PagerDuty (NYSE:PD) Shares Up 5.9% – Still a Buy?

PagerDuty (NYSE:PD) shares traded up 5.9% during mid-day trading on Monday . The stock 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.

Analysts Set New Price Targets

Several analysts have commented on the stock. Canaccord Genuity Group raised their target price on shares of PagerDuty from $9.00 to $10.00 and gave the stock a “buy” rating in a report on Friday, May 29th. Weiss Ratings upgraded shares of PagerDuty from a “sell (d)” rating to a “sell (d+)” rating in a report on Monday. Wall Street Zen raised shares of PagerDuty from a “hold” rating to a “buy” rating in a research report on Saturday, July 4th. Truist Financial increased their price objective on shares of PagerDuty from $9.00 to $11.00 and gave the stock a “buy” rating in a research report on Thursday, July 9th. Finally, Royal Bank Of Canada raised their price objective on shares of PagerDuty from $8.00 to $9.00 and gave the stock a “sector perform” rating in a report on Friday, May 29th. 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 stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $11.50.

PagerDuty Stock Up 1.8%

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 firm’s 50 day simple moving average is $8.63 and its 200-day simple moving average is $8.48. The stock has a market capitalization of $851.10 million, a price-to-earnings ratio of 5.41, a price-to-earnings-growth ratio of 2.78 and a beta of 0.94.

PagerDuty (NYSE:PD) last issued its quarterly earnings results on Thursday, May 28th. The company reported $0.32 EPS for the quarter, topping the consensus estimate 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% on a year-over-year basis. During the same period in the previous year, the firm posted $0.24 EPS. PagerDuty has set its Q2 2027 guidance at 0.290-0.310 EPS. Equities analysts expect that PagerDuty will post 0.58 earnings per share for the current fiscal year.

PagerDuty declared that its Board of Directors has approved a stock repurchase plan 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 plans are usually a sign that the company’s board believes its stock is undervalued.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of PD. Ameriprise Financial Inc. increased its stake in shares of PagerDuty by 333.2% during the 3rd quarter. Ameriprise Financial Inc. now owns 1,450,429 shares of the company’s stock worth $23,961,000 after purchasing an additional 1,115,577 shares during 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. acquired a new stake in PagerDuty in the 3rd quarter valued at about $13,710,000. Danske Bank A S acquired a new stake in PagerDuty in the 3rd quarter valued at about $13,271,000. Finally, Jacobs Levy Equity Management Inc. bought a new position in PagerDuty during the fourth quarter worth about $9,910,000. 97.26% of the stock is currently owned by 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.