PagerDuty (NYSE:PD) Shares Gap Down - What's Next?

Key Points

• PagerDuty shares opened lower, falling from a prior close of $12.25 to $11.75 before recovering slightly to about $12.15.
• Analyst sentiment remains mixed: the consensus rating is “Hold”, with an average price target of $12.12; Truist and TD Cowen maintained or issued Buy views, while other firms remain cautious.
• The company exceeded quarterly earnings and revenue expectations and authorized a $100 million share repurchase program, potentially allowing it to buy back up to 16.4% of outstanding shares.

PagerDuty (NYSE:PD - Get Free Report)'s share price gapped down before the market opened on Wednesday . The stock had previously closed at $12.25, but opened at $11.75. PagerDuty shares last traded at $12.1480, with a volume of 82,531 shares trading hands.

Analyst Ratings Changes

A number of analysts have commented on the company. Truist Financial lifted their price target on PagerDuty from $11.00 to $13.00 and gave the stock a "buy" rating in a research report on Thursday, August 20th. Royal Bank Of Canada raised their price objective on PagerDuty from $9.00 to $12.00 and gave the stock a "sector perform" rating in a research note on Friday, August 14th. Wall Street Zen downgraded PagerDuty from a "buy" rating to a "hold" rating in a report on Saturday, July 25th. TD Cowen reiterated a "buy" rating on shares of PagerDuty in a research report on Wednesday. Finally, Weiss Ratings upgraded shares of PagerDuty from a "sell (d+)" rating to a "hold (c-)" rating in a report on Friday. Three equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $12.12.

PagerDuty Trading Down 1.3%

The firm has a market capitalization of $932.77 million, a price-to-earnings ratio of 5.93, a P/E/G ratio of 3.18 and a beta of 0.93. The company has a debt-to-equity ratio of 1.83, a quick ratio of 1.95 and a current ratio of 1.95. The company has a 50 day moving average price of $10.42 and a two-hundred day moving average price of $8.34.

PagerDuty (NYSE:PD - Get Free Report) last released its quarterly earnings results on Thursday, May 28th. The company reported $0.32 earnings per share for the quarter, topping the consensus estimate of $0.24 by $0.08. PagerDuty had a net margin of 38.60% and a return on equity of 18.20%. The firm had revenue of $120.97 million during the quarter, compared to the consensus estimate of $119.52 million. During the same quarter in the prior year, the firm earned $0.24 EPS. The company's revenue for the quarter was up 1.0% on a year-over-year basis. 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 year.

PagerDuty announced that its Board of Directors has initiated a stock repurchase program 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 shares through open market purchases. Shares buyback programs are generally an indication that the company's leadership believes its stock is undervalued.

Hedge Funds Weigh In On PagerDuty

Several hedge funds and other institutional investors have recently modified their holdings of PD. Ameriprise Financial Inc. grew its stake in 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 acquiring an additional 1,115,577 shares in the last quarter. Dimensional Fund Advisors LP acquired a new stake in PagerDuty in the 1st quarter valued at about $6,074,000. Alyeska Investment Group L.P. purchased a new position in PagerDuty in the 3rd quarter worth approximately $13,710,000. Danske Bank A S purchased a new position in PagerDuty in the 3rd quarter worth approximately $13,271,000. Finally, Bank of New York Mellon Corp acquired a new position in shares of PagerDuty during the 2nd quarter worth approximately $7,629,000. 97.26% of the stock is owned by hedge funds and other institutional investors.

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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