Capital Research Global Investors Sells 1,455,573 Shares of Pegasystems Inc. $PEGA

Key Points

• Capital Research Global Investors sold 1,455,573 shares of Pegasystems in Q3, cutting its stake by 36.6% to 2,517,587 shares (about 1.48% of the company) worth roughly $144.8 million.
• Chairman Alan Trefler sold 45,000 shares at an average $49.02 for $2.2059 million, a 0.10% reduction in his holding, but insiders still control about 49.70% of the stock.
• Pegasystems slightly beat Q results (EPS $0.76 vs. $0.74; revenue $504.3M), set FY2026 guidance at 2.75 EPS, and carries a consensus Moderate Buy rating with an average target price of $67.60.

Capital Research Global Investors decreased its holdings in Pegasystems Inc. (NASDAQ:PEGA - Free Report) by 36.6% in the 3rd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 2,517,587 shares of the technology company's stock after selling 1,455,573 shares during the period. Capital Research Global Investors owned 1.48% of Pegasystems worth $144,761,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors also recently modified their holdings of the business. Vanguard Group Inc. boosted its holdings in Pegasystems by 2.0% in the 3rd quarter. Vanguard Group Inc. now owns 11,272,359 shares of the technology company's stock worth $648,161,000 after buying an additional 221,791 shares during the period. Massachusetts Financial Services Co. MA grew its stake in Pegasystems by 23.1% in the 3rd quarter. Massachusetts Financial Services Co. MA now owns 4,987,291 shares of the technology company's stock valued at $286,769,000 after buying an additional 937,216 shares in the last quarter. AQR Capital Management LLC raised its holdings in Pegasystems by 236.2% during the 2nd quarter. AQR Capital Management LLC now owns 4,037,552 shares of the technology company's stock valued at $217,584,000 after acquiring an additional 2,836,733 shares during the period. Bares Capital Management Inc. lifted its position in shares of Pegasystems by 76.6% during the second quarter. Bares Capital Management Inc. now owns 3,542,716 shares of the technology company's stock worth $191,767,000 after acquiring an additional 1,536,726 shares in the last quarter. Finally, State Street Corp lifted its position in shares of Pegasystems by 255.3% during the second quarter. State Street Corp now owns 2,907,677 shares of the technology company's stock worth $157,393,000 after acquiring an additional 2,089,375 shares in the last quarter. Institutional investors own 46.89% of the company's stock.

Insider Activity at Pegasystems

In related news, Chairman Alan Trefler sold 45,000 shares of the company's stock in a transaction that occurred on Wednesday, January 21st. The shares were sold at an average price of $49.02, for a total value of $2,205,900.00. Following the transaction, the chairman directly owned 44,394,454 shares in the company, valued at approximately $2,176,216,135.08. This represents a 0.10% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 49.70% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on the company. Wedbush reduced their price target on Pegasystems from $75.00 to $60.00 and set an "outperform" rating for the company in a research report on Thursday, February 12th. Citizens Jmp dropped their price objective on Pegasystems from $78.00 to $58.00 and set a "market outperform" rating on the stock in a report on Thursday, February 12th. KeyCorp set a $60.00 target price on Pegasystems in a research note on Thursday, February 5th. JPMorgan Chase & Co. lifted their target price on Pegasystems from $65.00 to $74.00 and gave the company an "overweight" rating in a report on Friday, December 5th. Finally, Zacks Research upgraded Pegasystems from a "hold" rating to a "strong-buy" rating in a research report on Friday, February 13th. One investment analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat, Pegasystems currently has an average rating of "Moderate Buy" and an average target price of $67.60.

Pegasystems Stock Performance

Pegasystems stock opened at $43.59 on Thursday. Pegasystems Inc. has a fifty-two week low of $29.84 and a fifty-two week high of $68.10. The stock has a market cap of $7.37 billion, a P/E ratio of 20.42 and a beta of 1.06. The firm's fifty day moving average price is $47.88 and its 200-day moving average price is $54.49.

Pegasystems (NASDAQ:PEGA - Get Free Report) last posted its quarterly earnings data on Tuesday, February 10th. The technology company reported $0.76 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.74 by $0.02. Pegasystems had a return on equity of 38.86% and a net margin of 22.54%.The company had revenue of $504.32 million during the quarter, compared to analyst estimates of $494.60 million. During the same quarter last year, the company earned $0.80 earnings per share. The firm's quarterly revenue was up 2.8% on a year-over-year basis. Pegasystems has set its FY 2026 guidance at 2.750-2.750 EPS. Sell-side analysts predict that Pegasystems Inc. will post 1.89 earnings per share for the current year.

Pegasystems Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, January 16th. Stockholders of record on Friday, January 2nd were given a dividend of $0.03 per share. This represents a $0.12 dividend on an annualized basis and a dividend yield of 0.3%. The ex-dividend date was Friday, January 2nd. Pegasystems's dividend payout ratio (DPR) is 5.63%.

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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