Pegasystems (NASDAQ:PEGA) Stock Price Down 6% – What’s Next?

Shares of Pegasystems Inc. (NASDAQ:PEGA) traded down 6% during mid-day trading on Tuesday . The company traded as low as $41.14 and last traded at $41.70. 400,618 shares changed hands during 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 Analyst Weigh In

A number of analysts recently weighed in on the stock. Weiss Ratings reissued a “hold (c+)” rating on shares of Pegasystems in a report on Monday, December 29th. Wall Street Zen downgraded Pegasystems from a “strong-buy” rating to a “hold” rating in a report on Saturday, February 14th. Wedbush decreased their price objective on Pegasystems from $75.00 to $60.00 and set an “outperform” rating on the stock in a research report on Thursday, February 12th. JPMorgan Chase & Co. boosted their target price on Pegasystems from $65.00 to $74.00 and gave the stock an “overweight” rating in a research report on Friday, December 5th. Finally, Rosenblatt Securities reaffirmed a “buy” rating and set a $62.00 price target on shares of Pegasystems in a research note on Thursday, February 12th. One analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $67.60.

Pegasystems Stock Performance

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

Pegasystems (NASDAQ:PEGA) last announced its quarterly earnings results on Tuesday, February 10th. The technology company reported $0.76 earnings per share for the quarter, beating analysts’ consensus estimates of $0.74 by $0.02. The business 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%. Pegasystems’s revenue for the quarter was up 2.8% on a year-over-year basis. During the same period last year, the company posted $0.80 EPS. Pegasystems has set its FY 2026 guidance at 2.750-2.750 EPS. As a group, sell-side analysts anticipate 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. Stockholders of record on Wednesday, April 1st will be given a dividend of $0.03 per share. This represents a $0.12 annualized dividend and a dividend 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 Transactions at Pegasystems

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 completion of the transaction, the chief financial officer directly owned 109,123 shares of the company’s stock, valued at approximately $4,889,801.63. This represents a 28.74% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Chairman Alan Trefler sold 45,000 shares of the stock in a transaction that occurred on Wednesday, January 21st. The shares were sold at an average price of $49.02, for a total value of $2,205,900.00. Following the completion of the sale, the chairman directly owned 44,394,454 shares of the company’s stock, valued at approximately $2,176,216,135.08. The trade was a 0.10% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 97,594 shares of company stock worth $4,549,924. Insiders own 50.10% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. International Assets Investment Management LLC acquired a new position in Pegasystems in the 4th quarter valued at $28,000. Hazlett Burt & Watson Inc. acquired a new stake in shares of Pegasystems during the third quarter worth $28,000. EFG International AG acquired a new stake in shares of Pegasystems during the fourth quarter worth $32,000. Hantz Financial Services Inc. boosted its position in shares of Pegasystems by 321.6% in the third quarter. Hantz Financial Services Inc. now owns 565 shares of the technology company’s stock valued at $32,000 after acquiring an additional 431 shares during the period. Finally, Mather Group LLC. bought a new stake in shares of Pegasystems in the third quarter valued at about $33,000. 46.89% of the stock is owned by institutional investors and hedge funds.

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.