Pegasystems (NASDAQ:PEGA) Shares Gap Down – Here’s What Happened

Pegasystems Inc. (NASDAQ:PEGA) shares gapped down prior to trading on Wednesday . The stock had previously closed at $43.03, but opened at $39.08. Pegasystems shares last traded at $37.1650, with a volume of 1,019,567 shares trading hands.

Key Headlines Impacting Pegasystems

Here are the key news stories impacting Pegasystems this week:

• Positive Sentiment: Barclays upgraded PEGA, citing accelerating Pega Cloud adoption and strong AI positioning after the recent selloff — the note frames current weakness as a buying opportunity. Barclays upgrade
• Positive Sentiment: Coverage highlighting Pegasystems’ strong 2025 results, legal relief and an enlarged buyback has shifted the investment narrative toward capital returns plus improving fundamentals. Strong 2025 results & buyback
• Positive Sentiment: Management reiterated growth ambitions (targeting $2B revenue) and emphasized “predictable AI” and cloud migration as the path to mid-teens ACV/revenue growth — a roadmap investors view as supportive of durable recurring revenue. $2B revenue target
• Positive Sentiment: Pegasystems is targeting ~15% ACV and revenue growth in 2026 as Pega Cloud adoption accelerates — a concrete growth guide that supports multiple expansion if execution continues. 2026 growth targets
• Positive Sentiment: Rosenblatt reaffirmed a buy rating with a $62 target, signaling at least some analyst conviction behind the recovery narrative. Rosenblatt reaffirmation
• Positive Sentiment: Intraday market commentary noted PEGA “making a mark” on Nasdaq as digital solutions momentum attracts trader interest. Nasdaq momentum
• Neutral Sentiment: Analysts and commentary are reassessing valuation after recent share?price weakness — useful context for longer?term investors but not an immediate catalyst. Valuation assessment
• Neutral Sentiment: Comparative coverage contrasts PEGA with peers (e.g., Trend Micro) — background reading for investors sizing competitive risk. Peer contrast
• Negative Sentiment: Wedbush cut its price target from $75 to $60 (still an outperform), reducing upside projection and signaling more conservative near?term expectations. Wedbush PT cut
• Negative Sentiment: Citizens Jmp lowered its target from $78 to $58, trimming analyst upside and reflecting continued analyst divergence on fair value. Citizens Jmp PT cut
• Negative Sentiment: Pegasystems agreed to pay $7M to resolve investors’ trade?secret claims — a modest one?time hit but a headline negative that briefly pressures sentiment. Legal settlement

Analysts Set New Price Targets

Several equities analysts recently issued reports on the company. KeyCorp set a $60.00 price target on Pegasystems in a research note on Thursday, February 5th. Rosenblatt Securities reaffirmed a “buy” rating and set a $62.00 price objective on shares of Pegasystems in a report on Thursday. Wedbush dropped their price objective on Pegasystems from $75.00 to $60.00 and set an “outperform” rating for the company in a research note on Thursday. JPMorgan Chase & Co. lifted their price target on shares of Pegasystems from $65.00 to $74.00 and gave the company an “overweight” rating in a report on Friday, December 5th. Finally, Citigroup reissued a “buy” rating and issued a $73.00 target price (down from $81.00) on shares of Pegasystems in a report on Thursday. Ten analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $66.95.

Pegasystems Trading Up 8.0%

The stock has a 50 day moving average price of $53.64 and a two-hundred day moving average price of $55.70. The company has a market cap of $7.41 billion, a price-to-earnings ratio of 20.54 and a beta of 1.07.

Pegasystems (NASDAQ:PEGA) last issued its earnings results on Tuesday, February 10th. The technology company reported $0.76 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.74 by $0.02. The firm had revenue of $504.32 million for the quarter, compared to analysts’ expectations of $494.60 million. Pegasystems had a return on equity of 38.86% and a net margin of 22.54%.The company’s revenue was up 2.8% compared to the same quarter last year. During the same quarter last year, the business earned $0.80 earnings per share. Pegasystems has set its FY 2026 guidance at 2.750-2.750 EPS. On average, equities analysts forecast that Pegasystems Inc. will post 1.89 EPS for the current fiscal year.

Pegasystems Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, January 16th. Shareholders of record on Friday, January 2nd were paid a $0.03 dividend. This represents a $0.12 dividend on an annualized basis and a yield of 0.3%. The ex-dividend date of this dividend was Friday, January 2nd. Pegasystems’s payout ratio is presently 5.63%.

Insider Activity at Pegasystems

In related news, CFO Kenneth Stillwell sold 14,405 shares of the stock in a transaction that occurred on Friday, December 5th. The stock was sold at an average price of $57.87, for a total transaction of $833,617.35. Following the completion of the sale, the chief financial officer directly owned 131,621 shares of the company’s stock, valued at approximately $7,616,907.27. This represents a 9.86% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Rifat Kerim Akgonul sold 4,000 shares of the firm’s stock in a transaction on Monday, December 8th. The stock was sold at an average price of $60.19, for a total transaction of $240,760.00. Following the sale, the insider owned 112,845 shares in the company, valued at approximately $6,792,140.55. The trade was a 3.42% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 108,405 shares of company stock worth $5,896,127. 49.70% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Hazlett Burt & Watson Inc. bought a new position in shares of Pegasystems in the 3rd quarter valued at about $28,000. International Assets Investment Management LLC acquired a new position in shares of Pegasystems during the 4th quarter worth about $28,000. Spire Wealth Management grew its holdings in Pegasystems by 274.2% during the second quarter. Spire Wealth Management now owns 565 shares of the technology company’s stock worth $31,000 after purchasing an additional 414 shares during the period. Hantz Financial Services Inc. boosted its stake in shares of Pegasystems by 321.6% during the 3rd quarter. Hantz Financial Services Inc. now owns 565 shares of the technology company’s stock worth $32,000 after acquiring an additional 431 shares during the period. Finally, Mather Group LLC. bought a new position in Pegasystems during the third quarter worth $33,000. 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.