KeyCorp Predicts Pegasystems' Q4 Earnings (NASDAQ:PEGA)

Key Points

• KeyCorp lowered its Q4 2027 EPS estimate for Pegasystems to $0.99 from $1.16 and maintains a “Sector Weight” rating; the consensus full-year EPS estimate is $1.79.
• Pegasystems reported quarterly EPS of $0.35, missing the $0.43 consensus estimate, while revenue of $420.72 million also fell short of expectations. Revenue nevertheless increased 9.4% year over year.
• Analyst sentiment is cautious, with the stock carrying a consensus “Hold” rating and an average price target of $50.10; shares opened at $26.82 and are near their 52-week low of $25.10.

Pegasystems Inc. (NASDAQ:PEGA - Free Report) - Equities research analysts at KeyCorp decreased their Q4 2027 EPS estimates for Pegasystems in a research note issued on Wednesday, July 22nd. KeyCorp analyst D. Au now expects that the technology company will post earnings per share of $0.99 for the quarter, down from their prior estimate of $1.16. KeyCorp currently has a "Sector Weight" rating on the stock. The consensus estimate for Pegasystems' current full-year earnings is $1.79 per share.

Pegasystems (NASDAQ:PEGA - Get Free Report) last posted its 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). Pegasystems had a return on equity of 32.21% and a net margin of 18.66%.The business had revenue of $420.72 million for the quarter, compared to the consensus estimate of $427.38 million. During the same period in the previous year, the firm earned $0.28 earnings per share. The company's revenue was up 9.4% on a year-over-year basis.

A number of other analysts have also commented on the company. DA Davidson set a $32.00 price objective on Pegasystems in a report on Friday. Zacks Research cut Pegasystems from a "strong-buy" rating to a "hold" rating in a research report on Friday, April 24th. Royal Bank Of Canada set a $35.00 price target on Pegasystems and gave the stock an "outperform" rating in a report on Thursday. Weiss Ratings lowered Pegasystems from a "hold (c+)" rating to a "hold (c)" rating in a research report on Thursday, June 4th. Finally, Loop Capital cut Pegasystems from a "buy" rating to a "hold" rating and dropped their price objective for the company from $55.00 to $25.00 in a research note on Thursday. Six analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat, Pegasystems has an average rating of "Hold" and an average price target of $50.10.

Pegasystems Stock Performance

Shares of NASDAQ PEGA opened at $26.82 on Monday. The stock has a market cap of $4.41 billion, a price-to-earnings ratio of 15.15 and a beta of 0.87. Pegasystems has a fifty-two week low of $25.10 and a fifty-two week high of $68.10. The firm's 50-day simple moving average is $32.13 and its 200 day simple moving average is $39.56.

Hedge Funds Weigh In On Pegasystems

Several institutional investors have recently added to or reduced their stakes in PEGA. International Assets Investment Management LLC bought a new stake in Pegasystems in the fourth quarter worth about $28,000. EFG International AG purchased a new stake in shares of Pegasystems during the 4th quarter worth approximately $32,000. Fifth Third Bancorp raised its holdings in shares of Pegasystems by 96.5% in the 4th quarter. Fifth Third Bancorp now owns 617 shares of the technology company's stock worth $37,000 after purchasing an additional 303 shares during the period. Bayforest Capital Ltd raised its holdings in shares of Pegasystems by 316.6% in the 4th quarter. Bayforest Capital Ltd now owns 704 shares of the technology company's stock worth $42,000 after purchasing an additional 535 shares during the period. Finally, Brown Brothers Harriman & Co. lifted its stake in Pegasystems by 386.3% in the fourth quarter. Brown Brothers Harriman & Co. now owns 710 shares of the technology company's stock valued at $42,000 after purchasing an additional 564 shares during the last quarter. Institutional investors own 46.89% of the company's stock.

Insider Buying and Selling

In other Pegasystems news, CAO Efstathios A. Kouninis sold 750 shares of the business's stock in a transaction on Friday, May 29th. The stock was sold at an average price of $34.75, for a total value of $26,062.50. Following the transaction, the chief accounting officer owned 2,894 shares of the company's stock, valued at approximately $100,566.50. The trade was a 20.58% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, 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 directly owned 107,070 shares of the company's stock, valued at approximately $3,570,784.50. This represents a 4.07% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 6,795 shares of company stock worth $229,613 in the last 90 days. Company insiders own 48.40% of the company's stock.

Pegasystems Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders of record on Wednesday, July 1st were paid a $0.03 dividend. This represents a $0.12 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date was Wednesday, July 1st. Pegasystems's payout ratio is presently 6.78%.

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.

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