Pegasystems Inc. (NASDAQ:PEGA) Given Average Rating of "Moderate Buy" by Brokerages

Key Points

• Pegasystems has an average analyst rating of “Moderate Buy”, with 8 buy ratings and 3 hold ratings among 11 covering firms. The average 12-month price target is $63.30.
• The company recently reported weaker-than-expected quarterly results, with EPS of $0.46 versus the $0.68 estimate and revenue of $429.97 million versus the $473.24 million forecast. Revenue fell 9.6% year over year.
• Shares were trading lower at $32.16, well below the stock’s 52-week high of $68.10. The company also paid a quarterly dividend of $0.03 per share, equal to a 0.4% annualized yield.

Pegasystems Inc. (NASDAQ:PEGA - Get Free Report) has been assigned an average recommendation of "Moderate Buy" from the eleven research firms that are covering the company, MarketBeat reports. Three analysts have rated the stock with a hold recommendation and eight have issued a buy recommendation on the company. The average 12-month price target among brokerages that have updated their coverage on the stock in the last year is $63.30.

PEGA has been the subject of a number of recent analyst reports. Citigroup restated a "market outperform" rating on shares of Pegasystems in a report on Wednesday, June 10th. Royal Bank Of Canada reaffirmed an "outperform" rating on shares of Pegasystems in a research note on Tuesday, June 9th. Zacks Research cut shares of Pegasystems from a "strong-buy" rating to a "hold" rating in a research note on Friday, April 24th. Weiss Ratings downgraded Pegasystems from a "hold (c+)" rating to a "hold (c)" rating in a report on Thursday, June 4th. Finally, Wedbush reaffirmed an "outperform" rating and issued a $60.00 target price on shares of Pegasystems in a research report on Thursday, April 23rd.

Insider Activity

In other news, insider Rifat Kerim Akgonul sold 4,545 shares of the firm's stock in a transaction dated Tuesday, May 19th. The stock was sold at an average price of $33.35, for a total value of $151,575.75. Following the transaction, the insider directly owned 107,070 shares in the company, valued at $3,570,784.50. This trade represents a 4.07% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CAO Efstathios A. Kouninis sold 750 shares of Pegasystems stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $36.99, for a total value of $27,742.50. Following the completion of the transaction, the chief accounting officer directly owned 2,144 shares in the company, valued at $79,306.56. This represents a 25.92% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 6,795 shares of company stock valued at $229,613 over the last 90 days. 48.40% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of PEGA. International Assets Investment Management LLC acquired a new stake in shares of Pegasystems in the fourth quarter worth $28,000. EFG International AG acquired a new position in shares of Pegasystems during the 4th quarter valued at $32,000. Fifth Third Bancorp boosted its position in Pegasystems by 96.5% during 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 boosted its position in Pegasystems by 316.6% during 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. increased its holdings in Pegasystems by 386.3% in the 4th 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 in the last quarter. 46.89% of the stock is owned by institutional investors and hedge funds.

Pegasystems Trading Down 2.3%

NASDAQ PEGA opened at $32.16 on Friday. The business's 50-day moving average price is $32.67 and its 200 day moving average price is $40.80. Pegasystems has a twelve month low of $28.66 and a twelve month high of $68.10. The company has a market capitalization of $5.37 billion, a PE ratio of 17.29 and a beta of 0.87.

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 (EPS) for the quarter, missing analysts' consensus estimates of $0.68 by ($0.22). Pegasystems had a return on equity of 30.05% and a net margin of 20.04%.The business had revenue of $429.97 million during the quarter, compared to analyst estimates of $473.24 million. During the same period in the previous year, the business posted $0.76 earnings per share. The firm's quarterly revenue was down 9.6% on a year-over-year basis. Equities analysts predict that Pegasystems will post 1.93 EPS for the current year.

Pegasystems Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Wednesday, July 15th. Shareholders of record on Wednesday, July 1st were given 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 of this dividend was Wednesday, July 1st. Pegasystems's payout ratio is 6.45%.

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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