Canada Pension Plan Investment Board Acquires New Position in Pegasystems Inc. $PEGA

Key Points

• Canada Pension Plan Investment Board acquired 350,500 Pegasystems shares worth approximately $10.5 million, giving it a 0.21% stake. Other institutions also added positions, with institutional and hedge-fund ownership reaching 46.89%.
• Analyst sentiment is mixed but has weakened, with several firms downgrading the stock; Pegasystems carries an average “Hold” rating and a $50.10 consensus price target. The shares recently traded at $36.17, near their 200-day moving average.
• 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. The company also maintains a quarterly dividend of $0.03 per share, equivalent to a 0.3% yield.

Canada Pension Plan Investment Board purchased a new position in Pegasystems Inc. (NASDAQ:PEGA - Free Report) during the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor purchased 350,500 shares of the technology company's stock, valued at approximately $10,504,000. Canada Pension Plan Investment Board owned about 0.21% of Pegasystems at the end of the most recent quarter.

A number of other institutional investors have also recently added to or reduced their stakes in PEGA. Legal & General Group Plc bought a new stake in Pegasystems in the second quarter worth $3,427,000. The Manufacturers Life Insurance Company bought a new stake in shares of Pegasystems during the 2nd quarter worth $2,011,000. Ranger Investment Management L.P. acquired a new position in Pegasystems in the 2nd quarter valued at $26,168,000. Sanctuary Advisors LLC acquired a new stake in shares of Pegasystems in the second quarter valued at about $224,000. Finally, Globeflex Capital L P acquired a new stake in Pegasystems in the 2nd quarter valued at approximately $147,000. 46.89% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling

In other Pegasystems news, CAO Efstathios A. Kouninis sold 750 shares of the business's stock in a transaction on Monday, June 1st. The stock was sold at an average price of $36.99, for a total value of $27,742.50. Following the transaction, the chief accounting officer owned 2,144 shares of the company's stock, valued at approximately $79,306.56. The trade was a 25.92% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Rifat Kerim Akgonul sold 3,000 shares of the stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $33.99, for a total value of $101,970.00. Following the sale, the insider owned 108,049 shares in the company, valued at $3,672,585.51. The trade was a 2.70% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 4,500 shares of company stock worth $153,945. 48.40% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on the stock. Citizens Jmp cut shares of Pegasystems from an "outperform" rating to a "market perform" rating in a research note on Wednesday, July 22nd. 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. Zacks Research cut shares of Pegasystems from a "hold" rating to a "strong sell" rating in a research note on Tuesday, August 25th. KeyCorp cut Pegasystems from an "overweight" rating to a "sector weight" rating in a report on Wednesday, July 22nd. Finally, Loop Capital downgraded Pegasystems from a "buy" rating to a "hold" rating and reduced their price objective for the stock from $55.00 to $25.00 in a research report on Thursday, July 23rd. Six equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of "Hold" and an average target price of $50.10.

Pegasystems Trading Up 0.8%

NASDAQ PEGA opened at $36.17 on Friday. The stock's 50 day moving average is $31.46 and its two-hundred day moving average is $36.53. The company has a market capitalization of $5.95 billion, a price-to-earnings ratio of 20.44 and a beta of 0.87. 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 released its quarterly earnings data on Tuesday, July 21st. The technology company reported $0.35 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.43 by ($0.08). The company had revenue of $420.72 million for the quarter, compared to analyst estimates of $427.38 million. Pegasystems had a return on equity of 32.21% and a net margin of 18.66%.The business's revenue was up 9.4% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.28 earnings per share. On average, analysts predict that Pegasystems Inc. will post 1.71 earnings per share for the current year.

Pegasystems Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders of record on Wednesday, July 1st were issued a $0.03 dividend. This represents a $0.12 annualized dividend and a dividend yield of 0.3%. The ex-dividend date of this dividend was Wednesday, July 1st. Pegasystems's payout ratio is presently 6.78%.

Trending Headlines about Pegasystems

Here are the key news stories impacting Pegasystems this week:

• Positive Sentiment: Expanded Coforge partnership: Coforge can now brand, sell and implement Pegasystems’ AI solutions, including industry-focused applications for enterprise modernization. The arrangement could broaden Pega’s distribution, accelerate adoption of its automation platform and create additional long-term revenue opportunities. Coforge expands partnership with Pega
• Positive Sentiment: AI positioning is attracting buyers: Coverage highlights Pegasystems as a potential beneficiary of enterprises becoming more selective about AI deployment. Pega’s workflow automation, low-code development and governance capabilities may appeal to companies seeking practical, controlled enterprise AI rather than experimental tools. The stock also benefited from a broader software-sector rally following Salesforce’s strong results, particularly among beaten-down agentic-AI names. Could Pegasystems Stock Win as Enterprises Rethink AI Deployment?
• Neutral Sentiment: Insider transaction was limited: Chief Product Officer Rifat Kerim Akgonul sold 3,000 shares for approximately $101,970, reducing his holdings by about 2.7%. The sale may prompt caution, but he continues to own more than 108,000 shares, limiting the significance of the transaction by itself. Pegasystems Insider Sells Stock
• Negative Sentiment: Analyst downgrade and legal investigation: Zacks Research downgraded PEGA from “hold” to “strong sell.” Separately, Pomerantz LLP announced an investigation into potential claims on behalf of investors, creating a possible legal overhang and additional volatility. Pomerantz Investor Alert

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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