PagerDuty Target of Unusually Large Options Trading (NYSE:PD)

PagerDuty (NYSE:PD) was the recipient of some unusual options trading on Wednesday. Investors purchased 13,737 put options on the company. This is an increase of 794% compared to the average daily volume of 1,536 put options.

PagerDuty Stock Performance

Shares of PagerDuty stock traded down $0.21 during trading hours on Wednesday, hitting $6.29. 1,354,508 shares of the company were exchanged, compared to its average volume of 3,346,491. The company has a current ratio of 2.01, a quick ratio of 2.01 and a debt-to-equity ratio of 1.56. The business has a 50-day moving average of $8.31 and a 200-day moving average of $12.42. PagerDuty has a 1 year low of $6.15 and a 1 year high of $19.68. The stock has a market capitalization of $534.10 million, a price-to-earnings ratio of 3.42, a P/E/G ratio of 3.15 and a beta of 0.73.

PagerDuty (NYSE:PD) last posted its quarterly earnings data on Thursday, March 12th. The company reported $0.29 earnings per share for the quarter, beating analysts’ consensus estimates of $0.24 by $0.05. The firm had revenue of $124.79 million for the quarter, compared to analyst estimates of $122.96 million. PagerDuty had a net margin of 35.30% and a return on equity of 16.29%. PagerDuty’s quarterly revenue was up 2.7% on a year-over-year basis. During the same period last year, the firm posted $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 fiscal year.

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on PD shares. Zacks Research downgraded PagerDuty from a “strong-buy” rating to a “hold” rating in a report on Monday, January 26th. Craig Hallum cut shares of PagerDuty from a “buy” rating to a “hold” rating and cut their target price for the company from $20.00 to $15.00 in a report on Wednesday, November 26th. Weiss Ratings reiterated a “sell (d+)” rating on shares of PagerDuty in a research report on Monday, December 29th. Truist Financial decreased their price target on shares of PagerDuty from $12.00 to $9.00 and set a “buy” rating for the company in a research note on Friday, March 13th. Finally, TD Cowen lowered their price objective on shares of PagerDuty from $20.00 to $10.00 and set a “buy” rating on the stock in a research report on Friday, March 13th. Three research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $12.40.

Insider Transactions at PagerDuty

In related news, Director Dan Alexandru Solomon sold 266,667 shares of the firm’s stock in a transaction that occurred 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 transaction, the director owned 2,389,665 shares in the company, valued at $31,902,027.75. This trade represents a 10.04% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. 8.00% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in PD. Vanguard Group Inc. boosted its holdings in PagerDuty by 3.8% in the 4th quarter. Vanguard Group Inc. now owns 13,066,929 shares of the company’s stock valued at $171,307,000 after purchasing an additional 472,975 shares in the last quarter. ARK Investment Management LLC increased its position in 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 purchasing an additional 224,769 shares during the period. Geode Capital Management LLC raised its stake in shares of PagerDuty by 2.9% during the 4th quarter. Geode Capital Management LLC now owns 2,113,117 shares of the company’s stock worth $27,708,000 after buying an additional 58,881 shares in the last quarter. Ameriprise Financial Inc. lifted its holdings in shares of PagerDuty by 333.2% in the 3rd quarter. Ameriprise Financial Inc. now owns 1,450,429 shares of the company’s stock valued at $23,961,000 after buying an additional 1,115,577 shares during the period. Finally, Loomis Sayles & Co. L P lifted its holdings in shares of PagerDuty by 0.3% in the 4th quarter. Loomis Sayles & Co. L P now owns 1,092,963 shares of the company’s stock valued at $14,329,000 after buying an additional 3,276 shares during the period. 97.26% of the stock is owned by hedge funds and other institutional investors.

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.