Bank of America Corp DE Acquires 608,330 Shares of Pegasystems Inc. $PEGA

Key Points

• Bank of America acquired 608,330 Pegasystems shares worth approximately $18.2 million, giving it a 0.37% stake. BlackRock and several other institutional investors also increased or initiated positions.
• Pegasystems reported quarterly revenue of $420.7 million, up 9.4% year over year, but earnings of $0.35 per share fell short of the $0.43 analyst consensus. Shares opened at $34.23, near the lower end of their annual range.
• Analysts maintain a consensus “Hold” rating with an average price target of $47.40, while recent insider activity was negative as executives sold a combined 52,672 shares.

Bank of America Corp DE acquired a new stake in Pegasystems Inc. (NASDAQ:PEGA - Free Report) during the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm acquired 608,330 shares of the technology company's stock, valued at approximately $18,232,000. Bank of America Corp DE owned approximately 0.37% of Pegasystems at the end of the most recent quarter.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. BlackRock Inc. purchased a new position in Pegasystems during the 2nd quarter worth $286,923,000. North Peak Capital Management LLC increased its stake in Pegasystems by 2.3% in the 4th quarter. North Peak Capital Management LLC now owns 2,400,065 shares of the technology company's stock valued at $143,332,000 after buying an additional 53,564 shares during the last quarter. Geode Capital Management LLC increased its stake in Pegasystems by 26.6% in the 4th quarter. Geode Capital Management LLC now owns 2,344,266 shares of the technology company's stock valued at $140,020,000 after buying an additional 492,760 shares during the last quarter. First Trust Advisors LP lifted its position in shares of Pegasystems by 44.4% during the 1st quarter. First Trust Advisors LP now owns 2,048,599 shares of the technology company's stock worth $87,188,000 after buying an additional 630,023 shares in the last quarter. Finally, Fiera Capital Corp lifted its position in shares of Pegasystems by 32.7% during the 4th quarter. Fiera Capital Corp now owns 1,113,171 shares of the technology company's stock worth $66,479,000 after buying an additional 274,219 shares in the last quarter. 46.89% of the stock is owned by institutional investors.

Pegasystems Price Performance

NASDAQ:PEGA opened at $34.23 on Friday. The company has a market capitalization of $5.63 billion, a P/E ratio of 19.34 and a beta of 0.89. The business has a fifty day simple moving average of $33.50 and a two-hundred day simple moving average of $35.45. Pegasystems Inc. has a 1 year low of $25.10 and a 1 year high of $68.10.

Pegasystems (NASDAQ:PEGA - Get Free Report) last issued its quarterly earnings results on Tuesday, July 21st. The technology company reported $0.35 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 in the prior year, the company earned $0.28 EPS. The firm's quarterly revenue was up 9.4% on a year-over-year basis. As a group, analysts anticipate that Pegasystems Inc. will post 1.69 earnings per share for the current year.

Pegasystems Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Thursday, October 1st will be issued a $0.03 dividend. This represents a $0.12 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date of this dividend is Thursday, October 1st. Pegasystems's dividend payout ratio (DPR) is presently 6.78%.

Analyst Ratings Changes

Several research analysts have weighed in on the company. DA Davidson set a $32.00 price objective on Pegasystems and gave the stock a "buy" rating in a research report on Friday, July 24th. William Blair cut Pegasystems from an "outperform" rating to a "market perform" rating in a research note on Wednesday, July 22nd. Royal Bank Of Canada set a $35.00 price target on shares of Pegasystems and gave the stock an "outperform" rating in a report on Thursday, July 23rd. Weiss Ratings restated a "hold (c)" rating on shares of Pegasystems in a research report on Tuesday, September 1st. Finally, Citizens Jmp downgraded shares of Pegasystems from an "outperform" rating to a "market perform" rating in a report on Wednesday, July 22nd. Five equities research analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company's stock. According to data from MarketBeat.com, Pegasystems presently has a consensus rating of "Hold" and an average price target of $47.40.

Insider Buying and Selling

In other Pegasystems news, insider Kerim Akgonul sold 7,000 shares of Pegasystems stock in a transaction dated Friday, September 11th. The stock was sold at an average price of $36.03, for a total transaction of $252,210.00. Following the completion of the transaction, the insider owned 104,804 shares of the company's stock, valued at $3,776,088.12. The trade was a 6.26% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CFO Kenneth Stillwell sold 39,627 shares of the company's stock in a transaction dated Friday, September 11th. The shares were sold at an average price of $35.77, for a total value of $1,417,457.79. Following the sale, the chief financial officer owned 95,225 shares in the company, valued at approximately $3,406,198.25. This represents a 29.39% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 52,672 shares of company stock valued at $1,887,507 in the last ninety days. 48.40% of the stock is owned by company insiders.

Pegasystems Profile

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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