PagerDuty (NYSE:PD) Shares Gap Down – Should You Sell?

PagerDuty (NYSE:PD)’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 traded.

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on PD shares. Weiss Ratings raised PagerDuty from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Friday. TD Cowen reiterated a “buy” rating on shares of PagerDuty in a report on Wednesday. Canaccord Genuity Group boosted their price target on shares of PagerDuty from $9.00 to $10.00 and gave the company a “buy” rating in a research report on Friday, May 29th. Royal Bank Of Canada upped their price objective on shares of PagerDuty from $9.00 to $12.00 and gave the company a “sector perform” rating in a report on Friday, August 14th. Finally, Morgan Stanley cut shares of PagerDuty from an “equal weight” rating to an “underweight” rating and cut their price objective for the stock from $10.00 to $9.00 in a research report on Tuesday, July 21st. Three equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, PagerDuty presently has a consensus rating of “Hold” and an average target price of $12.12.

PagerDuty Stock Down 1.3%

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

PagerDuty (NYSE:PD) last posted its earnings results on Thursday, May 28th. The company reported $0.32 EPS for the quarter, beating analysts’ consensus estimates of $0.24 by $0.08. PagerDuty had a return on equity of 18.20% and a net margin of 38.60%.The company had revenue of $120.97 million for the quarter, compared to the consensus estimate of $119.52 million. During the same quarter in the previous year, the business earned $0.24 earnings per share. 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. Equities research analysts predict that PagerDuty will post 0.58 earnings per share for the current fiscal year.

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

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of PD. WealthCollab LLC purchased a new position in PagerDuty during the first quarter worth about $25,000. PNC Financial Services Group Inc. lifted its holdings in shares of PagerDuty by 1,219.9% in the 1st quarter. PNC Financial Services Group Inc. now owns 4,976 shares of the company’s stock worth $31,000 after acquiring an additional 4,599 shares during the last quarter. EverSource Wealth Advisors LLC lifted its holdings in shares of PagerDuty by 419.3% in the 1st quarter. EverSource Wealth Advisors LLC now owns 5,136 shares of the company’s stock worth $32,000 after acquiring an additional 4,147 shares during the last quarter. Optiver Holding B.V. boosted its position in shares of PagerDuty by 5,699.0% during the 1st quarter. Optiver Holding B.V. now owns 6,031 shares of the company’s stock worth $37,000 after purchasing an additional 5,927 shares during the period. Finally, Kestra Advisory Services LLC purchased a new position in shares of PagerDuty during the 4th quarter worth approximately $68,000. 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.