Pegasystems (NASDAQ:PEGA) Price Target Cut to $47.00 by Analysts at Rosenblatt Securities

Key Points

• Rosenblatt Securities cut Pegasystems’ price target from $58 to $47, while keeping a buy rating on the stock. The new target still implies significant upside from the previous close.
• Wall Street sentiment has weakened overall, with several firms recently downgrading PEGA or trimming their targets. The broader analyst consensus now sits at a Hold rating with an average price target of about $54.90.
• Pegasystems also reported a weak quarter, missing both EPS and revenue estimates. The stock was down sharply, reflecting concerns around slowing demand and customer purchase delays tied to AI-related changes.

Pegasystems (NASDAQ:PEGA - Get Free Report) had its price target reduced by Rosenblatt Securities from $58.00 to $47.00 in a research report issued to clients and investors on Thursday,Benzinga reports. The brokerage currently has a "buy" rating on the technology company's stock. Rosenblatt Securities' price objective would indicate a potential upside of 80.84% from the stock's previous close.

A number of other equities analysts also recently commented on PEGA. William Blair downgraded shares of Pegasystems from an "outperform" rating to a "market perform" rating in a research note on Wednesday. DA Davidson reaffirmed a "buy" rating and issued a $55.00 target price on shares of Pegasystems in a research report on Wednesday, June 10th. Citigroup lowered Pegasystems from a "market outperform" rating to a "market perform" rating in a report on Wednesday. Loop Capital cut Pegasystems from a "buy" rating to a "hold" rating and reduced their price target for the company from $55.00 to $25.00 in a research report on Thursday. Finally, Citizens Jmp downgraded Pegasystems from an "outperform" rating to a "market perform" rating in a research note on Wednesday. Six equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $54.90.

Pegasystems Stock Down 16.0%

NASDAQ PEGA opened at $25.99 on Thursday. The firm's 50 day moving average is $32.42 and its 200-day moving average is $40.00. The company has a market capitalization of $4.34 billion, a PE ratio of 14.68 and a beta of 0.87. Pegasystems has a 12-month low of $25.10 and a 12-month high of $68.10.

Pegasystems (NASDAQ:PEGA - Get Free Report) last announced 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). The business had revenue of $420.72 million for the quarter, compared to analyst estimates of $427.38 million. Pegasystems had a return on equity of 30.63% and a net margin of 18.66%.The business's revenue for the quarter was up 9.4% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.28 EPS. As a group, sell-side analysts expect that Pegasystems will post 1.93 EPS for the current year.

Insider Transactions at Pegasystems

In other Pegasystems news, CAO Efstathios A. Kouninis sold 750 shares of the business's stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $36.99, for a total transaction of $27,742.50. Following the transaction, the chief accounting officer owned 2,144 shares of the company's stock, valued at $79,306.56. The trade was a 25.92% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Rifat Kerim Akgonul sold 4,545 shares of the business's stock in a transaction that occurred on 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 approximately $3,570,784.50. This trade represents a 4.07% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 6,795 shares of company stock worth $229,613. 48.40% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in PEGA. International Assets Investment Management LLC bought a new position in Pegasystems during the fourth quarter worth $28,000. EFG International AG bought a new position in shares of Pegasystems in the fourth quarter valued at about $32,000. Fifth Third Bancorp lifted its stake in shares of 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 buying an additional 303 shares during the last quarter. Bayforest Capital Ltd boosted its holdings in shares of 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 buying an additional 535 shares during the period. Finally, Brown Brothers Harriman & Co. grew its stake 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 buying an additional 564 shares during the last quarter. 46.89% of the stock is owned by institutional investors and hedge funds.

Pegasystems News Roundup

Here are the key news stories impacting Pegasystems this week:

• Positive Sentiment: Analysts said near-term weakness may be temporary, with one buy-rated view arguing that PEGA’s cloud momentum and recurring revenue make the post-earnings selloff look like a potential entry point. Article Title
• Positive Sentiment: Pega highlighted its new Pega Infinity 26 launch and said the platform’s AI approach could support its long-term value proposition, with some commentary suggesting the stock may be undervalued after the selloff. Article Title
• Neutral Sentiment: The company also outlined a long-term free cash flow target of more than $700 million by 2028, which supports the bull case but does not offset the immediate earnings disappointment. Article Title
• Negative Sentiment: Pegasystems missed Q2 estimates on both EPS and revenue, with adjusted EPS of $0.35 versus $0.43 expected and revenue of about $420.7 million versus $427.4 million expected. Article Title
• Negative Sentiment: Management said AI-related changes are causing customers to delay purchases, slowing ACV growth and creating concern that demand could stay under pressure through the rest of 2026. Article Title
• Negative Sentiment: The stock was also hit by a downgrade from Citizens JMP, which cut its rating from outperform to market perform following the weak quarter. Article Title

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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