PagerDuty (NYSE:PD) Downgraded to Hold Rating by Wall Street Zen

PagerDuty (NYSE:PD) was downgraded by investment analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a research report issued on Saturday.

Several other brokerages have also issued reports on PD. Truist Financial dropped their target price on PagerDuty from $12.00 to $9.00 and set a “buy” rating for the company in a research report on Friday. William Blair reiterated a “market perform” rating on shares of PagerDuty in a report on Friday. Craig Hallum lowered PagerDuty from a “buy” rating to a “hold” rating and decreased their price target for the stock from $20.00 to $15.00 in a research note on Wednesday, November 26th. Weiss Ratings restated a “sell (d+)” rating on shares of PagerDuty in a report on Monday, December 29th. Finally, Bank of America started coverage on PagerDuty in a research report on Tuesday, December 2nd. They issued an “underperform” rating and a $12.00 price objective on the stock. Three analysts have rated the stock with a Buy rating, seven have issued a Hold rating and three have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, PagerDuty has a consensus rating of “Hold” and a consensus price target of $12.40.

PagerDuty Trading Down 3.0%

Shares of PD opened at $7.05 on Friday. The company’s fifty day simple moving average is $9.08 and its 200-day simple moving average is $12.94. The company has a market cap of $646.96 million, a P/E ratio of 3.83, a P/E/G ratio of 1.82 and a beta of 0.73. The company has a current ratio of 2.37, a quick ratio of 2.37 and a debt-to-equity ratio of 1.23. PagerDuty has a twelve month low of $6.15 and a twelve month high of $19.70.

PagerDuty (NYSE:PD) last released its quarterly earnings results on Thursday, March 12th. The company reported $0.29 EPS for the quarter, topping analysts’ consensus estimates of $0.24 by $0.05. The firm had revenue of $124.79 million during the quarter, compared to analysts’ expectations of $122.96 million. PagerDuty had a net margin of 35.30% and a return on equity of 17.01%. The firm’s revenue for the quarter was up 2.7% compared to the same quarter last year. During the same period in the previous year, the company earned $0.22 EPS. 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, analysts expect that PagerDuty will post -0.27 EPS for the current year.

Insider Activity at PagerDuty

In other news, Director Dan Alexandru Solomon sold 266,667 shares of the firm’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 transaction, the director directly owned 2,389,665 shares of the company’s stock, valued at approximately $31,902,027.75. This trade represents a 10.04% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Company insiders own 8.00% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the company. IQ EQ FUND MANAGEMENT IRELAND Ltd raised its position in PagerDuty by 78.3% during the 3rd quarter. IQ EQ FUND MANAGEMENT IRELAND Ltd now owns 323,951 shares of the company’s stock valued at $5,352,000 after purchasing an additional 142,232 shares in the last quarter. ARK Investment Management LLC grew its position in shares of PagerDuty by 2.6% during the 3rd quarter. ARK Investment Management LLC now owns 8,827,404 shares of the company’s stock worth $145,829,000 after buying an additional 224,769 shares in the last quarter. Vanguard Group Inc. increased its stake in shares of PagerDuty by 17.1% during the third quarter. Vanguard Group Inc. now owns 12,593,954 shares of the company’s stock valued at $208,052,000 after buying an additional 1,840,407 shares during the period. SG Americas Securities LLC purchased a new position in shares of PagerDuty during the third quarter valued at $4,312,000. Finally, Readystate Asset Management LP bought a new stake in shares of PagerDuty in the third quarter valued at about $15,946,000. Institutional investors own 97.26% of the company’s stock.

Trending Headlines about 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)

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.