Pegasystems (NASDAQ:PEGA) Trading Down 6.8% - What's Next?

Key Points

• Pegasystems Inc. (NASDAQ:PEGA) experienced a 6.8% drop in stock price, falling to $61.14 from a previous close of $65.59, with trading volume down 75% from its average.
• Despite the stock decline, several analysts maintain a positive outlook, with an average price target of $69.61 and a ratings consensus of "Moderate Buy".
• Pegasystems also declared a quarterly dividend of $0.03 per share, translating to an annual yield of 0.2%, while institutional investors hold about 46.89% of the company's stock.

Pegasystems Inc. (NASDAQ:PEGA - Get Free Report)'s stock price dropped 6.8% during trading on Thursday . The company traded as low as $61.36 and last traded at $61.14. Approximately 459,071 shares were traded during trading, a decline of 75% from the average daily volume of 1,835,110 shares. The stock had previously closed at $65.59.

Wall Street Analysts Forecast Growth

A number of equities analysts have issued reports on the company. Weiss Ratings reiterated a "hold (c+)" rating on shares of Pegasystems in a report on Wednesday, October 8th. Royal Bank Of Canada restated an "outperform" rating and issued a $80.00 target price (up previously from $70.00) on shares of Pegasystems in a research note on Wednesday. Barclays boosted their target price on Pegasystems from $58.00 to $67.00 and gave the company an "equal weight" rating in a research note on Thursday. Citigroup lifted their price objective on shares of Pegasystems from $66.00 to $70.00 and gave the company a "buy" rating in a report on Thursday, July 24th. Finally, Wedbush lifted their price objective on shares of Pegasystems from $70.00 to $75.00 and gave the company an "outperform" rating in a report on Thursday. Eight investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. Based on data from MarketBeat, Pegasystems has an average rating of "Moderate Buy" and an average price target of $69.61.

Pegasystems Stock Performance

The stock's fifty day moving average price is $55.94 and its 200-day moving average price is $51.06. The company has a market capitalization of $10.82 billion, a P/E ratio of 42.45 and a beta of 1.08.

Pegasystems (NASDAQ:PEGA - Get Free Report) last announced its quarterly earnings results on Tuesday, October 21st. The technology company reported $0.30 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.18 by $0.12. Pegasystems had a return on equity of 43.30% and a net margin of 16.05%.The business had revenue of $381.35 million during the quarter, compared to the consensus estimate of $351.95 million. During the same quarter last year, the firm posted $0.39 EPS. The company's quarterly revenue was up 17.3% on a year-over-year basis. On average, research analysts predict that Pegasystems Inc. will post 1.89 EPS for the current fiscal year.

Pegasystems Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, October 15th. Stockholders of record on Wednesday, October 1st were issued a dividend of $0.03 per share. This represents a $0.12 dividend on an annualized basis and a dividend yield of 0.2%. The ex-dividend date was Wednesday, October 1st. Pegasystems's payout ratio is currently 10.34%.

Insider Buying and Selling at Pegasystems

In related news, insider Rifat Kerim Akgonul sold 4,000 shares of Pegasystems stock in a transaction that occurred on Monday, September 8th. The stock was sold at an average price of $56.97, for a total transaction of $227,880.00. Following the completion of the sale, the insider directly owned 70,717 shares of the company's stock, valued at approximately $4,028,747.49. This trade represents a 5.35% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CFO Kenneth Stillwell sold 11,147 shares of Pegasystems stock in a transaction that occurred on Monday, August 4th. The stock was sold at an average price of $58.19, for a total value of $648,643.93. Following the sale, the chief financial officer directly owned 119,868 shares of the company's stock, valued at approximately $6,975,118.92. The trade was a 8.51% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 122,728 shares of company stock worth $7,073,070 in the last 90 days. Company insiders own 49.70% of the company's stock.

Hedge Funds Weigh In On Pegasystems

Several institutional investors and hedge funds have recently modified their holdings of PEGA. Spire Wealth Management boosted its holdings in Pegasystems by 274.2% in the 2nd 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. Mather Group LLC. bought a new position in Pegasystems during the 3rd quarter worth $33,000. SBI Securities Co. Ltd. increased its stake in Pegasystems by 139.7% during the 1st quarter. SBI Securities Co. Ltd. now owns 549 shares of the technology company's stock worth $38,000 after acquiring an additional 320 shares during the period. MAI Capital Management increased its stake in Pegasystems by 124.5% during the 2nd quarter. MAI Capital Management now owns 696 shares of the technology company's stock worth $38,000 after acquiring an additional 386 shares during the period. Finally, Blue Trust Inc. grew its holdings in shares of Pegasystems by 902.9% during the 3rd quarter. Blue Trust Inc. now owns 682 shares of the technology company's stock worth $39,000 after purchasing an additional 614 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.

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