Pegasystems Inc. (NASDAQ:PEGA) to Issue $0.08 Special Dividend

Key Points

• Pegasystems declared a special dividend of $0.083 per share, payable September 16 to shareholders of record on August 17; the ex-dividend date is also August 17.
• Shares opened at $32.32, down 3.5%, after the company reported quarterly EPS of $0.35—below the $0.43 analyst estimate—while revenue rose 9.4% year over year to $420.72 million.
• Insiders sold 6,795 shares worth approximately $229,613 over the past three months, while institutional investors and hedge funds own 46.89% of Pegasystems’ stock.

Pegasystems Inc. (NASDAQ:PEGA - Get Free Report) announced a special dividend on Thursday, February 5th. Shareholders of record on Monday, August 17th will be paid a dividend of 0.083 per share by the technology company on Wednesday, September 16th. The ex-dividend date is Monday, August 17th.

Pegasystems has increased its dividend by an average of 0.1%per year over the last three years. Pegasystems has a dividend payout ratio of 3.3% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Pegasystems to earn $1.97 per share next year, which means the company should continue to be able to cover its $0.12 annual dividend with an expected future payout ratio of 6.1%.

Pegasystems Stock Down 3.5%

Shares of NASDAQ:PEGA opened at $32.32 on Friday. The business has a 50-day moving average price of $31.13 and a 200-day moving average price of $37.23. The stock has a market cap of $5.31 billion, a price-to-earnings ratio of 18.26 and a beta of 0.87. Pegasystems has a 52-week low of $25.10 and a 52-week high of $68.10.

Pegasystems (NASDAQ:PEGA - Get Free Report) last released its quarterly earnings data 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 during the quarter, compared to analysts' expectations of $427.38 million. Pegasystems had a net margin of 18.66% and a return on equity of 32.21%. The firm's revenue was up 9.4% on a year-over-year basis. During the same period last year, the company earned $0.28 earnings per share. As a group, equities analysts anticipate that Pegasystems will post 1.71 EPS for the current fiscal year.

Insider Transactions at Pegasystems

In other Pegasystems news, insider Rifat Kerim Akgonul sold 4,545 shares of the company's stock in a transaction dated Tuesday, May 19th. The shares were sold at an average price of $33.35, for a total value of $151,575.75. Following the transaction, the insider owned 107,070 shares of the company's stock, valued at $3,570,784.50. This represents a 4.07% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. 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 transaction of $27,742.50. Following the sale, the chief accounting officer owned 2,144 shares of the company's stock, valued at approximately $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 a total of 6,795 shares of company stock valued at $229,613 over the last three months. Corporate insiders own 48.40% of the company's stock.

Institutional Trading of Pegasystems

Several institutional investors have recently added to or reduced their stakes in the stock. Strategic Global Advisors LLC purchased a new stake in Pegasystems in the second quarter valued at approximately $1,167,000. Freestone Grove Partners LP purchased a new position in shares of Pegasystems during the second quarter worth $6,266,000. Odyssean LLC purchased a new position in shares of Pegasystems during the second quarter worth $1,205,000. Man Group plc purchased a new position in shares of Pegasystems during the second quarter worth $790,000. Finally, Jupiter Topco LLC acquired a new stake in shares of Pegasystems in the second quarter valued at $1,217,000. Institutional investors and hedge funds own 46.89% of the company's stock.

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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