PagerDuty (NYSE:PD) Hits New 1-Year Low Following Analyst Downgrade

PagerDuty (NYSE:PD) shares reached a new 52-week low on Friday after Wall Street Zen downgraded the stock from a buy rating to a hold rating. The company traded as low as $6.15 and last traded at $7.2360, with a volume of 1822272 shares changing hands. The stock had previously closed at $7.27.

Several other equities analysts also recently commented on PD. Royal Bank Of Canada dropped their price objective on shares of PagerDuty from $9.00 to $8.00 and set a “sector perform” rating for the company in a research note on Friday. Canaccord Genuity Group lowered their price target on shares of PagerDuty from $19.00 to $9.00 and set a “buy” rating for the company in a report on Friday. Weiss Ratings reiterated a “sell (d+)” rating on shares of PagerDuty in a research note on Monday, December 29th. Zacks Research downgraded PagerDuty from a “strong-buy” rating to a “hold” rating in a report on Monday, January 26th. Finally, Truist Financial reduced their price objective on PagerDuty from $12.00 to $9.00 and set a “buy” rating on the stock in a research report on Friday. Three investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat.com, PagerDuty currently has an average rating of “Hold” and an average target price of $12.40.

Insider Buying and Selling

In other PagerDuty news, Director Dan Alexandru Solomon sold 266,667 shares of the business’s stock in a transaction that occurred on Tuesday, December 30th. The shares were sold at an average price of $13.35, for a total transaction of $3,560,004.45. Following the sale, the director directly owned 2,389,665 shares of the company’s stock, valued at $31,902,027.75. The trade was a 10.04% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. 8.00% of the stock is currently owned by corporate insiders.

Key Stories Impacting PagerDuty

Here are the key news stories impacting PagerDuty this week:

• Positive Sentiment: Q4 EPS beat and margin progress — PagerDuty reported EPS above consensus and highlighted improved profitability and a full-year EPS guide that tops street estimates, supporting the company’s path to sustained GAAP profitability. PagerDuty Announces Fourth-Quarter and Full-Year Fiscal 2026 Financial Results
• Positive Sentiment: AI/product push — PagerDuty announced expansions to its AI ecosystem and a Spring 2026 platform release, which could drive product-led growth and higher enterprise stickiness if adoption accelerates. PagerDuty Expands AI Ecosystem
• Neutral Sentiment: Analyst support remains mixed — some shops (e.g., TD Cowen, Truist, Canaccord) have kept buy/positive stances even after lowering targets, indicating belief in longer-term upside despite near-term headwinds. TD Cowen/TipRanks Coverage
• Negative Sentiment: Revenue guidance and churn concerns — management guided Q1 and FY revenue below consensus ranges and discussed churn/usage headwinds, which directly hit growth expectations and investor confidence. PagerDuty’s Q4 Sales Beat But Stock Drops
• Negative Sentiment: Multiple price-target cuts and a downgrade — several firms trimmed targets (RBC to $8, TD Cowen to $10, Canaccord/Truist to $9) and William Blair downgraded the name after the quarter, amplifying selling pressure. William Blair Downgrade (Seeking Alpha) TD Cowen PT Cut (StreetInsider) RBC PT Cut (TickerReport)
• Negative Sentiment: Market reaction — shares fell sharply after the print as investors punished the revenue guide and margin/cash-flow signs, reinforcing near-term downside risk. Stock Tumbles on Weak Outlook (Investing.com)

Institutional Trading of PagerDuty

Institutional investors have recently modified their holdings of the business. Alpine Global Management LLC acquired a new stake in PagerDuty in the fourth quarter valued at $179,000. Pacer Advisors Inc. lifted its holdings in PagerDuty by 11.7% during the 4th quarter. Pacer Advisors Inc. now owns 327,807 shares of the company’s stock worth $4,298,000 after buying an additional 34,363 shares during the period. Invesco Ltd. grew its position in shares of PagerDuty by 24.3% in the 4th quarter. Invesco Ltd. now owns 133,179 shares of the company’s stock valued at $1,746,000 after buying an additional 26,000 shares during the last quarter. EP Wealth Advisors LLC bought a new stake in shares of PagerDuty in the 4th quarter valued at about $191,000. Finally, XTX Topco Ltd increased its stake in shares of PagerDuty by 713.4% in the fourth quarter. XTX Topco Ltd now owns 223,095 shares of the company’s stock valued at $2,925,000 after buying an additional 195,667 shares during the period. Institutional investors own 97.26% of the company’s stock.

PagerDuty Trading Down 3.0%

The firm has a 50 day moving average price of $9.08 and a two-hundred day moving average price of $12.92. The company has a market cap of $646.94 million, a price-to-earnings ratio of 3.83, a PEG ratio of 1.77 and a beta of 0.73. The company has a quick ratio of 2.37, a current ratio of 2.37 and a debt-to-equity ratio of 1.23.

PagerDuty (NYSE:PD) last released its quarterly earnings data on Thursday, March 12th. The company reported $0.29 EPS for the quarter, beating the consensus estimate of $0.24 by $0.05. The business had revenue of $124.79 million for the quarter, compared to the consensus estimate of $122.96 million. PagerDuty had a net margin of 35.30% and a return on equity of 17.01%. The company’s revenue was up 2.7% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.22 earnings per share. PagerDuty has set its Q1 2027 guidance at 0.230-0.250 EPS and its FY 2027 guidance at 1.230-1.280 EPS. As a group, equities analysts forecast that PagerDuty will post -0.27 earnings per share for the current year.

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.