PagerDuty (NYSE:PD) Board of Directors Approves Stock Repurchase Program

PagerDuty (NYSE:PD) announced that its Board of Directors has approved a share buyback plan on Thursday, March 13th, RTT News reports. The company plans to buyback $150.00 million in outstanding shares. This buyback authorization permits the company to repurchase up to 10.7% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s management believes its stock is undervalued.

PagerDuty Price Performance

Shares of NYSE:PD opened at $15.56 on Friday. PagerDuty has a twelve month low of $15.49 and a twelve month high of $23.85. The stock’s 50 day moving average is $18.24 and its 200-day moving average is $18.70. The company has a quick ratio of 1.97, a current ratio of 1.97 and a debt-to-equity ratio of 3.52. The firm has a market capitalization of $1.40 billion, a price-to-earnings ratio of -19.45 and a beta of 1.12.

PagerDuty (NYSE:PD) last released its quarterly earnings data on Thursday, March 13th. The company reported $0.22 earnings per share for the quarter, topping the consensus estimate of $0.16 by $0.06. The firm had revenue of $121.45 million for the quarter, compared to the consensus estimate of $119.53 million. PagerDuty had a negative net margin of 16.29% and a negative return on equity of 22.02%. The business’s revenue was up 9.3% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.17 earnings per share. Sell-side analysts forecast that PagerDuty will post -0.27 EPS for the current fiscal year.

Wall Street Analyst Weigh In

A number of analysts have weighed in on PD shares. Bank of America downgraded shares of PagerDuty from a “buy” rating to an “underperform” rating and decreased their target price for the company from $23.00 to $18.00 in a research report on Thursday, January 30th. Royal Bank of Canada increased their price objective on shares of PagerDuty from $22.00 to $24.00 and gave the stock an “outperform” rating in a research report on Wednesday, November 27th. Finally, JPMorgan Chase & Co. restated an “underweight” rating and issued a $21.00 target price on shares of PagerDuty in a report on Wednesday, December 11th. Two analysts have rated the stock with a sell rating, five have issued a hold rating and four have issued a buy rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $21.64.

Insider Buying and Selling at PagerDuty

In other news, CEO Jennifer Tejada sold 1,569 shares of the company’s stock in a transaction that occurred on Tuesday, January 28th. The stock was sold at an average price of $20.00, for a total value of $31,380.00. Following the completion of the transaction, the chief executive officer now directly owns 868,311 shares of the company’s stock, valued at $17,366,220. This represents a 0.18 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, insider Shelley Webb sold 7,879 shares of PagerDuty stock in a transaction on Monday, January 6th. The stock was sold at an average price of $18.19, for a total value of $143,319.01. Following the sale, the insider now owns 199,122 shares in the company, valued at $3,622,029.18. This trade represents a 3.81 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 10,048 shares of company stock worth $186,699. Insiders own 7.60% of the company’s stock.

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.