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

PagerDuty (NYSE:PD) hit a new 52-week low on Friday after TD Cowen lowered their price target on the stock from $20.00 to $10.00. TD Cowen currently has a buy rating on the stock. PagerDuty traded as low as $6.15 and last traded at $7.2360, with a volume of 1822272 shares trading hands. The stock had previously closed at $7.27.

Several other equities analysts have also recently commented on the company. Weiss Ratings reiterated a “sell (d+)” rating on shares of PagerDuty in a research note on Monday, December 29th. Morgan Stanley set a $9.00 price target on shares of PagerDuty in a research note on Thursday, February 19th. Royal Bank Of Canada reduced their price objective on shares of PagerDuty from $9.00 to $8.00 and set a “sector perform” rating on the stock in a research note on Friday. Zacks Research lowered shares of PagerDuty from a “strong-buy” rating to a “hold” rating in a report on Monday, January 26th. Finally, Craig Hallum downgraded shares of PagerDuty from a “buy” rating to a “hold” rating and dropped their target price for the stock from $20.00 to $15.00 in a research report on Wednesday, November 26th. Three investment analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $14.45.

Insider Buying and Selling

In other PagerDuty news, Director Dan Alexandru Solomon sold 266,667 shares of PagerDuty stock in a transaction on Tuesday, December 30th. The stock was sold at an average price of $13.35, for a total transaction of $3,560,004.45. Following the sale, the director 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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 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: EPS beat, margin expansion and ambitious EPS guidance — PagerDuty reported a Q4 EPS beat and highlighted FY2027 EPS guidance (1.23–1.28) well above consensus, and management flagged expanded non‑GAAP margins and the company’s first GAAP profitable year, supporting profitability re-rating. Zacks: PagerDuty Beats Q4
• Positive Sentiment: Analyst conviction on AI / usage-based upside — TD Cowen reiterated a Buy, citing the company’s usage‑based transition, early signs of growth reacceleration and underappreciated AI-driven upside that could lift long‑term multiples. TipRanks: TD Cowen Buy
• Positive Sentiment: Product/AI roadmap progress — PagerDuty expanded its AI ecosystem and rolled out Spring 2026 platform updates to support autonomous operations and AI agents, strengthening its strategic positioning in AI‑first operations. BusinessWire: AI Ecosystem Expansion
• Neutral Sentiment: Official results and materials are available — The company posted its Q4 press release, slide deck and call transcript for investors to review detailed metrics. These show mixed signals across top line, margins and cash flow. Quarterly Press Release / Slide Deck
• Negative Sentiment: Revenue guidance below Street — PagerDuty set FY2027 revenue guidance ($488.5M–$496.5M) and Q1 revenue guidance ($118M–$120M) below consensus, which outweighed the EPS beats and prompted investor concern about near‑term top‑line reacceleration. Investing.com: Stock Tumbles on Weak Revenue Outlook
• Negative Sentiment: Market focused on cash‑flow and metric inconsistencies — Third‑party summaries flagged weaker operating cash flow, lower cash on hand versus prior year and some profitability metric variability, amplifying the sell‑off after hours. QuiverQuant: Stock Falls, Cash‑Flow Notes
• Negative Sentiment: Shares reacted negatively after hours — Despite the mixed fundamental picture (EPS beat, margin progress, AI product wins), investors sold shares on the weaker revenue outlook, driving a notable post‑earnings decline. Yahoo Finance: Stock Drops After Q4

Institutional Trading of PagerDuty

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Alpine Global Management LLC acquired a new position in shares of PagerDuty during the fourth quarter valued at approximately $179,000. Pacer Advisors Inc. lifted its position in PagerDuty by 11.7% in the fourth quarter. Pacer Advisors Inc. now owns 327,807 shares of the company’s stock worth $4,298,000 after purchasing an additional 34,363 shares during the period. Invesco Ltd. boosted its stake in PagerDuty by 24.3% during the 4th quarter. Invesco Ltd. now owns 133,179 shares of the company’s stock valued at $1,746,000 after purchasing an additional 26,000 shares in the last quarter. EP Wealth Advisors LLC bought a new position in PagerDuty during the 4th quarter valued at $191,000. Finally, XTX Topco Ltd increased its position in shares of PagerDuty by 713.4% during the 4th quarter. XTX Topco Ltd now owns 223,095 shares of the company’s stock valued at $2,925,000 after purchasing an additional 195,667 shares during the period. 97.26% of the stock is currently owned by institutional investors.

PagerDuty Trading Up 0.1%

The company has a current ratio of 2.37, a quick ratio of 2.37 and a debt-to-equity ratio of 1.23. The firm has a 50-day moving average price of $9.19 and a 200-day moving average price of $13.00. The company has a market capitalization of $667.61 million, a price-to-earnings ratio of 4.54, a PEG ratio of 1.84 and a beta of 0.73.

PagerDuty (NYSE:PD) last announced its quarterly earnings data on Thursday, March 12th. The company reported $0.29 earnings per share for the quarter, beating the consensus estimate of $0.24 by $0.05. PagerDuty had a return on equity of 10.27% and a net margin of 31.12%.The business had revenue of $124.79 million during the quarter, compared to analyst estimates of $122.96 million. During the same quarter in the prior year, the firm posted $0.22 earnings per share. The company’s revenue was up 2.7% on a year-over-year basis. 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, sell-side analysts predict that PagerDuty will post -0.27 EPS for the current year.

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.