Pegasystems (NASDAQ:PEGA) Releases Quarterly Earnings Results, Misses Expectations By $0.08 EPS

Key Points

• Pegasystems missed quarterly expectations, reporting earnings of $0.35 per share versus the $0.43 consensus estimate, and revenue of $420.72 million versus expectations of $427.38 million.
• The stock traded lower after the report, falling to $30.94 on heavy volume, near its 52-week low of $28.66 and well below its 200-day moving average of $40.44.
• Despite the earnings miss, analysts remain generally constructive: eight rate the stock Buy and three Hold, with a consensus target price of $63.30.

Pegasystems (NASDAQ:PEGA - Get Free Report) issued its quarterly earnings results on Tuesday. The technology company reported $0.35 earnings per share for the quarter, missing the consensus estimate of $0.43 by ($0.08), FiscalAI reports. Pegasystems had a return on equity of 30.05% and a net margin of 20.04%.The company had revenue of $420.72 million for the quarter, compared to analysts' expectations of $427.38 million.

Pegasystems Stock Performance

Shares of Pegasystems stock traded down $0.75 during trading on Tuesday, hitting $30.94. 5,224,963 shares of the stock traded hands, compared to its average volume of 2,269,694. The stock has a market cap of $5.17 billion, a P/E ratio of 16.63 and a beta of 0.87. The company has a fifty day moving average price of $32.61 and a two-hundred day moving average price of $40.44. Pegasystems has a twelve month low of $28.66 and a twelve month high of $68.10.

Pegasystems Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, July 15th. Investors of record on Wednesday, July 1st were given a dividend of $0.03 per share. The ex-dividend date of this dividend was Wednesday, July 1st. This represents a $0.12 dividend on an annualized basis and a yield of 0.4%. Pegasystems's dividend payout ratio (DPR) is presently 6.45%.

Insider Buying and Selling

In other news, CAO Efstathios A. Kouninis sold 750 shares of the stock in a transaction 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 sale, the chief accounting officer owned 2,144 shares in the company, valued at approximately $79,306.56. This represents a 25.92% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Rifat Kerim Akgonul sold 4,545 shares of Pegasystems stock in a transaction that occurred on Tuesday, May 19th. The stock was sold at an average price of $33.35, for a total transaction of $151,575.75. Following the transaction, the insider directly owned 107,070 shares in the company, valued at $3,570,784.50. The trade was a 4.07% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 6,795 shares of company stock worth $229,613. 48.40% of the stock is owned by corporate insiders.

Institutional Trading of Pegasystems

Institutional investors have recently bought and sold shares of the business. EFG International AG acquired a new position in Pegasystems during the 4th quarter worth approximately $32,000. Brown Brothers Harriman & Co. increased its position in Pegasystems by 386.3% during 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 during the period. Transamerica Financial Advisors LLC boosted its position in Pegasystems by 89.3% during the fourth quarter. Transamerica Financial Advisors LLC now owns 1,473 shares of the technology company's stock valued at $88,000 after acquiring an additional 695 shares during the last quarter. Aster Capital Management DIFC Ltd acquired a new stake in Pegasystems during the fourth quarter worth approximately $100,000. Finally, DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main increased its stake in shares of Pegasystems by 100.0% in the 2nd quarter. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main now owns 1,848 shares of the technology company's stock valued at $100,000 after acquiring an additional 924 shares in the last quarter. Institutional investors own 46.89% of the company's stock.

Wall Street Analyst Weigh In

Several analysts have recently weighed in on the stock. Wedbush restated an "outperform" rating and set a $60.00 price objective on shares of Pegasystems in a research report on Thursday, April 23rd. Rosenblatt Securities restated a "buy" rating and set a $58.00 price target on shares of Pegasystems in a research note on Thursday, July 16th. Citizens Jmp restated a "market outperform" rating and issued a $58.00 price objective on shares of Pegasystems in a research report on Wednesday, June 10th. DA Davidson restated a "buy" rating and set a $55.00 target price on shares of Pegasystems in a research report on Wednesday, June 10th. Finally, Royal Bank Of Canada restated an "outperform" rating on shares of Pegasystems in a report on Tuesday, June 9th. Eight research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $63.30.

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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