Rosenblatt Securities Reiterates "Buy" Rating for Pegasystems (NASDAQ:PEGA)

Key Points

• Rosenblatt Securities reiterated a Buy rating on Pegasystems and kept a $58 price target, implying about 69.8% upside from the stock’s current price.
• Other analysts were mixed: some maintained bullish views, while others downgraded the stock. Overall, Pegasystems has an average analyst rating of Moderate Buy with a $63.30 average target price.
• Pegasystems recently reported weaker-than-expected quarterly results, missing EPS and revenue estimates, while insider selling and notable institutional buying both appeared in recent filings.

Pegasystems (NASDAQ:PEGA - Get Free Report)'s stock had its "buy" rating reiterated by investment analysts at Rosenblatt Securities in a report released on Wednesday,Benzinga reports. They presently have a $58.00 price objective on the technology company's stock. Rosenblatt Securities' price objective would suggest a potential upside of 69.79% from the stock's current price.

Several other research firms have also recently commented on PEGA. Wall Street Zen cut shares of Pegasystems from a "strong-buy" rating to a "hold" rating in a research report on Saturday, February 14th. DA Davidson set a $55.00 target price on Pegasystems and gave the company a "buy" rating in a report on Friday, April 17th. Weiss Ratings downgraded Pegasystems from a "hold (c+)" rating to a "hold (c)" rating in a research report on Thursday, June 4th. Citizens Jmp reiterated a "market outperform" rating and set a $58.00 price target on shares of Pegasystems in a report on Wednesday. Finally, Citigroup restated a "market outperform" rating on shares of Pegasystems in a research note on Wednesday. Eight research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $63.30.

Pegasystems Price Performance

PEGA opened at $34.16 on Wednesday. The company has a market capitalization of $5.71 billion, a price-to-earnings ratio of 18.37 and a beta of 0.86. The firm's fifty day moving average price is $37.46 and its two-hundred day moving average price is $46.01. Pegasystems has a 1 year low of $32.00 and a 1 year high of $68.10.

Pegasystems (NASDAQ:PEGA - Get Free Report) last announced its earnings results on Tuesday, April 21st. The technology company reported $0.46 EPS for the quarter, missing the consensus estimate of $0.68 by ($0.22). Pegasystems had a net margin of 20.04% and a return on equity of 30.05%. The firm had revenue of $429.97 million during the quarter, compared to analysts' expectations of $473.24 million. During the same quarter in the prior year, the company earned $0.76 EPS. The business's revenue for the quarter was down 9.6% on a year-over-year basis. As a group, equities analysts anticipate that Pegasystems will post 1.95 EPS for the current year.

Insider Buying and Selling at Pegasystems

In other Pegasystems news, insider Rifat Kerim Akgonul sold 7,594 shares of the firm's stock in a transaction on Monday, March 16th. The stock was sold at an average price of $43.39, for a total value of $329,503.66. Following the completion of the sale, the insider directly owned 111,429 shares of the company's stock, valued at $4,834,904.31. This trade represents a 6.38% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CAO Efstathios A. Kouninis sold 1,000 shares of the business's stock in a transaction 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 in the company, valued at approximately $144,291.20. The trade was a 22.91% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 14,639 shares of company stock valued at $577,764. 48.40% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Pegasystems

A number of institutional investors and hedge funds have recently added to or reduced their stakes in PEGA. AQR Capital Management LLC lifted its stake 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 raised its holdings in Pegasystems by 255.3% during the 2nd quarter. State Street Corp now owns 2,907,677 shares of the technology company's stock valued at $157,393,000 after acquiring an additional 2,089,375 shares during the period. American Century Companies Inc. lifted its position in shares of Pegasystems by 357.6% during 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. Copeland Capital Management LLC bought a new position in shares of Pegasystems in the first quarter worth $47,817,000. Finally, First Trust Advisors LP grew its position in shares of Pegasystems by 271.7% in the third quarter. First Trust Advisors LP now owns 1,111,736 shares of the technology company's stock valued at $63,925,000 after purchasing an additional 812,634 shares in the last quarter. Institutional investors own 46.89% of the company's stock.

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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