Wall Street Zen Downgrades PagerDuty (NYSE:PD) to Hold

Key Points

• Wall Street Zen downgraded PagerDuty from a buy to a hold, adding to a cautious analyst tone around the stock. Other firms have also trimmed ratings or price targets, leaving PagerDuty with an overall Hold consensus and an average target price of $12.40.
• PagerDuty beat earnings expectations in its latest quarter, reporting EPS of $0.29 versus the $0.24 estimate and revenue of $124.79 million, slightly above forecasts. Revenue was up 2.7% year over year, and the company also issued guidance for Q1 and FY 2027.
• The stock has been under pressure, trading at $7.33 with a market cap of about $622.6 million, well below its 52-week high of $18.00. Institutional ownership remains high at 97.26%, with several investors recently increasing positions.

PagerDuty (NYSE:PD - Get Free Report) was downgraded by Wall Street Zen from a "buy" rating to a "hold" rating in a report issued on Saturday.

A number of other analysts have also weighed in on the stock. Truist Financial cut their target price on shares of PagerDuty from $12.00 to $9.00 and set a "buy" rating on the stock in a research report on Friday, March 13th. Canaccord Genuity Group cut their price target on shares of PagerDuty from $19.00 to $9.00 and set a "buy" rating on the stock in a report on Friday, March 13th. William Blair reissued a "market perform" rating on shares of PagerDuty in a research note on Friday, March 13th. Zacks Research downgraded PagerDuty from a "strong-buy" rating to a "hold" rating in a report on Monday, January 26th. Finally, Royal Bank Of Canada lowered their target price on PagerDuty from $9.00 to $8.00 and set a "sector perform" rating for the company in a research report on Friday, March 13th. Three analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $12.40.

PagerDuty Stock Performance

Shares of PagerDuty stock opened at $7.33 on Friday. PagerDuty has a fifty-two week low of $5.70 and a fifty-two week high of $18.00. The company has a debt-to-equity ratio of 1.56, a current ratio of 2.01 and a quick ratio of 2.01. The firm has a market capitalization of $622.55 million, a P/E ratio of 3.98, a P/E/G ratio of 3.29 and a beta of 0.78. The company's 50 day moving average price is $6.75 and its two-hundred day moving average price is $10.36.

PagerDuty (NYSE:PD - Get Free Report) last issued its earnings results on Thursday, March 12th. The company reported $0.29 earnings per share for the quarter, beating analysts' consensus estimates of $0.24 by $0.05. PagerDuty had a net margin of 35.30% and a return on equity of 16.29%. The firm had revenue of $124.79 million for the quarter, compared to analyst estimates of $122.96 million. During the same quarter last year, the business posted $0.22 earnings per share. The company's quarterly revenue was up 2.7% on a year-over-year basis. PagerDuty has set its Q1 2027 guidance at 0.230-0.250 EPS and its FY 2027 guidance at 1.230-1.280 EPS. On average, equities analysts forecast that PagerDuty will post 0.34 earnings per share for the current fiscal year.

Institutional Investors Weigh In On PagerDuty

A number of institutional investors have recently made changes to their positions in the stock. EverSource Wealth Advisors LLC raised its stake in PagerDuty by 252.0% during the third quarter. EverSource Wealth Advisors LLC now owns 1,605 shares of the company's stock worth $27,000 after buying an additional 1,149 shares during the last quarter. PNC Financial Services Group Inc. raised its stake in PagerDuty by 1,219.9% during the first quarter. PNC Financial Services Group Inc. now owns 4,976 shares of the company's stock worth $31,000 after buying an additional 4,599 shares during the last quarter. KBC Group NV raised its stake in PagerDuty by 89.5% during the fourth quarter. KBC Group NV now owns 4,402 shares of the company's stock worth $58,000 after buying an additional 2,079 shares during the last quarter. Aster Capital Management DIFC Ltd bought a new position in PagerDuty during the third quarter worth $59,000. Finally, State of Alaska Department of Revenue bought a new position in PagerDuty during the third quarter worth $67,000. Institutional investors own 97.26% of the company's stock.

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. 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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