analysts predict that PagerDuty will post 0.58 EPS for the current fiscal year.

PagerDuty declared that its Board of Directors has initiated a share repurchase plan on Thursday, May 28th that allows the company to buyback $100.00 million in outstanding shares. This buyback authorization allows the company to reacquire up to 16.4% of its stock through open market purchases. Stock buyback plans are often an indication that the company's board of directors believes its shares are undervalued.

Institutional Investors Weigh In On PagerDuty

Institutional investors and hedge funds have recently bought and sold shares of the business. Vanguard Group Inc. lifted its stake 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 during the period. Y Intercept Hong Kong Ltd increased its position in PagerDuty by 801.4% during the 1st quarter. Y Intercept Hong Kong Ltd now owns 206,701 shares of the company's stock valued at $1,284,000 after purchasing an additional 183,770 shares during the period. ArrowMark Colorado Holdings LLC increased its position in PagerDuty by 18.2% during the 3rd quarter. ArrowMark Colorado Holdings LLC now owns 659,565 shares of the company's stock valued at $10,896,000 after purchasing an additional 101,677 shares during the period. DGS Capital Management LLC bought a new position in PagerDuty in the 1st quarter worth $212,000. Finally, Alpine Global Management LLC bought a new position in PagerDuty in the 4th quarter worth $179,000. Hedge funds and other 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. 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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