PagerDuty, Inc. (NYSE:PD), a leading provider of digital operations management solutions, recently saw an intriguing development in its ownership landscape. According to a filing with the Securities & Exchange Commission on June 30, 2023, Harbour Capital Advisors LLC purchased a new position in the company during the first quarter. The investment firm acquired 15,905 shares of PagerDuty’s stock, valued at approximately $556,000.
PagerDuty operates a robust digital operations management platform that collects data and digital signals from various software-enabled systems and devices. Leveraging advanced machine learning capabilities, the company’s platform efficiently correlates, processes, and predicts opportunities and issues for businesses operating across different regions such as the United States, EMEA (Europe, Middle East & Africa), Asia Pacific, and Japan.
In other noteworthy news surrounding PagerDuty, Rathi Murthy, a director of the company, recently sold 45,000 shares of PagerDuty’s stock in a transaction that took place on Friday, June 23rd. The shares were sold at an average price of $21.44 per share, resulting in a total transaction value of $964,800. Following this sale transaction, Murthy now holds 23,375 shares in the company with an approximate value of $501,160. This transaction was disclosed in a filing with the SEC and more details can be found through the provided hyperlink.
CEO Jennifer Tejada also made a significant stock sale on Tuesday, May 9th when she disposed of 75,000 shares at an average price of $29.06 per share. The total value of Tejada’s stock sale reached approximately $2,1795 ,5000 million dollars.Looking at her current holdings after the sale revealsholds thate she still has sizable stake in PagersDuty securities., Ttotaling to around.. With such knowledge about her diminishing stake in the company this development raises questions about her commitment to the firm’s long-term growth strategy.
It is worth mentioning that director Rathi Murthy was involved in yet another stock sale on the same day, Friday, June 23rd. The director disposed of a further 45,000 shares at an average price of $21.44 per share. This transaction had a total value of $964,800 and left Murthy with 23,375 shares directly owned in the company.
These insider stock sales reflect an interesting pattern among PagerDuty’s leadership team. Over the last quarter, insiders have sold a total of 200,440 shares of company stock with an approximate market value of $5,714,798. As these transactions were conducted by company insiders who are beneficial owners of significant portions of PagerDuty’s stock (approximately 7.90%), it may raise concerns among investors about potential reasons behind such significant divesture actions.
Given the evolving landscape in which PagerDuty operates and the competitive nature of its industry sector, investors and analysts alike may interpret these insider stock sales as signals for assessment regarding future prospects and potential challenges faced by the company.
PagerDuty remains steadfast in its commitment to delivering innovative digital operations management solutions to businesses across various regions, continuously adapting its platform to address ever-changing complexities in today’s technology-driven world. It is essential for stakeholders to closely monitor developments within the company while considering external factors impacting their investment decisions.
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PagerDuty, Inc. Sees Changes in Ownership Structure as Institutional Investors Increase Stakes
PagerDuty, Inc., a digital operations management platform, has recently seen changes in its ownership structure as several hedge funds and institutional investors have adjusted their stakes in the company. In particular, Vanguard Group Inc. increased its holdings in PagerDuty by 2.5% during the third quarter, acquiring an additional 180,197 shares. This brings Vanguard Group Inc.’s total ownership to 7,481,775 shares valued at $172,604,000. Similarly, William Blair Investment Management LLC raised its holdings by 11.8% during the fourth quarter and now owns 4,886,613 shares worth $129,788,000. RGM Capital LLC also increased its holdings by 1.9% during the same period and currently holds 3,982,801 shares valued at $105,783,000. Additionally, Clearbridge Investments LLC boosted its holdings by 1.6% and now possesses 3,640,600 shares worth $96,694,000. State Street Corp rounded off this list of institutional investors by raising its holdings in PagerDuty by 1.5%.
These recent changes in ownership highlight the confidence that institutional investors have placed in PagerDuty’s potential for growth and success in the market. As major players acquire more shares in the company and adjust their positions accordingly based on their analysis of PagerDuty’s performance and prospects.
Numerous brokerages have also chimed in on the stock’s outlook recently. One such example is Robert W. Baird which lowered their price target from $35 to $32 on June 2nd while Royal Bank of Canada reduced theirs from $37 to $32 also on June 2nd.
Nonetheless Morgan Stanley expressed an optimistic outlook for PagerDuty when they raised their target price from $36 to $37 back in March this year giving it an “overweight” rating.
The overall consensus rating on PagerDuty’s stock, according to Bloomberg.com, is a “Moderate Buy,” with a consensus price target of $33.30.
PagerDuty, Inc. operates its digital operations management platform in various regions across the globe including the United States, EMEA, the Asia Pacific, and Japan. The platform enables the collection of data and digital signals from various software-enabled systems and devices. Leveraging powerful machine learning algorithms, the company’s platform can effectively correlate, process, and predict opportunities and issues.
Currently listed on the NYSE as PD, shares of PagerDuty opened at $22.02 on June 30th. The stock has a 50-day moving average of $26.34 and a 200-day moving average of $28.36.
With regards to its financial performance for the quarter ending June 1st this year, PagerDuty reported earnings per share (EPS) of $0.20 which exceeded analysts’ consensus estimates by $0.11. The company’s revenue for the quarter reached $103.25 million which was in line with expectations. Moreover, compared to the same quarter last year, PagerDuty experienced an impressive 20.9% growth in revenue.
Despite these positive results, there are concerns about PagerDuty’s return on equity (ROE) which currently stands at a negative 35.07% as well as its negative net margin of 27.74%. However it is worth mentioning that these figures may be more indicative of capital investment decisions made by management than pure operational inefficiencies.
Looking ahead, analysts predict that PagerDuty will post -0.57 EPS for the current year.
All in all, while institutional investors show confidence in PagerDuty’s potential for growth and success in the market combined with a general consensus rating leaning towards “Moderate Buy”, there are also concerns surrounding certain financial indicators such as ROE and net margin.
Only time will tell how these factors will impact PagerDuty’s market performance and ultimately determine the trajectory of its success in the digital operations management industry.