Pegasystems (NASDAQ:PEGA) Stock Price Down 11.2% - Here's Why

Key Points

• Pegasystems shares plunged about 11.2% intraday to roughly $43.81 (from a $49.35 close) on Thursday, with trading volume about 56% below the stock's average daily volume.
• Analysts remain broadly positive with a MarketBeat consensus of "Moderate Buy" and an average price target of $70.05, while several firms (Barclays, Wedbush, RBC) have recently raised their price targets.
• Insiders have been net sellers—selling 164,847 shares (~$9.31M) over the past three months—despite insiders owning about 49.7% of the company; institutional ownership is also high (~46.9%) with several funds materially increasing positions.

Pegasystems Inc. (NASDAQ:PEGA - Get Free Report) was down 11.2% during mid-day trading on Thursday . The company traded as low as $44.08 and last traded at $43.8110. Approximately 621,490 shares were traded during mid-day trading, a decline of 56% from the average daily volume of 1,426,237 shares. The stock had previously closed at $49.35.

Analysts Set New Price Targets

Several analysts have recently commented on the company. Wall Street Zen downgraded Pegasystems from a "strong-buy" rating to a "buy" rating in a research note on Saturday, November 22nd. Barclays upped their price target on Pegasystems from $58.00 to $67.00 and gave the company an "equal weight" rating in a research report on Thursday, October 23rd. Weiss Ratings reiterated a "hold (c+)" rating on shares of Pegasystems in a research note on Monday, December 29th. Wedbush increased their price objective on Pegasystems from $70.00 to $75.00 and gave the stock an "outperform" rating in a research report on Thursday, October 23rd. Finally, Royal Bank Of Canada restated an "outperform" rating and set a $80.00 price target (up previously from $70.00) on shares of Pegasystems in a research report on Wednesday, October 22nd. Nine investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, Pegasystems currently has an average rating of "Moderate Buy" and an average target price of $70.05.

Pegasystems Trading Down 11.4%

The firm has a 50 day moving average of $56.93 and a two-hundred day moving average of $56.75. The company has a market cap of $7.42 billion, a PE ratio of 29.37 and a beta of 1.08.

Pegasystems Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, January 16th. Stockholders of record on Friday, January 2nd were paid a $0.03 dividend. The ex-dividend date was Friday, January 2nd. This represents a $0.12 dividend on an annualized basis and a dividend yield of 0.3%. Pegasystems's payout ratio is currently 8.05%.

Insiders Place Their Bets

In related news, insider Rifat Kerim Akgonul sold 4,000 shares of the stock in a transaction that occurred on Monday, December 8th. The shares were sold at an average price of $60.19, for a total value of $240,760.00. Following the completion of the sale, the insider directly owned 112,845 shares of the company's stock, valued at approximately $6,792,140.55. This represents a 3.42% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO Kenneth Stillwell sold 14,405 shares of the company's stock in a transaction dated Friday, December 5th. The stock was sold at an average price of $57.87, for a total value of $833,617.35. Following the completion of the transaction, the chief financial officer directly owned 131,621 shares of the company's stock, valued at approximately $7,616,907.27. This trade represents a 9.86% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 164,847 shares of company stock valued at $9,308,941. Insiders own 49.70% of the company's stock.

Institutional Trading of Pegasystems

Hedge funds have recently modified their holdings of the company. AQR Capital Management LLC raised its position in shares of Pegasystems by 236.2% during the 2nd quarter. AQR Capital Management LLC now owns 4,037,552 shares of the technology company's stock valued at $217,584,000 after buying an additional 2,836,733 shares in the last quarter. State Street Corp lifted its position in shares of Pegasystems by 255.3% in the 2nd quarter. State Street Corp now owns 2,907,677 shares of the technology company's stock worth $157,393,000 after purchasing an additional 2,089,375 shares during the period. Massachusetts Financial Services Co. MA increased its holdings in shares of Pegasystems by 86.3% in the 2nd quarter. Massachusetts Financial Services Co. MA now owns 4,050,075 shares of the technology company's stock valued at $219,231,000 after acquiring an additional 1,875,896 shares during the period. Bares Capital Management Inc. grew its stake in Pegasystems by 76.6% in the second quarter. Bares Capital Management Inc. now owns 3,542,716 shares of the technology company's stock valued at $191,767,000 after purchasing an additional 1,536,726 shares during the last quarter. Finally, American Century Companies Inc. boosted its holdings in Pegasystems by 357.6% in the third quarter. American Century Companies Inc. now owns 1,586,793 shares of the technology company's stock worth $91,241,000 after acquiring an additional 1,239,998 shares in the last quarter. 46.89% of the stock is owned by hedge funds and other institutional investors.

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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