Bank of America has begun coverage of PagerDuty (NYSE: PD), establishing an underperform rating and setting a price target of $12.00 for the stock. This announcement was made in a research report distributed to investors on the morning of November 25, 2023. The bank’s assessment follows a series of updates from various research analysts regarding the company.
Several other financial institutions have also adjusted their ratings on PagerDuty recently. On November 26, 2023, Morgan Stanley lowered its target price from $17.00 to $16.00, maintaining an “equal weight” rating. Similarly, on September 4, 2023, Robert W. Baird reduced its price objective from $18.00 to $16.00 while also issuing a “neutral” rating. Additionally, Weiss Ratings reaffirmed a “sell (e+)” rating on PagerDuty, while Truist Financial adjusted their target price from $23.00 to $20.00 with a “buy” rating on November 19, 2023. Royal Bank of Canada followed suit, reducing its target from $18.00 to $17.00 and maintaining an “outperform” rating.
As it stands, one equities research analyst has given PagerDuty a Strong Buy rating, while five analysts have issued Buy ratings. Another five have rated the company as Hold, and three analysts have recommended a Sell rating. According to data from MarketBeat, PagerDuty currently has an average consensus rating of “Hold” and an average price target of $17.18.
Recent Earnings Report and Future Guidance
PagerDuty last reported its quarterly earnings on November 25, 2023, revealing earnings per share (EPS) of $0.33, surpassing the consensus estimate of $0.24 by $0.09. The company achieved a net margin of 31.12% and a return on equity of 10.27%. Revenue for the quarter totaled $124.55 million, slightly below the consensus estimate of $124.92 million. Comparatively, during the same period last year, PagerDuty reported an EPS of $0.26. The revenue showed a year-over-year increase of 4.7%.
Looking ahead, PagerDuty has set guidance for the fiscal year 2026, projecting an EPS range of $1.110 to $1.120, alongside a Q4 2026 EPS forecast of $0.240 to $0.250. Analysts anticipate that PagerDuty will report an EPS of -0.27 for the current year.
Institutional Investor Activity
Recent activity among institutional investors indicates growing interest in PagerDuty. Headlands Technologies LLC significantly increased its position in the company by 2,235.6% during the first quarter, now holding 1,378 shares valued at approximately $25,000 after acquiring an additional 1,319 shares. EverSource Wealth Advisors LLC boosted its stake by 252.0% in the third quarter, now owning 1,605 shares valued at $27,000.
Other notable institutional investments include Summit Securities Group LLC, which purchased a new position during the first quarter worth about $33,000. Aster Capital Management DIFC Ltd and the State of Alaska Department of Revenue also acquired new positions in the company during the third quarter, valued at approximately $59,000 and $67,000, respectively. Overall, institutional investors hold approximately 97.26% of PagerDuty’s stock.
PagerDuty, Inc. operates a digital operations management platform that collects data and digital signals from software-enabled systems and devices. The company utilizes machine learning to analyze data, aiming to identify opportunities and issues in real-time. As analysts continue to evaluate PagerDuty’s performance and prospects, the upcoming earnings reports and investor activity will be closely monitored by stakeholders.
