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PagerDuty Inc is not a strong buy for a beginner, long-term investor at the moment. The stock is currently in a bearish trend with significant insider selling, declining financial performance, and mixed analyst sentiment. While the RSI indicates oversold conditions and there is a chance for short-term recovery, the long-term growth prospects remain uncertain due to seat-based pressures and slowing revenue growth.
The stock is in a bearish trend with MACD negatively expanding (-0.272), RSI at 6.123 indicating oversold conditions, and bearish moving averages (SMA_200 > SMA_20 > SMA_5). Key support levels are S1: 7.048 and S2: 6.073, with resistance at R1: 10.203 and R2: 11.178.

The RSI indicates oversold conditions, suggesting a potential short-term recovery. Gross margin increased by 2.77% YoY, showing some operational efficiency.
Significant insider selling (411937.50% increase), declining net income (-2532.98% YoY) and EPS (-2514.29% YoY), bearish technical indicators, and mixed analyst sentiment with multiple price target downgrades. No recent news or congress trading data to support positive sentiment.
In 2026/Q3, revenue increased by 4.71% YoY to $124.5M, but net income dropped significantly by -2532.98% YoY to -$159.6M. EPS also dropped by -2514.29% YoY to 1.69. Gross margin improved slightly to 85.26%, up 2.77% YoY.
Analysts have downgraded the stock multiple times, with price targets reduced from $20 to as low as $9. The sentiment is mixed, with concerns over seat-based pressures, slowing growth, and limited short-term upside. However, some analysts still see potential in AI monetization and multi-year contracts.