Pegasystems (NASDAQ:PEGA) Shares Gap Down – What’s Next?

Pegasystems Inc. (NASDAQ:PEGA)’s share price gapped down before the market opened on Tuesday . The stock had previously closed at $43.80, but opened at $42.23. Pegasystems shares last traded at $42.1070, with a volume of 502,951 shares changing hands.

Wall Street Analysts Forecast Growth

PEGA has been the topic of several research analyst reports. Citizens Jmp lowered their target price on shares of Pegasystems from $78.00 to $58.00 and set a “market outperform” rating on the stock in a research note on Thursday, February 12th. Zacks Research upgraded Pegasystems from a “hold” rating to a “strong-buy” rating in a research report on Friday, February 13th. Rosenblatt Securities reiterated a “buy” rating and set a $62.00 price target on shares of Pegasystems in a research report on Monday. Citigroup lowered their price target on Pegasystems from $75.00 to $70.00 and set a “buy” rating on the stock in a research report on Tuesday, April 14th. Finally, Royal Bank Of Canada set a $65.00 price target on Pegasystems and gave the company an “outperform” rating in a research report on Thursday, February 12th. One investment analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and two have given a Hold rating to the stock. According to MarketBeat.com, Pegasystems currently has an average rating of “Moderate Buy” and an average target price of $64.10.

Pegasystems Stock Down 6.6%

The business has a 50-day simple moving average of $43.10 and a two-hundred day simple moving average of $51.61. The company has a market cap of $6.91 billion, a price-to-earnings ratio of 19.16 and a beta of 1.09.

Pegasystems (NASDAQ:PEGA) last issued its quarterly earnings results on Tuesday, February 10th. The technology company reported $0.76 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.74 by $0.02. Pegasystems had a return on equity of 38.86% and a net margin of 22.54%.The firm had revenue of $504.32 million for the quarter, compared to analyst estimates of $494.60 million. During the same period in the previous year, the company posted $0.80 earnings per share. The company’s quarterly revenue was up 2.8% compared to the same quarter last year. Pegasystems has set its FY 2026 guidance at 2.750-2.750 EPS. As a group, equities analysts anticipate that Pegasystems Inc. will post 2.08 earnings per share for the current year.

Pegasystems Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, April 15th. Stockholders of record on Wednesday, April 1st were paid a $0.03 dividend. This represents a $0.12 annualized dividend and a dividend yield of 0.3%. The ex-dividend date was Wednesday, April 1st. Pegasystems’s dividend payout ratio is currently 5.63%.

Insider Buying and Selling

In other news, Chairman Alan Trefler sold 45,000 shares of the business’s stock in a transaction that occurred on Wednesday, January 21st. The stock was sold at an average price of $49.02, for a total value of $2,205,900.00. Following the transaction, the chairman directly owned 44,394,454 shares of the company’s stock, valued at $2,176,216,135.08. The trade was a 0.10% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CAO Efstathios A. Kouninis sold 1,000 shares of the business’s stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $42.88, for a total value of $42,880.00. Following the completion of the transaction, the chief accounting officer directly owned 3,365 shares in the company, valued at $144,291.20. The trade was a 22.91% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 97,594 shares of company stock valued at $4,549,924. 50.10% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. Massachusetts Financial Services Co. MA increased its position in shares of Pegasystems by 23.1% in the 3rd quarter. Massachusetts Financial Services Co. MA now owns 4,987,291 shares of the technology company’s stock valued at $286,769,000 after buying an additional 937,216 shares in the last quarter. Thrivent Financial for Lutherans increased its holdings in Pegasystems by 1.3% during the 3rd quarter. Thrivent Financial for Lutherans now owns 1,927,576 shares of the technology company’s stock worth $110,778,000 after purchasing an additional 25,598 shares in the last quarter. Vest Financial LLC acquired a new position in shares of Pegasystems during the 3rd quarter worth about $1,515,000. Intrinsic Edge Capital Management LLC acquired a new position in shares of Pegasystems during the 3rd quarter worth about $10,940,000. Finally, Allspring Global Investments Holdings LLC lifted its stake in Pegasystems by 40.6% in the 3rd quarter. Allspring Global Investments Holdings LLC now owns 218,917 shares of the technology company’s stock valued at $12,489,000 after purchasing an additional 63,267 shares during the last quarter. Institutional investors and hedge funds 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.