Pegasystems (NASDAQ:PEGA) Stock Price Crosses Above 200-Day Moving Average - What's Next?

Key Points

• Pegasystems Inc. (NASDAQ:PEGA) stock surpassed its 200-day moving average recently, trading as high as $53.46 before settling at $52.82.
• Several analysts have increased their target prices for Pegasystems shares, with Citigroup and Loop Capital both setting their targets at $70.00, reflecting a strong outlook for the stock.
• The company recently reported quarterly earnings of $0.28 per share, beating estimates, and saw a 9.5% increase in revenue compared to the previous year.

Pegasystems Inc. (NASDAQ:PEGA - Get Free Report)'s stock price crossed above its two hundred day moving average during trading on Monday . The stock has a two hundred day moving average of $45.99 and traded as high as $53.46. Pegasystems shares last traded at $52.82, with a volume of 963,309 shares trading hands.

Analysts Set New Price Targets

PEGA has been the subject of several recent analyst reports. Citigroup boosted their target price on Pegasystems from $66.00 to $70.00 and gave the company a "buy" rating in a research report on Thursday, July 24th. Rosenblatt Securities boosted their target price on Pegasystems from $56.00 to $59.00 and gave the company a "buy" rating in a research report on Monday, July 21st. Loop Capital boosted their price target on Pegasystems from $60.00 to $70.00 and gave the company a "buy" rating in a report on Thursday, July 24th. Wall Street Zen lowered Pegasystems from a "strong-buy" rating to a "buy" rating in a report on Sunday, August 17th. Finally, JMP Securities boosted their price target on Pegasystems from $55.00 to $62.50 and gave the company a "market outperform" rating in a report on Tuesday, June 3rd. Seven research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $61.83.

Pegasystems Price Performance

The stock has a market capitalization of $9.27 billion, a PE ratio of 46.53 and a beta of 1.10. The business's fifty day moving average price is $53.59 and its two-hundred day moving average price is $46.11.

Pegasystems (NASDAQ:PEGA - Get Free Report) last posted its quarterly earnings results on Tuesday, July 22nd. The technology company reported $0.28 EPS for the quarter, beating the consensus estimate of $0.24 by $0.04. Pegasystems had a net margin of 13.14% and a return on equity of 42.42%. The company had revenue of $384.51 million for the quarter, compared to analyst estimates of $345.07 million. During the same period in the prior year, the company earned $0.26 earnings per share. The firm's revenue was up 9.5% on a year-over-year basis. As a group, equities research analysts anticipate that Pegasystems Inc. will post 1.89 earnings per share for the current fiscal year.

Pegasystems Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, July 15th. Shareholders of record on Tuesday, July 1st were issued a $0.03 dividend. This represents a $0.12 dividend on an annualized basis and a yield of 0.2%. The ex-dividend date was Tuesday, July 1st. This is a positive change from Pegasystems's previous quarterly dividend of $0.02. Pegasystems's payout ratio is currently 10.34%.

Insider Buying and Selling at Pegasystems

In other news, insider John Gerard Higgins sold 23,660 shares of the firm's stock in a transaction that occurred on Thursday, June 12th. The shares were sold at an average price of $51.12, for a total transaction of $1,209,380.90. Following the completion of the sale, the insider owned 38,026 shares in the company, valued at $1,943,698.99. This trade represents a 38.36% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CAO Efstathios A. Kouninis sold 582 shares of the stock in a transaction that occurred on Monday, July 28th. The stock was sold at an average price of $59.65, for a total transaction of $34,716.30. The disclosure for this sale can be found here. Over the last three months, insiders have sold 243,196 shares of company stock worth $14,519,812. Insiders own 49.70% of the company's stock.

Institutional Investors Weigh In On Pegasystems

Several hedge funds and other institutional investors have recently bought and sold shares of PEGA. Spire Wealth Management increased its stake in Pegasystems by 274.2% in the second quarter. Spire Wealth Management now owns 565 shares of the technology company's stock valued at $31,000 after purchasing an additional 414 shares during the period. CX Institutional purchased a new stake in Pegasystems during the first quarter worth about $36,000. SBI Securities Co. Ltd. lifted its holdings in shares of Pegasystems by 139.7% in the first quarter. SBI Securities Co. Ltd. now owns 549 shares of the technology company's stock valued at $38,000 after purchasing an additional 320 shares in the last quarter. MAI Capital Management lifted its holdings in shares of Pegasystems by 124.5% in the second quarter. MAI Capital Management now owns 696 shares of the technology company's stock valued at $38,000 after purchasing an additional 386 shares in the last quarter. Finally, UMB Bank n.a. lifted its holdings in shares of Pegasystems by 159.8% in the second quarter. UMB Bank n.a. now owns 730 shares of the technology company's stock valued at $40,000 after purchasing an additional 449 shares in the last quarter. 46.89% of the stock is currently owned by institutional investors and hedge funds.

About Pegasystems

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.