Capital Impact Advisors LLC Makes New Investment in Pegasystems Inc. $PEGA

Key Points

• Capital Impact Advisors LLC opened a new position in Pegasystems, buying 765,317 shares worth about $45.7 million. The stake represents about 0.45% of the company and is the fund’s 9th largest holding.
• Pegasystems reported mixed quarterly results, with EPS of $0.46 and revenue of $429.97 million, both below analyst expectations. Revenue also fell 9.6% year over year.
• The stock has been under pressure, recently trading near its 52-week low of $30.11, while analysts remain broadly positive with a consensus rating of Moderate Buy and an average price target of $63.30.

Capital Impact Advisors LLC acquired a new position in shares of Pegasystems Inc. (NASDAQ:PEGA - Free Report) in the 4th quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm acquired 765,317 shares of the technology company's stock, valued at approximately $45,705,000. Pegasystems makes up 3.6% of Capital Impact Advisors LLC's holdings, making the stock its 9th largest position. Capital Impact Advisors LLC owned about 0.45% of Pegasystems as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds also recently modified their holdings of PEGA. Intrinsic Edge Capital Management LLC bought a new position in Pegasystems in the 3rd quarter valued at $10,940,000. Fisher Asset Management LLC boosted its stake in Pegasystems by 3.0% in 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 acquired a new position in Pegasystems in the fourth quarter worth $31,905,000. Los Angeles Capital Management LLC boosted its stake in Pegasystems by 259.7% in the fourth quarter. Los Angeles Capital Management LLC now owns 411,262 shares of the technology company's stock worth $26,144,000 after purchasing an additional 296,916 shares in the last quarter. Finally, Robinhood Asset Management LLC acquired a new position in Pegasystems in the fourth quarter worth $5,073,000. Institutional investors and hedge funds own 46.89% of the company's stock.

Pegasystems Price Performance

Shares of Pegasystems stock opened at $30.23 on Thursday. The firm has a market cap of $5.05 billion, a P/E ratio of 16.25 and a beta of 0.86. The firm has a 50 day simple moving average of $36.26 and a 200 day simple moving average of $45.09. Pegasystems Inc. has a fifty-two week low of $30.11 and a fifty-two week high of $68.10.

Pegasystems (NASDAQ:PEGA - Get Free Report) last issued its quarterly earnings results on Tuesday, April 21st. The technology company reported $0.46 earnings per share for the quarter, missing analysts' consensus estimates of $0.68 by ($0.22). The company had revenue of $429.97 million during the quarter, compared to analyst estimates of $473.24 million. Pegasystems had a net margin of 20.04% and a return on equity of 30.05%. The business's revenue for the quarter was down 9.6% on a year-over-year basis. During the same period in the prior year, the business earned $0.76 EPS. On average, sell-side analysts expect that Pegasystems Inc. will post 1.93 EPS for the current year.

Pegasystems Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, July 15th. Investors of record on Wednesday, July 1st will be issued a $0.03 dividend. The ex-dividend date of this dividend is Wednesday, July 1st. This represents a $0.12 dividend on an annualized basis and a dividend yield of 0.4%. Pegasystems's dividend payout ratio (DPR) is currently 6.45%.

Analyst Ratings Changes

PEGA has been the topic of a number of recent analyst reports. Rosenblatt Securities reissued a "buy" rating and issued a $58.00 price objective on shares of Pegasystems in a research note on Wednesday, June 10th. Citizens Jmp reissued a "market outperform" rating and issued a $58.00 price objective on shares of Pegasystems in a research note on Wednesday, June 10th. Wedbush reissued an "outperform" rating and issued a $60.00 price objective on shares of Pegasystems in a research note on Thursday, April 23rd. Royal Bank Of Canada reissued an "outperform" rating on shares of Pegasystems in a research note on Tuesday, June 9th. Finally, Zacks Research lowered Pegasystems from a "strong-buy" rating to a "hold" rating in a research note on Friday, April 24th. Eight research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $63.30.

Insider Buying and Selling

In related news, insider Rifat Kerim Akgonul sold 4,545 shares of the firm's stock in a transaction that occurred on Tuesday, May 19th. The shares were sold at an average price of $33.35, for a total value of $151,575.75. Following the completion of the sale, the insider owned 107,070 shares of the company's stock, valued at $3,570,784.50. This trade represents a 4.07% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CAO Efstathios A. Kouninis sold 750 shares of the firm's stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $36.99, for a total transaction of $27,742.50. Following the completion of the sale, the chief accounting officer directly owned 2,144 shares of the company's stock, valued at approximately $79,306.56. This represents a 25.92% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 6,045 shares of company stock valued at $205,381. 48.40% of the stock is currently owned by company insiders.

Pegasystems 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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