Shannon River Fund Management LLC Has $79.59 Million Stock Position in Pegasystems Inc. $PEGA

Key Points

• Shannon River Fund Management raised its stake in Pegasystems by 105.8% in Q3 to 1,384,219 shares worth $79.59 million, making PEGA the fund's largest holding (about 12.8% of the fund).
• Pegasystems slightly beat quarterly estimates (EPS $0.76 vs. $0.74; revenue $504.3M vs. $494.6M), set FY2026 guidance at 2.75 EPS, and trades around $43.59 with a market cap near $7.37 billion.
• Chairman Alan Trefler sold 45,000 shares (~$2.21M), but insiders still own 49.70% of the company while institutional ownership is ~46.9%; analysts' consensus is a "Moderate Buy" with a $67.60 average price target.

Shannon River Fund Management LLC raised its holdings in shares of Pegasystems Inc. (NASDAQ:PEGA - Free Report) by 105.8% in the 3rd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 1,384,219 shares of the technology company's stock after buying an additional 711,654 shares during the quarter. Pegasystems comprises about 12.8% of Shannon River Fund Management LLC's holdings, making the stock its largest position. Shannon River Fund Management LLC owned 0.82% of Pegasystems worth $79,593,000 at the end of the most recent quarter.

Other institutional investors have also added to or reduced their stakes in the company. AQR Capital Management LLC boosted its position in shares of 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 last quarter. State Street Corp grew its stake in Pegasystems by 255.3% in the 2nd quarter. State Street Corp now owns 2,907,677 shares of the technology company's stock worth $157,393,000 after buying an additional 2,089,375 shares in the last quarter. Massachusetts Financial Services Co. MA increased its holdings in shares of Pegasystems by 86.3% in the 2nd quarter. Massachusetts Financial Services Co. MA now owns 4,050,075 shares of the technology company's stock worth $219,231,000 after buying an additional 1,875,896 shares during the last quarter. Bares Capital Management Inc. raised its position in shares of Pegasystems by 76.6% during the 2nd quarter. Bares Capital Management Inc. now owns 3,542,716 shares of the technology company's stock valued at $191,767,000 after buying an additional 1,536,726 shares in the last quarter. Finally, American Century Companies Inc. grew its position in Pegasystems by 357.6% in the third quarter. American Century Companies Inc. now owns 1,586,793 shares of the technology company's stock worth $91,241,000 after acquiring an additional 1,239,998 shares in the last quarter. 46.89% of the stock is currently owned by institutional investors.

Insider Activity at Pegasystems

In other news, Chairman Alan Trefler sold 45,000 shares of the stock in a transaction dated Wednesday, January 21st. The shares were sold at an average price of $49.02, for a total transaction of $2,205,900.00. Following the completion of the sale, 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 SEC, which is accessible through this hyperlink. Company insiders own 49.70% of the company's stock.

Analysts Set New Price Targets

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

Pegasystems Price Performance

Shares of PEGA stock opened at $43.59 on Thursday. The business has a 50-day moving average of $47.88 and a 200 day moving average of $54.49. The stock has a market capitalization of $7.37 billion, a PE ratio of 20.42 and a beta of 1.06. Pegasystems Inc. has a 1-year low of $29.84 and a 1-year high of $68.10.

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

Pegasystems Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, January 16th. Shareholders of record on Friday, January 2nd were given a $0.03 dividend. The ex-dividend date was Friday, January 2nd. This represents a $0.12 dividend on an annualized basis and a dividend yield of 0.3%. Pegasystems's payout ratio is presently 5.63%.

About Pegasystems

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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