Arrowstreet Capital Limited Partnership Raises Stake in Pegasystems Inc. $PEGA

Key Points

• Arrowstreet Capital increased its Pegasystems stake by 663.2% in the first quarter, acquiring 537,683 additional shares for a total position of 618,753 shares valued at approximately $26.3 million. Hedge funds and other institutions own 46.89% of PEGA.
• Pegasystems reported quarterly EPS of $0.35, below the $0.43 consensus estimate, while revenue rose 9.4% year over year to $420.72 million, slightly missing expectations.
• Analyst sentiment is mixed, with six Buy ratings and seven Hold ratings producing an overall “Hold” consensus and an average price target of $50.10. Shares opened at $30.95, well below their 52-week high of $68.10.

Arrowstreet Capital Limited Partnership boosted its stake in Pegasystems Inc. (NASDAQ:PEGA - Free Report) by 663.2% during the 1st quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm owned 618,753 shares of the technology company's stock after acquiring an additional 537,683 shares during the period. Arrowstreet Capital Limited Partnership owned 0.37% of Pegasystems worth $26,334,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in the stock. Sei Investments Co. boosted its position in shares of Pegasystems by 52.9% during the 1st quarter. Sei Investments Co. now owns 1,052,205 shares of the technology company's stock worth $44,782,000 after purchasing an additional 363,896 shares in the last quarter. Fisher Asset Management LLC boosted its position in Pegasystems by 3.0% during the fourth quarter. Fisher Asset Management LLC now owns 1,170,377 shares of the technology company's stock worth $69,895,000 after purchasing an additional 33,643 shares in the last quarter. Norges Bank purchased a new position in shares of Pegasystems in the fourth quarter valued at $31,905,000. Allspring Global Investments Holdings LLC raised its stake in shares of Pegasystems by 117.3% during the 1st quarter. Allspring Global Investments Holdings LLC now owns 814,062 shares of the technology company's stock worth $34,427,000 after buying an additional 439,417 shares during the last quarter. Finally, Los Angeles Capital Management LLC boosted its position in shares of Pegasystems by 259.7% in the 4th quarter. Los Angeles Capital Management LLC now owns 411,262 shares of the technology company's stock worth $26,144,000 after buying an additional 296,916 shares in the last quarter. 46.89% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several research analysts recently issued reports on PEGA shares. Zacks Research downgraded Pegasystems from a "strong-buy" rating to a "hold" rating in a research report on Friday, April 24th. Citizens Jmp downgraded Pegasystems from an "outperform" rating to a "market perform" rating in a research report on Wednesday, July 22nd. Barclays reaffirmed an "overweight" rating and set a $39.00 price objective (down from $48.00) on shares of Pegasystems in a research note on Thursday, July 23rd. DA Davidson set a $32.00 target price on shares of Pegasystems and gave the company a "buy" rating in a research note on Friday, July 24th. Finally, Rosenblatt Securities reduced their target price on shares of Pegasystems from $58.00 to $47.00 and set a "buy" rating on the stock in a report on Thursday, July 23rd. Six research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company's stock. Based on data from MarketBeat, Pegasystems presently has an average rating of "Hold" and a consensus target price of $50.10.

Pegasystems Stock Performance

Pegasystems stock opened at $30.95 on Thursday. Pegasystems Inc. has a 1 year low of $25.10 and a 1 year high of $68.10. The firm has a 50 day moving average price of $31.87 and a 200 day moving average price of $38.92. The company has a market cap of $5.09 billion, a price-to-earnings ratio of 17.49 and a beta of 0.87.

Pegasystems (NASDAQ:PEGA - Get Free Report) last posted its quarterly earnings results on Tuesday, July 21st. The technology company reported $0.35 earnings per share (EPS) for the quarter, missing analysts' consensus estimates 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 analysts' expectations of $427.38 million. During the same period last year, the firm posted $0.28 EPS. Pegasystems's revenue was up 9.4% on a year-over-year basis. Sell-side analysts predict that Pegasystems Inc. will post 1.71 EPS for the current year.

Pegasystems Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, July 15th. Investors of record on Wednesday, July 1st were issued a dividend of $0.03 per share. This represents a $0.12 annualized dividend and a dividend yield of 0.4%. The ex-dividend date was Wednesday, July 1st. Pegasystems's dividend payout ratio (DPR) is presently 6.78%.

Insider Activity at Pegasystems

In other news, CAO Efstathios A. Kouninis sold 750 shares of Pegasystems stock in a transaction that occurred on Friday, May 29th. The shares were sold at an average price of $34.75, for a total transaction of $26,062.50. Following the sale, the chief accounting officer owned 2,894 shares in the company, valued at $100,566.50. This trade represents a 20.58% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Rifat Kerim Akgonul sold 4,545 shares of Pegasystems stock in a transaction on Tuesday, May 19th. The stock was sold at an average price of $33.35, for a total transaction of $151,575.75. Following the sale, the insider directly owned 107,070 shares in the company, valued at $3,570,784.50. This trade represents a 4.07% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 6,795 shares of company stock worth $229,613 over the last three months. 48.40% of the stock is currently owned by corporate insiders.

Trending Headlines about Pegasystems

Here are the key news stories impacting Pegasystems this week:

• Positive Sentiment: Pegasystems launched a virtual national internship program in India with the All India Council for Technical Education. The initiative will train engineering students in enterprise AI and agentic engineering, potentially expanding Pega’s future talent pipeline and supporting adoption of its AI platform. Pega Partners AICTE to Train Students in Enterprise AI and Agentic Engineering
• Positive Sentiment: The company also expanded its University Academic Programme with three new Indian partners, reinforcing its efforts to develop enterprise-AI skills and strengthen long-term awareness of the Pega platform. Pegasystems expands University Academic Programme with three new partners in India
• Neutral Sentiment: Pegasystems is considering outcome-based AI pricing to better align customer payments with business results and manage the rising cost of AI workloads. The approach could improve customer adoption and protect margins, although it may make revenue timing and profitability less predictable. Pegasystems bets on outcome-based AI pricing to curb costs
• Negative Sentiment: KeyCorp cut its EPS forecasts across multiple periods, including FY2026 to $1.73 from $2.11 and FY2027 to $1.79 from $2.38, while maintaining a “Sector Weight” rating. The broad reductions signal weaker expected earnings momentum. KeyCorp lowers Pegasystems earnings estimates
• Negative Sentiment: A Seeking Alpha analysis argued that annual contract value growth must accelerate for the investment thesis to work, highlighting concerns that Pegasystems’ growth may not justify a stronger valuation. Another commentary recommended avoiding PEGA, adding to the cautious sentiment. Pegasystems: ACV Growth Needs To Accelerate For The Stock To Work

Pegasystems Company Profile

Pegasystems Inc is a software company specializing in customer engagement and digital process automation solutions. Headquartered in Cambridge, Massachusetts, Pegasystems develops enterprise applications designed to help organizations streamline operations, manage customer interactions and automate complex workflows. Its platform supports a wide range of use cases, from sales and marketing optimization to case management and robotic process automation.

The core of Pegasystems' offering is the Pega Platform, a low-code development environment that enables businesses to build and deploy applications with minimal hand-coding.

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