PagerDuty (NYSE:PD) Shares Gap Down – Here’s What Happened

PagerDuty (NYSE:PD) shares 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.

Wall Street Analyst Weigh In

PD has been the subject of a number of recent analyst reports. Truist Financial raised their price target 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. Wall Street Zen raised shares of PagerDuty from a “hold” rating to a “buy” rating in a report on Saturday, July 4th. Royal Bank Of Canada increased their price objective on shares of PagerDuty from $8.00 to $9.00 and gave the company a “sector perform” rating in a research note on Friday, May 29th. Weiss Ratings reissued a “sell (d)” rating on shares of PagerDuty in a report on Friday, May 22nd. Finally, Canaccord Genuity Group boosted 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. Three equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $11.50.

PagerDuty Trading Up 2.7%

The firm has a market cap of $858.73 million, a P/E ratio of 5.46, a P/E/G ratio of 2.65 and a beta of 0.94. The business’s 50-day moving average is $8.56 and its two-hundred day moving average is $8.50. The company has a current ratio of 1.95, a quick ratio of 1.95 and a debt-to-equity ratio of 1.83.

PagerDuty (NYSE:PD) last issued its earnings results on Thursday, May 28th. The company reported $0.32 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates 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 for the quarter, compared to analysts’ expectations of $119.52 million. During the same quarter last year, the company posted $0.24 earnings per share. PagerDuty’s revenue was up 1.0% on a year-over-year basis. PagerDuty has set its Q2 2027 guidance at 0.290-0.310 EPS. As a group, analysts expect that PagerDuty will post 0.58 earnings per share for the current fiscal year.

PagerDuty announced that its Board of Directors has initiated a stock repurchase program on Thursday, May 28th that authorizes the company to repurchase $100.00 million in outstanding shares. This repurchase authorization authorizes the company to reacquire 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

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Ameriprise Financial Inc. increased its position in PagerDuty by 333.2% in the third quarter. Ameriprise Financial Inc. now owns 1,450,429 shares of the company’s stock worth $23,961,000 after buying an additional 1,115,577 shares during the period. Dimensional Fund Advisors LP acquired a new position in shares of PagerDuty during the first quarter valued at $6,074,000. Alyeska Investment Group L.P. acquired a new position in shares of PagerDuty during the third quarter valued at $13,710,000. Danske Bank A S bought a new position in shares of PagerDuty during the third quarter worth about $13,271,000. Finally, Jacobs Levy Equity Management Inc. bought a new position in shares of PagerDuty during the fourth quarter worth about $9,910,000. Institutional investors and hedge funds 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.