What is DA Davidson's Forecast for Pegasystems Q3 Earnings?

Key Points

• DA Davidson estimates Pegasystems will report earnings of $0.03 per share for Q3 2025, maintaining a "Neutral" rating with a price target of $60.00.
• Pegasystems recently reported a quarterly earnings of $0.28 per share, exceeding analysts' expectations and reflecting a 9.5% year-over-year revenue increase.
• The company raised its quarterly dividend from $0.02 to $0.03 per share, indicating a positive shift in its dividend policy.

Pegasystems Inc. (NASDAQ:PEGA - Free Report) - Analysts at DA Davidson issued their Q3 2025 earnings per share estimates for Pegasystems in a research note issued on Thursday, July 24th. DA Davidson analyst G. Luria expects that the technology company will post earnings per share of $0.03 for the quarter. DA Davidson has a "Neutral" rating and a $60.00 price target on the stock. The consensus estimate for Pegasystems' current full-year earnings is $1.89 per share. DA Davidson also issued estimates for Pegasystems' FY2025 earnings at $1.42 EPS and FY2026 earnings at $1.38 EPS.

Other equities analysts have also issued reports about the company. Wedbush raised their target price on Pegasystems from $68.00 to $70.00 and gave the company an "outperform" rating in a report on Thursday. Royal Bank Of Canada restated an "outperform" rating and set a $60.00 target price on shares of Pegasystems in a report on Tuesday, June 3rd. Rosenblatt Securities raised their target price on Pegasystems from $56.00 to $59.00 and gave the company a "buy" rating in a report on Monday, July 21st. Citigroup raised their target price on Pegasystems from $66.00 to $70.00 and gave the company a "buy" rating in a report on Thursday. Finally, Wall Street Zen lowered Pegasystems from a "strong-buy" rating to a "buy" rating in a report on Saturday. Two research analysts have rated the stock with a hold rating and ten have given a buy rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $59.80.

Pegasystems Trading Up 1.6%

NASDAQ PEGA traded up $0.94 during trading on Friday, hitting $59.77. 531,470 shares of the company traded hands, compared to its average volume of 2,028,075. Pegasystems has a 12 month low of $29.84 and a 12 month high of $59.85. The business has a fifty day simple moving average of $51.29 and a 200 day simple moving average of $45.65. The company has a market capitalization of $10.23 billion, a P/E ratio of 51.28 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 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.24 by $0.04. Pegasystems had a return on equity of 42.42% and a net margin of 13.14%. The firm had revenue of $384.51 million during the quarter, compared to analysts' expectations of $345.07 million. During the same quarter last year, the firm earned $0.26 earnings per share. The business's revenue for the quarter was up 9.5% on a year-over-year basis.

Institutional Investors Weigh In On Pegasystems

A number of institutional investors have recently added to or reduced their stakes in the company. Invesco Ltd. boosted its holdings in Pegasystems by 189.0% during the fourth quarter. Invesco Ltd. now owns 2,364,242 shares of the technology company's stock valued at $220,347,000 after purchasing an additional 1,546,281 shares in the last quarter. Massachusetts Financial Services Co. MA acquired a new stake in Pegasystems during the first quarter valued at approximately $151,149,000. TPG GP A LLC boosted its holdings in Pegasystems by 4.3% during the first quarter. TPG GP A LLC now owns 2,022,733 shares of the technology company's stock valued at $140,620,000 after purchasing an additional 82,845 shares in the last quarter. AQR Capital Management LLC boosted its holdings in Pegasystems by 60.1% during the first quarter. AQR Capital Management LLC now owns 1,200,819 shares of the technology company's stock valued at $81,337,000 after purchasing an additional 450,951 shares in the last quarter. Finally, Jacobs Levy Equity Management Inc. acquired a new stake in Pegasystems during the first quarter valued at approximately $68,229,000. 46.89% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling at Pegasystems

In related news, CAO Efstathios A. Kouninis sold 1,196 shares of Pegasystems stock in a transaction dated Thursday, June 5th. The stock was sold at an average price of $51.50, for a total transaction of $61,594.00. Following the sale, the chief accounting officer directly owned 332 shares of the company's stock, valued at $17,098. This trade represents a 78.27% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Chairman Alan Trefler sold 45,000 shares of Pegasystems stock in a transaction dated 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 in the company, valued at approximately $1,762,977,251.28. This trade represents a 0.14% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 241,588 shares of company stock valued at $13,769,343 over the last quarter. Company insiders own 50.10% of the company's stock.

Pegasystems Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, July 15th. Investors of record on Tuesday, July 1st were given a dividend of $0.03 per share. The ex-dividend date of this dividend was Tuesday, July 1st. This is an increase from Pegasystems's previous quarterly dividend of $0.02. This represents a $0.12 dividend on an annualized basis and a yield of 0.20%. Pegasystems's dividend payout ratio (DPR) is 10.34%.

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.