Should You Buy PagerDuty Inc (PD) Today? Analysis, Price Targets, and 2026 Outlook.
Conclusion
Hold
Latest Price
10.510
1 Day change
-2.32%
52 Week Range
19.750
Analysis Updated At
2026/01/26
PagerDuty Inc is not a good buy for a beginner investor with a long-term strategy at this time. The stock shows bearish technical indicators, weak financial performance, insider selling, and mixed to negative analyst ratings. While there are no significant positive catalysts, the company's growth and profitability challenges make it unsuitable for immediate investment.
Technical Analysis
The technical indicators are bearish. The MACD histogram is negative and contracting, RSI is neutral at 34.003, and moving averages show a bearish trend (SMA_200 > SMA_20 > SMA_5). The stock is trading below key pivot levels, with support at 10.857 and resistance at 12.454.
Options Data
Bullish
Open Interest Put-Call Ratio
Bullish
Option Volume Put-Call Ratio
The low Put-Call ratios indicate a moderately bullish sentiment in options trading, but this is not strong enough to offset the bearish technical and fundamental signals.
Technical Summary
Sell
10
Buy
4
Positive Catalysts
The company has a strong gross margin of 85.26%, which increased by 2.77% YoY. Additionally, there is speculation in the market about potential buyout offers for technology companies, which could include PagerDuty.
Neutral/Negative Catalysts
Insiders are heavily selling, with a 411937.50% increase in selling activity over the last month. Analysts have downgraded the stock multiple times, citing seat-based pressures, demand headwinds, and limited margin upside. The company's financial performance is weak, with net income and EPS showing significant declines. Technical indicators are bearish, and there is no recent congress trading data to suggest political interest in the stock.
Financial Performance
In 2026/Q3, revenue increased by 4.71% YoY to $124.5M, but net income dropped drastically by -2532.98% YoY to -$159.6M. EPS also fell by -2514.29% YoY to 1.69. Gross margin improved slightly to 85.26%, up 2.77% YoY. Overall, the financial performance indicates significant profitability challenges.
Growth
Profitability
Efficiency
Analyst Ratings and Price Target Trends
Analysts have downgraded the stock multiple times recently. RBC Capital downgraded it to Sector Perform with a price target of $15, citing persistent seat-based pressures. BofA moved it to Underperform with a $12 price target, highlighting demand headwinds and a pricing model change. Truist and Morgan Stanley lowered price targets but maintained Buy and Equal Weight ratings, respectively. Overall, the sentiment is mixed to negative, with limited confidence in short-term growth.
Wall Street analysts forecast PD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PD is 16.14 USD with a low forecast of 12 USD and a high forecast of 20 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
Wall Street analysts forecast PD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PD is 16.14 USD with a low forecast of 12 USD and a high forecast of 20 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Buy
4 Hold
1 Sell
Moderate Buy
Current: 10.760
Low
12
Averages
16.14
High
20
Current: 10.760
Low
12
Averages
16.14
High
20
Truist
Buy
downgrade
$20 -> $16
AI Analysis
2026-01-07
Reason
Truist
Price Target
$20 -> $16
AI Analysis
2026-01-07
downgrade
Buy
Reason
Truist lowered the firm's price target on PagerDuty to $16 from $20 and keeps a Buy rating on the shares. Over the past year, a clear split has emerged between AI winners and losers, with seat-based business models down an average of 34% while other companies gained 24%, the analyst tells investors in a research note. This bifurcated sentiment is expected to continue driving a valuation gap in 2026, though some of last year's underperformers may rebound, the firm says.
RBC Capital
Outperform -> Sector Perform
downgrade
$17 -> $15
2026-01-05
Reason
RBC Capital
Price Target
$17 -> $15
2026-01-05
downgrade
Outperform -> Sector Perform
Reason
RBC Capital downgraded PagerDuty to Sector Perform from Outperform with a price target of $15, down from $17. The firm believes the company's seat-based pressures are likely to persist. The incident management market will continue to consolidate and there is limited margin upside for PagerDuty in the short-term, the analyst tells investors in a research note.
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