Pegasystems (NASDAQ:PEGA) Cut to "Buy" at Wall Street Zen

Key Points

• Pegasystems (NASDAQ:PEGA) has been downgraded from a "strong-buy" to a "buy" rating by Wall Street Zen, reflecting a shift in analyst sentiment regarding the stock's outlook.
• In recent analyst reports, several firms have raised their price targets for Pegasystems, with a consensus target price now set at $61.83.
• In addition, the company reported quarterly earnings that exceeded expectations, with revenue of $384.51 million, an increase of 9.5% year-over-year.

Pegasystems (NASDAQ:PEGA - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research report issued on Sunday.

Other analysts have also issued reports about the stock. Loop Capital increased their target price on shares of Pegasystems from $60.00 to $70.00 and gave the company a "buy" rating in a research note on Thursday, July 24th. Citigroup increased their target price on shares of Pegasystems from $66.00 to $70.00 and gave the stock a "buy" rating in a research report on Thursday, July 24th. Rosenblatt Securities lifted their price objective on shares of Pegasystems from $56.00 to $59.00 and gave the stock a "buy" rating in a research note on Monday, July 21st. Wedbush boosted their target price on shares of Pegasystems from $68.00 to $70.00 and gave the stock an "outperform" rating in a report on Thursday, July 24th. Finally, JMP Securities boosted their target price on shares of Pegasystems from $55.00 to $62.50 and gave the company a "market outperform" rating in a research report on Tuesday, June 3rd. Seven analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, Pegasystems has a consensus rating of "Moderate Buy" and a consensus price target of $61.83.

Pegasystems Stock Down 1.4%

Shares of PEGA traded down $0.70 on Friday, hitting $51.12. 945,660 shares of the stock traded hands, compared to its average volume of 1,691,219. The firm has a market capitalization of $8.75 billion, a P/E ratio of 43.88 and a beta of 1.10. Pegasystems has a 1 year low of $29.84 and a 1 year high of $60.96. The stock's 50 day moving average is $53.23 and its two-hundred day moving average is $46.10.

Pegasystems (NASDAQ:PEGA - Get Free Report) last released its quarterly earnings data on Tuesday, July 22nd. The technology company reported $0.28 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.24 by $0.04. The company had revenue of $384.51 million during the quarter, compared to analyst estimates of $345.07 million. Pegasystems had a net margin of 13.14% and a return on equity of 42.42%. The business's quarterly revenue was up 9.5% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.26 earnings per share. Research analysts forecast that Pegasystems will post 1.89 EPS for the current year.

Insiders Place Their Bets

In related news, Chairman Alan Trefler sold 63,000 shares of the firm's stock in a transaction that occurred on Tuesday, May 27th. The stock was sold at an average price of $48.25, for a total transaction of $3,039,750.00. Following the completion of the sale, the chairman directly owned 34,243,120 shares of the company's stock, valued at approximately $1,652,230,540. This trade represents a 0.18% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider John Gerard Higgins sold 23,660 shares of Pegasystems stock in a transaction on Thursday, June 12th. The shares were sold at an average price of $51.1150, for a total value of $1,209,380.90. Following the completion of the transaction, the insider owned 38,026 shares in the company, valued at $1,943,698.99. This represents a 38.36% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 306,196 shares of company stock valued at $17,559,562. Company insiders own 49.70% of the company's stock.

Hedge Funds Weigh In On Pegasystems

Several institutional investors and hedge funds have recently modified their holdings of PEGA. Newbridge Financial Services Group Inc. purchased a new stake in Pegasystems during the 2nd quarter worth approximately $380,000. Ranger Investment Management L.P. lifted its stake in Pegasystems by 75.9% during the second quarter. Ranger Investment Management L.P. now owns 1,121,350 shares of the technology company's stock worth $60,699,000 after purchasing an additional 483,745 shares in the last quarter. Marex Group plc acquired a new position in Pegasystems during the second quarter worth $222,000. Advisory Services Network LLC acquired a new stake in shares of Pegasystems in the second quarter valued at $800,000. Finally, Nomura Holdings Inc. raised its stake in shares of Pegasystems by 83.2% in the second quarter. Nomura Holdings Inc. now owns 13,566 shares of the technology company's stock valued at $734,000 after acquiring an additional 6,161 shares in the last quarter. Institutional investors and hedge funds own 46.89% of the company's stock.

Pegasystems Company Profile

Pegasystems Inc develops, markets, licenses, hosts, and supports enterprise software in the United States, rest of the Americas, the United Kingdom, rest of Europe, the Middle East, Africa, and the Asia-Pacific. The company provides Pega Infinity, a software portfolio comprising of Pega Customer Decision Hub, a real-time AI-powered decision engine to enhance customer acquisition and experiences across inbound, outbound, and paid media channels; Pega Customer Service to anticipate customer needs, connect customers to people and systems, and automate customer interactions to evolve the customer service experience, as well as to allow enterprises to deliver interactions across channels and enhance employee productivity; and Pega Platform, an intelligent automation software for increasing efficiency of clients' processes and workflows.