PagerDuty (NYSE:PD) Shares Gap Down – Time to Sell?

PagerDuty (NYSE:PD)’s stock price gapped down prior to trading on Tuesday . The stock had previously closed at $10.84, but opened at $10.11. PagerDuty shares last traded at $10.8290, with a volume of 161,661 shares changing hands.

Analyst Upgrades and Downgrades

PD has been the subject of a number of analyst reports. Wall Street Zen raised shares of PagerDuty from a “hold” rating to a “buy” rating in a research note on Saturday, July 4th. Weiss Ratings restated a “sell (d)” rating on shares of PagerDuty in a research note on Friday, May 22nd. Canaccord Genuity Group lifted their price target on PagerDuty from $9.00 to $10.00 and gave the company a “buy” rating in a report on Friday, May 29th. Royal Bank Of Canada lifted their price target on PagerDuty from $8.00 to $9.00 and gave the company a “sector perform” rating in a report on Friday, May 29th. Finally, Truist Financial boosted their price objective on PagerDuty from $9.00 to $11.00 and gave the stock a “buy” rating in a research report on Thursday, July 9th. Three investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $11.50.

PagerDuty Stock Up 2.7%

The firm has a market cap of $858.73 million, a price-to-earnings ratio of 5.46, a P/E/G ratio of 2.65 and a beta of 0.94. The firm’s fifty day moving average is $8.56 and its two-hundred day moving average is $8.50. The company has a debt-to-equity ratio of 1.83, a current ratio of 1.95 and a quick ratio of 1.95.

PagerDuty (NYSE:PD) last announced its earnings results 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 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%. PagerDuty’s revenue was up 1.0% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.24 EPS. PagerDuty has set its Q2 2027 guidance at 0.290-0.310 EPS. On average, sell-side analysts expect that PagerDuty will post 0.58 EPS for the current fiscal year.

PagerDuty announced that its Board of Directors has authorized a share repurchase program on Thursday, May 28th that authorizes the company to repurchase $100.00 million in shares. This repurchase authorization authorizes the company to repurchase up to 16.4% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company’s management believes its stock is undervalued.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Vanguard Group Inc. lifted its position 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 purchasing an additional 472,975 shares during the period. Y Intercept Hong Kong Ltd increased its position in shares of 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 shares of 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. State of Wyoming raised its stake in shares of PagerDuty by 82.7% in the 4th quarter. State of Wyoming now owns 54,780 shares of the company’s stock worth $718,000 after buying an additional 24,799 shares in the last quarter. Finally, ProShare Advisors LLC raised its stake in shares of PagerDuty by 11.8% in the 4th quarter. ProShare Advisors LLC now owns 16,324 shares of the company’s stock worth $214,000 after buying an additional 1,720 shares in the last quarter. 97.26% of the stock is currently owned by institutional investors.

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.