Wedbush Has Optimistic Outlook of Pegasystems Q4 Earnings

Key Points

• Analysts at Wedbush have raised their Q4 2025 earnings per share (EPS) estimate for Pegasystems to $0.54, up from a previous expectation of $0.51, maintaining an "Outperform" rating with a price target of $70.00.
• Pegasystems reported earnings of $0.28 EPS for the latest quarter, exceeding the consensus estimate of $0.24, with revenue of $384.51 million, representing a 9.5% increase year-over-year.
• Insider trading activity showed that CFO Kenneth Stillwell sold 4,000 shares, indicating a 7.50% decrease in ownership, while institutional investors collectively held 46.89% of the stock.

Pegasystems Inc. (NASDAQ:PEGA - Free Report) - Equities researchers at Wedbush increased their Q4 2025 earnings per share estimates for Pegasystems in a research report issued on Thursday, July 24th. Wedbush analyst D. Ives now anticipates that the technology company will post earnings of $0.54 per share for the quarter, up from their prior estimate of $0.51. Wedbush has a "Outperform" rating and a $70.00 price objective on the stock. The consensus estimate for Pegasystems' current full-year earnings is $1.89 per share. Wedbush also issued estimates for Pegasystems' Q2 2026 earnings at $0.23 EPS and Q4 2026 earnings at $0.54 EPS.

Several other brokerages also recently issued reports on PEGA. DA Davidson upped their price target on Pegasystems from $50.00 to $60.00 and gave the stock a "neutral" rating in a report on Thursday, July 24th. Citigroup increased their price target on Pegasystems from $66.00 to $70.00 and gave the stock a "buy" rating in a research note on Thursday, July 24th. Rosenblatt Securities upped their price target on Pegasystems from $56.00 to $59.00 and gave the company a "buy" rating in a research report on Monday, July 21st. Royal Bank Of Canada reiterated an "outperform" rating and set a $60.00 price target on shares of Pegasystems in a research report on Tuesday, June 3rd. Finally, Loop Capital raised their price objective on Pegasystems from $60.00 to $70.00 and gave the company a "buy" rating in a report on Thursday, July 24th. Two equities research analysts have rated the stock with a hold rating and ten have issued a buy rating to the company. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $59.80.

Pegasystems Trading Up 0.1%

Pegasystems stock traded up $0.03 during trading on Friday, hitting $59.98. 943,020 shares of the company were exchanged, compared to its average volume of 2,029,975. The business's 50 day moving average is $51.50 and its 200 day moving average is $45.74. Pegasystems has a 52 week low of $29.84 and a 52 week high of $60.46. The company has a market capitalization of $10.26 billion, a P/E ratio of 51.45 and a beta of 1.13.

Pegasystems (NASDAQ:PEGA - Get Free Report) last released its quarterly earnings data on Tuesday, July 22nd. The technology company reported $0.28 EPS for the quarter, beating the consensus estimate of $0.24 by $0.04. The firm had revenue of $384.51 million during the quarter, compared to the consensus estimate of $345.07 million. Pegasystems had a return on equity of 42.42% and a net margin of 13.14%. The company's quarterly revenue was up 9.5% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.26 earnings per share.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. CX Institutional purchased a new position in shares of Pegasystems in the first quarter worth $36,000. SBI Securities Co. Ltd. increased its position in Pegasystems by 139.7% during the first quarter. SBI Securities Co. Ltd. now owns 549 shares of the technology company's stock valued at $38,000 after acquiring an additional 320 shares during the last quarter. GAMMA Investing LLC increased its position in Pegasystems by 50.5% during the first quarter. GAMMA Investing LLC now owns 599 shares of the technology company's stock valued at $42,000 after acquiring an additional 201 shares during the last quarter. UMB Bank n.a. increased its position in Pegasystems by 159.8% during the second quarter. UMB Bank n.a. now owns 730 shares of the technology company's stock valued at $40,000 after acquiring an additional 449 shares during the last quarter. Finally, Headlands Technologies LLC purchased a new stake in Pegasystems in the first quarter worth about $57,000. Hedge funds and other institutional investors own 46.89% of the company's stock.

Insiders Place Their Bets

In other Pegasystems news, Chairman Alan Trefler sold 45,000 shares of the business's stock in a transaction on Wednesday, July 9th. The stock was sold at an average price of $53.34, for a total value of $2,400,300.00. Following the sale, the chairman directly owned 33,051,692 shares of the company's stock, valued at approximately $1,762,977,251.28. The trade was a 0.14% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO Kenneth Stillwell sold 4,000 shares of the business's stock in a transaction on Tuesday, July 1st. The stock was sold at an average price of $52.64, for a total value of $210,560.00. Following the completion of the sale, the chief financial officer directly owned 49,350 shares in the company, valued at $2,597,784. This trade represents a 7.50% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 251,467 shares of company stock valued at $14,340,547. Company insiders own 50.10% of the company's stock.

Pegasystems Increases Dividend

The business also recently announced 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 annualized dividend and a yield of 0.20%. This is an increase from Pegasystems's previous quarterly dividend of $0.02. The ex-dividend date of this dividend was Tuesday, July 1st. Pegasystems's payout ratio is 10.34%.

Pegasystems Company Profile

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.