Pegasystems (NASDAQ:PEGA) Trading Down 6% – Time to Sell?

Shares of Pegasystems Inc. (NASDAQ:PEGA) traded down 6% during trading on Tuesday . The stock traded as low as $41.14 and last traded at $41.70. 400,618 shares changed hands during mid-day trading, a decline of 83% from the average session volume of 2,319,153 shares. The stock had previously closed at $44.36.

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on PEGA. Citizens Jmp lowered their price target on shares of Pegasystems from $78.00 to $58.00 and set a “market outperform” rating on the stock in a report on Thursday, February 12th. Wedbush reduced their price objective on shares of Pegasystems from $75.00 to $60.00 and set an “outperform” rating for the company in a report on Thursday, February 12th. Citigroup lifted their target price on shares of Pegasystems from $73.00 to $75.00 and gave the company a “buy” rating in a research report on Wednesday, March 11th. Royal Bank Of Canada set a $65.00 price target on shares of Pegasystems and gave the stock an “outperform” rating in a research report on Thursday, February 12th. Finally, Weiss Ratings restated a “hold (c+)” rating on shares of Pegasystems in a research note on Monday, December 29th. One investment analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $67.60.

Pegasystems Price Performance

The stock has a market capitalization of $7.02 billion, a price-to-earnings ratio of 19.41 and a beta of 1.06. The firm has a 50 day simple moving average of $45.34 and a 200-day simple moving average of $53.91.

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

Pegasystems Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 15th. Shareholders of record on Wednesday, April 1st will be paid a dividend of $0.03 per share. This represents a $0.12 annualized dividend and a yield of 0.3%. The ex-dividend date of this dividend is Wednesday, April 1st. Pegasystems’s dividend payout ratio is currently 5.63%.

Insider Activity

In related news, CFO Kenneth Stillwell sold 44,000 shares of the stock in a transaction that occurred on Tuesday, March 10th. The stock was sold at an average price of $44.81, for a total transaction of $1,971,640.00. Following the sale, the chief financial officer directly owned 109,123 shares in the company, valued at $4,889,801.63. This represents a 28.74% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Chairman Alan Trefler sold 45,000 shares of the 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 sale, the chairman owned 44,394,454 shares in the company, valued at approximately $2,176,216,135.08. This trade represents a 0.10% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 97,594 shares of company stock worth $4,549,924. Corporate insiders own 50.10% of the company’s stock.

Hedge Funds Weigh In On Pegasystems

Institutional investors and hedge funds have recently bought and sold shares of the business. Rockefeller Capital Management L.P. raised its holdings in shares of Pegasystems by 44,255.5% in the fourth quarter. Rockefeller Capital Management L.P. now owns 202,261 shares of the technology company’s stock valued at $12,079,000 after buying an additional 201,805 shares during the last quarter. Corient Private Wealth LLC grew its holdings in Pegasystems by 41.1% during the 4th quarter. Corient Private Wealth LLC now owns 32,581 shares of the technology company’s stock worth $1,946,000 after acquiring an additional 9,497 shares during the last quarter. Kera Capital Partners Inc. grew its holdings in Pegasystems by 28.6% during the 4th quarter. Kera Capital Partners Inc. now owns 5,540 shares of the technology company’s stock worth $331,000 after acquiring an additional 1,232 shares during the last quarter. Invesco Ltd. increased its position in Pegasystems by 14.8% in the 4th quarter. Invesco Ltd. now owns 3,127,771 shares of the technology company’s stock valued at $186,790,000 after acquiring an additional 402,763 shares in the last quarter. Finally, Vident Advisory LLC increased its position in Pegasystems by 21.3% in the 4th quarter. Vident Advisory LLC now owns 82,206 shares of the technology company’s stock valued at $4,909,000 after acquiring an additional 14,462 shares in the last quarter. Institutional investors and hedge funds own 46.89% of the company’s stock.

About Pegasystems

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.