Pegasystems (NASDAQ:PEGA) Given Neutral Rating at JPMorgan Chase & Co.

Key Points

• JPMorgan reaffirmed a “neutral” rating on Pegasystems but lowered its price target from $54 to $47, implying 27.58% potential upside from the stock’s $36.84 price.
• Analyst sentiment remains mixed: five analysts rate the stock a Buy, seven a Hold and one a Sell, resulting in an average “Hold” rating and a consensus price target of $47.40.
• Pegasystems missed quarterly earnings and revenue estimates, reporting $0.35 in EPS versus $0.43 expected and $420.72 million in revenue versus $427.38 million projected. Insiders have sold 50,690 shares worth approximately $1.81 million over the past 90 days.

Pegasystems (NASDAQ:PEGA - Get Free Report)'s stock had its "neutral" rating reaffirmed by investment analysts at JPMorgan Chase & Co. in a report issued on Thursday, Benzinga reports. They presently have a $47.00 price objective on the technology company's stock, down from their previous price objective of $54.00. JPMorgan Chase & Co.'s price objective points to a potential upside of 27.58% from the stock's current price.

Other research analysts also recently issued research reports about the company. Royal Bank Of Canada set a $35.00 price objective on Pegasystems and gave the company an "outperform" rating in a research note on Thursday, July 23rd. Zacks Research cut shares of Pegasystems from a "hold" rating to a "strong sell" rating in a research report on Tuesday, August 25th. DA Davidson set a $32.00 price target on Pegasystems and gave the company a "buy" rating in a research note on Friday, July 24th. Rosenblatt Securities cut their price objective on Pegasystems from $58.00 to $47.00 and set a "buy" rating on the stock in a research note on Thursday, July 23rd. Finally, Barclays reiterated an "overweight" rating and issued a $39.00 target price (down from $48.00) on shares of Pegasystems in a report on Thursday, July 23rd. Five analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $47.40.

Pegasystems Stock Performance

NASDAQ PEGA opened at $36.84 on Thursday. The firm's fifty day moving average price is $33.10 and its two-hundred day moving average price is $35.91. The stock has a market cap of $6.06 billion, a PE ratio of 20.81 and a beta of 0.89. Pegasystems has a fifty-two week low of $25.10 and a fifty-two week high of $68.10.

Pegasystems (NASDAQ:PEGA - Get Free Report) last released its quarterly earnings data on Tuesday, July 21st. The technology company reported $0.35 earnings per share for the quarter, missing the consensus estimate of $0.43 by ($0.08). Pegasystems had a net margin of 18.66% and a return on equity of 32.21%. The firm had revenue of $420.72 million for the quarter, compared to analyst estimates of $427.38 million. During the same period last year, the business earned $0.28 EPS. The company's revenue was up 9.4% compared to the same quarter last year. As a group, sell-side analysts predict that Pegasystems will post 1.66 earnings per share for the current fiscal year.

Insider Activity at Pegasystems

In other Pegasystems news, insider Kerim Akgonul sold 7,000 shares of the stock in a transaction that occurred on Friday, September 11th. The stock was sold at an average price of $36.03, for a total transaction of $252,210.00. Following the transaction, the insider directly owned 104,804 shares in the company, valued at approximately $3,776,088.12. This represents a 6.26% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Kenneth Stillwell sold 39,627 shares of the firm's stock in a transaction that occurred on Friday, September 11th. The stock was sold at an average price of $35.77, for a total transaction of $1,417,457.79. Following the sale, the chief financial officer directly owned 95,225 shares of the company's stock, valued at approximately $3,406,198.25. This trade represents a 29.39% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 50,690 shares of company stock worth $1,812,829 in the last 90 days. Corporate insiders own 48.40% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of PEGA. BlackRock Inc. bought a new stake in shares of Pegasystems during the second quarter valued at approximately $286,923,000. Copeland Capital Management LLC bought a new position in shares of Pegasystems in the 1st quarter worth $47,817,000. Ranger Investment Management L.P. bought a new position in shares of Pegasystems in the 2nd quarter worth $26,168,000. Capital Impact Advisors LLC acquired a new stake in Pegasystems in the 4th quarter valued at $45,705,000. Finally, Bank of New York Mellon Corp acquired a new stake in Pegasystems in the 2nd quarter valued at $19,382,000. 46.89% of the stock is owned by institutional investors.

About Pegasystems

Pegasystems Inc develops enterprise software for customer engagement, workflow automation and business process management. Its solutions help organizations manage customer service, sales, marketing, operations and back-office processes across digital and traditional channels.

The company's product portfolio includes Pega Platform, a low-code application development and automation platform; Pega Customer Service and Pega Sales; Pega Customer Decision Hub for real-time, personalized customer engagement; and tools for case management, robotic process automation and artificial intelligence.

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