KeyCorp Brokers Reduce Earnings Estimates for Pegasystems

Pegasystems Inc. (NASDAQ:PEGA - Free Report) - Investment analysts at KeyCorp dropped their Q3 2026 earnings per share estimates for Pegasystems in a research note issued to investors on Wednesday, July 22nd. KeyCorp analyst D. Au now anticipates that the technology company will earn $0.28 per share for the quarter, down from their previous forecast of $0.40. KeyCorp has a "Sector Weight" rating on the stock. The consensus estimate for Pegasystems' current full-year earnings is $1.79 per share. KeyCorp also issued estimates for Pegasystems' Q4 2026 earnings at $0.99 EPS, FY2026 earnings at $1.73 EPS, Q1 2027 earnings at $0.27 EPS, Q2 2027 earnings at $0.24 EPS, Q3 2027 earnings at $0.31 EPS and FY2027 earnings at $1.79 EPS.

Other analysts also recently issued reports about the stock. Zacks Research downgraded shares of Pegasystems from a "strong-buy" rating to a "hold" rating in a research note on Friday, April 24th. Rosenblatt Securities reduced their price objective on Pegasystems from $58.00 to $47.00 and set a "buy" rating on the stock in a research note on Thursday, July 23rd. William Blair downgraded Pegasystems from an "outperform" rating to a "market perform" rating in a report on Wednesday, July 22nd. Wedbush reissued an "outperform" rating and issued a $60.00 target price on shares of Pegasystems in a research note on Thursday, April 23rd. Finally, Citizens Jmp cut Pegasystems from an "outperform" rating to a "market perform" rating in a report on Wednesday, July 22nd. Six analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $50.10.

Pegasystems Stock Performance

Shares of Pegasystems stock opened at $28.60 on Tuesday. Pegasystems has a 52-week low of $25.10 and a 52-week high of $68.10. The company has a fifty day moving average of $32.02 and a 200-day moving average of $39.34. The stock has a market capitalization of $4.70 billion, a price-to-earnings ratio of 16.16 and a beta of 0.87.

Pegasystems (NASDAQ:PEGA - Get Free Report) last posted its quarterly earnings results on Tuesday, July 21st. The technology company reported $0.35 EPS for the quarter, missing the consensus estimate of $0.43 by ($0.08). The business had revenue of $420.72 million for the quarter, compared to analysts' expectations of $427.38 million. Pegasystems had a return on equity of 32.21% and a net margin of 18.66%.The company's revenue was up 9.4% compared to the same quarter last year. During the same period last year, the business posted $0.28 earnings per share.

Institutional Trading of Pegasystems

Large investors have recently modified their holdings of the business. NewEdge Advisors LLC raised its position in Pegasystems by 141,900.0% during the 1st quarter. NewEdge Advisors LLC now owns 4,260 shares of the technology company's stock valued at $296,000 after purchasing an additional 4,257 shares during the last quarter. Jones Financial Companies Lllp grew its position in shares of Pegasystems by 450.4% in the 1st quarter. Jones Financial Companies Lllp now owns 1,844 shares of the technology company's stock worth $128,000 after buying an additional 1,509 shares during the last quarter. Goldman Sachs Group Inc. increased its stake in shares of Pegasystems by 5.6% during the first quarter. Goldman Sachs Group Inc. now owns 248,168 shares of the technology company's stock valued at $17,253,000 after buying an additional 13,075 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in shares of Pegasystems by 18.0% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 155,783 shares of the technology company's stock valued at $10,830,000 after acquiring an additional 23,713 shares in the last quarter. Finally, Focus Partners Wealth raised its holdings in shares of Pegasystems by 55.0% during the first quarter. Focus Partners Wealth now owns 5,476 shares of the technology company's stock valued at $381,000 after acquiring an additional 1,943 shares in the last quarter. 46.89% of the stock is owned by institutional investors.

Insider Buying and Selling at Pegasystems

In other Pegasystems news, insider Rifat Kerim Akgonul sold 4,545 shares of the firm's stock in a transaction 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 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 position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CAO Efstathios A. Kouninis sold 750 shares of the business's stock in a transaction dated 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 transaction, the chief accounting officer owned 2,144 shares in the company, valued at $79,306.56. The trade was a 25.92% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 6,795 shares of company stock valued at $229,613 in the last three months. 48.40% of the stock is currently owned by corporate insiders.

Pegasystems Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Wednesday, July 15th. Investors of record on Wednesday, July 1st were issued a dividend of $0.03 per share. This represents a $0.12 dividend on an annualized basis and a yield of 0.4%. The ex-dividend date was Wednesday, July 1st. Pegasystems's dividend payout ratio is currently 6.78%.

Key Headlines Impacting Pegasystems

Here are the key news stories impacting Pegasystems this week:

• Neutral Sentiment: KeyCorp maintained a “Sector Weight” rating on Pegasystems, signaling a cautious view rather than a direct buy or sell recommendation. Its revised FY2027 EPS estimate of $1.79 now matches the broader consensus forecast. KeyCorp Has Pessimistic Outlook of Pegasystems Q4 Earnings
• Negative Sentiment: KeyCorp cut its FY2026 EPS forecast to $1.73 from $2.11 and its FY2027 forecast to $1.79 from $2.38. Quarterly estimates were also reduced, including Q3 2026 to $0.28 from $0.40, Q4 2026 to $0.99 from $1.14, Q1 2027 to $0.27 from $0.43, Q2 2027 to $0.24 from $0.39, and Q3 2027 to $0.31 from $0.41. The broad-based downgrades point to lower expected profitability and are the main bearish catalyst for PEGA. KeyCorp Has Pessimistic Outlook of Pegasystems Q4 Earnings

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.