Formula Growth Ltd. Invests $1.21 Million in PagerDuty $PD

Formula Growth Ltd. acquired a new position in shares of PagerDuty (NYSE:PD) in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund acquired 125,000 shares of the company’s stock, valued at approximately $1,206,000.

A number of other institutional investors and hedge funds have also added to or reduced their stakes in PD. WealthCollab LLC acquired a new position in PagerDuty in the first quarter valued at about $25,000. PNC Financial Services Group Inc. boosted its holdings in PagerDuty by 1,219.9% during the first quarter. PNC Financial Services Group Inc. now owns 4,976 shares of the company’s stock worth $31,000 after buying an additional 4,599 shares during the last quarter. EverSource Wealth Advisors LLC boosted its holdings in PagerDuty by 419.3% during the first quarter. EverSource Wealth Advisors LLC now owns 5,136 shares of the company’s stock worth $32,000 after buying an additional 4,147 shares during the last quarter. Kestra Advisory Services LLC acquired a new position in shares of PagerDuty during the 4th quarter worth about $68,000. Finally, Optiver Holding B.V. grew 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 buying an additional 5,927 shares during the period. Institutional investors own 97.26% of the company’s stock.

PagerDuty Stock Up 3.8%

NYSE:PD opened at $12.66 on Friday. PagerDuty has a 1 year low of $5.70 and a 1 year high of $17.29. The stock has a 50-day moving average price of $10.57 and a two-hundred day moving average price of $8.40. The stock has a market cap of $976.26 million, a price-to-earnings ratio of 6.21, a PEG ratio of 3.13 and a beta of 0.93. 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 released its quarterly earnings results on Thursday, August 27th. The company reported $0.32 EPS for the quarter, topping analysts’ consensus estimates of $0.31 by $0.01. PagerDuty had a return on equity of 18.20% and a net margin of 38.60%.The company had revenue of $124.44 million for the quarter, compared to analyst estimates of $123.27 million. During the same quarter last year, the firm posted $0.30 earnings per share. PagerDuty’s revenue was up .8% compared to the same quarter last year. PagerDuty has set its FY 2027 guidance at 1.330-1.370 EPS and its Q3 2027 guidance at 0.340-0.360 EPS. As a group, equities analysts expect that PagerDuty will post 0.58 earnings per share for the current year.

PagerDuty declared that its Board of Directors has authorized a share buyback plan on Thursday, May 28th that authorizes the company to repurchase $100.00 million in outstanding shares. This repurchase authorization authorizes the company to buy up to 16.4% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company’s board believes its stock is undervalued.

Trending Headlines about PagerDuty

Here are the key news stories impacting PagerDuty this week:

• Positive Sentiment: Q2 results exceeded expectations: PagerDuty reported adjusted earnings of $0.32 per share, above consensus estimates of $0.30–$0.31 and matching the prior-year result. Revenue reached $124.44 million, ahead of the roughly $123.27 million consensus estimate. PagerDuty Announces Second Quarter Fiscal 2027 Financial Results
• Positive Sentiment: Profit guidance was raised above analyst expectations: Third-quarter fiscal 2027 EPS guidance of $0.34–$0.36 is above the $0.31 consensus estimate. Full-year EPS guidance of $1.33–$1.37 also exceeds the $1.17 consensus, signaling improved margin and cost discipline. PagerDuty Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Cash generation and recurring revenue reached notable milestones: Management said annual recurring revenue surpassed $500 million and free cash flow totaled $33 million, supporting the company’s focus on sustainable, profitable growth. PagerDuty Announces Second Quarter Fiscal 2027 Financial Results
• Positive Sentiment: Analyst sentiment improved: TD Cowen maintained a Buy rating and raised its price target to $13.50 from $10, citing progress with PagerDuty’s usage-based model and an attractive valuation. PagerDuty Analyst Reaffirms Buy Rating and Raises Price Target
• Neutral Sentiment: Revenue expectations remain restrained: Third-quarter revenue guidance of $123 million–$125 million is broadly in line with the $124.2 million consensus, while full-year guidance of $491.5 million–$496.5 million is only modestly above the $493.2 million consensus midpoint.
• Negative Sentiment: Restructuring introduces execution risk: PagerDuty announced a restructuring while emphasizing profitable growth. Although the actions may improve efficiency, restructuring costs and potential disruption could weigh on near-term operations. PagerDuty Announces Restructuring Amid Focus on Profitable Growth

Analyst Ratings Changes

A number of brokerages have recently commented on PD. Canaccord Genuity Group upped their price target on PagerDuty from $9.00 to $10.00 and gave the company a “buy” rating in a research note on Friday, May 29th. Wall Street Zen lowered shares of PagerDuty from a “buy” rating to a “hold” rating in a research note on Saturday, July 25th. UBS Group set a $13.50 price objective on shares of PagerDuty in a report on Wednesday. Morgan Stanley downgraded shares of PagerDuty from an “equal weight” rating to an “underweight” rating and lowered their target price for the company from $10.00 to $9.00 in a research note on Tuesday, July 21st. Finally, Truist Financial increased their target price on shares of PagerDuty from $11.00 to $13.00 and gave the stock a “buy” rating in a report on Thursday, August 20th. Three research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $12.28.

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.