Pegasystems (NASDAQ:PEGA) Releases Earnings Results, Misses Estimates By $0.22 EPS

Key Points

• Pegasystems reported $0.46 EPS, missing consensus by $0.22 (est. $0.68) and posted revenue of $429.97M versus estimates of $473.24M, while maintaining a net margin of 22.54% and ROE of 38.86%.
• Shares dropped about $4.51 to $39.29 on heavy volume (≈5.4M vs. avg. 2.24M), trading nearer its 1‑year low and reflecting the market reaction to the miss.
• Insiders have sold sizable positions (≈97,594 shares in the last 90 days, including the CFO’s 44,000-share sale), and analysts have trimmed targets even as the consensus rating remains a “Moderate Buy” with an average target of $64.10.

Pegasystems (NASDAQ:PEGA - Get Free Report) announced its quarterly earnings data on Tuesday. The technology company reported $0.46 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.68 by ($0.22), FiscalAI reports. Pegasystems had a net margin of 22.54% and a return on equity of 38.86%. The business had revenue of $429.97 million during the quarter, compared to analyst estimates of $473.24 million.

Pegasystems Stock Performance

NASDAQ PEGA traded down $4.51 during mid-day trading on Tuesday, reaching $39.29. 5,403,679 shares of the stock were exchanged, compared to its average volume of 2,242,711. Pegasystems has a 1 year low of $33.56 and a 1 year high of $68.10. The business's 50 day moving average is $43.10 and its 200-day moving average is $51.61. The company has a market capitalization of $6.64 billion, a P/E ratio of 18.40 and a beta of 1.09.

Pegasystems Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, April 15th. Stockholders of record on Wednesday, April 1st were paid a dividend of $0.03 per share. The ex-dividend date of this dividend was Wednesday, April 1st. This represents a $0.12 dividend on an annualized basis and a dividend yield of 0.3%. Pegasystems's dividend payout ratio (DPR) is presently 5.63%.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on PEGA shares. Wedbush dropped their target price on Pegasystems from $75.00 to $60.00 and set an "outperform" rating on the stock in a research report on Thursday, February 12th. Wall Street Zen downgraded Pegasystems from a "strong-buy" rating to a "hold" rating in a report on Saturday, February 14th. Citigroup cut their target price on shares of Pegasystems from $75.00 to $70.00 and set a "buy" rating for the company in a research report on Tuesday, April 14th. Citizens Jmp dropped their price target on Pegasystems from $78.00 to $58.00 and set a "market outperform" rating for the company in a research note on Thursday, February 12th. Finally, DA Davidson set a $55.00 target price on shares of Pegasystems and gave the stock a "buy" rating in a report on Friday. One research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $64.10.

Insiders Place Their Bets

In related news, CFO Kenneth Stillwell sold 44,000 shares of the business's stock in a transaction dated Tuesday, March 10th. The shares were sold at an average price of $44.81, for a total transaction of $1,971,640.00. Following the transaction, the chief financial officer directly owned 109,123 shares in the company, valued at approximately $4,889,801.63. The trade was a 28.74% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, CAO Efstathios A. Kouninis sold 1,000 shares of the company's stock in a transaction that occurred on Tuesday, March 17th. The shares were sold at an average price of $42.88, for a total value of $42,880.00. Following the completion of the sale, the chief accounting officer owned 3,365 shares of the company's stock, valued at $144,291.20. This trade represents a 22.91% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 97,594 shares of company stock valued at $4,549,924. Corporate insiders own 50.10% of the company's stock.

Institutional Trading of Pegasystems

A number of hedge funds and other institutional investors have recently modified their holdings of the business. NewEdge Advisors LLC increased its position in shares of Pegasystems by 1.4% during the third quarter. NewEdge Advisors LLC now owns 13,652 shares of the technology company's stock worth $785,000 after acquiring an additional 189 shares during the period. Amundi raised its stake in shares of Pegasystems by 0.6% during the 4th quarter. Amundi now owns 39,881 shares of the technology company's stock worth $2,382,000 after buying an additional 249 shares during the last quarter. Vinva Investment Management Ltd boosted its position in shares of Pegasystems by 8.4% in the 4th quarter. Vinva Investment Management Ltd now owns 4,048 shares of the technology company's stock worth $242,000 after buying an additional 314 shares in the last quarter. Advisory Services Network LLC grew its stake in Pegasystems by 1.6% in the 4th quarter. Advisory Services Network LLC now owns 25,178 shares of the technology company's stock valued at $1,504,000 after acquiring an additional 407 shares during the last quarter. Finally, EFG International AG purchased a new position in Pegasystems during the 4th quarter valued at about $32,000. 46.89% of the stock is owned by institutional investors and hedge funds.

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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