Pegasystems Inc. $PEGA Stock: Vest Financial LLC Boosts Position

Vest Financial LLC raised its position in shares of Pegasystems Inc. (NASDAQ:PEGA) by 16.3% in the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 186,635 shares of the technology company’s stock after buying an additional 26,184 shares during the quarter. Vest Financial LLC’s holdings in Pegasystems were worth $6,211,000 at the end of the most recent quarter.

Other hedge funds have also recently modified their holdings of the company. Nisa Investment Advisors LLC raised its stake in Pegasystems by 26.4% during the third quarter. Nisa Investment Advisors LLC now owns 1,547 shares of the technology company’s stock valued at $52,000 after buying an additional 323 shares during the last quarter. Alpine Bank Wealth Management purchased a new stake in shares of Pegasystems in the third quarter worth $27,000. Vontobel Holding Ltd. increased its holdings in shares of Pegasystems by 87.0% during the third quarter. Vontobel Holding Ltd. now owns 13,623 shares of the technology company’s stock valued at $453,000 after acquiring an additional 6,339 shares in the last quarter. TD Waterhouse Canada Inc. increased its holdings in shares of Pegasystems by 37.2% during the third quarter. TD Waterhouse Canada Inc. now owns 4,637 shares of the technology company’s stock valued at $160,000 after acquiring an additional 1,257 shares in the last quarter. Finally, Copeland Capital Management LLC raised its position in shares of Pegasystems by 26.4% in the 3rd quarter. Copeland Capital Management LLC now owns 1,777,785 shares of the technology company’s stock worth $59,165,000 after purchasing an additional 370,824 shares during the last quarter. Institutional investors own 46.89% of the company’s stock.

Insider Transactions at Pegasystems

In related news, CAO Efstathios Kouninis sold 982 shares of Pegasystems stock in a transaction dated Wednesday, September 16th. The stock was sold at an average price of $37.35, for a total value of $36,677.70. Following the completion of the sale, the chief accounting officer directly owned 1,009 shares in the company, valued at $37,686.15. The trade was a 49.32% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, CFO Kenneth Stillwell sold 39,627 shares of the business’s stock in a transaction dated Friday, September 11th. The shares were sold at an average price of $35.77, for a total transaction of $1,417,457.79. Following the completion of the sale, the chief financial officer owned 95,225 shares of the company’s stock, valued at approximately $3,406,198.25. This represents a 29.39% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 53,672 shares of company stock valued at $1,921,657. Company insiders own 48.40% of the company’s stock.

Key Stories Impacting Pegasystems

Here are the key news stories impacting Pegasystems this week:

• Positive Sentiment: Analyst support remains strong: RBC Capital reiterated a Buy-equivalent view, while Barclays also initiated or reiterated a Buy rating. RBC previously raised its price target to $40 from $35, suggesting confidence in Pegasystems’ long-term opportunity. Pegasystems Gets a Buy from RBC Capital Pegasystems Receives a Buy from Barclays
• Positive Sentiment: Cloud momentum and product positioning are encouraging: Pega Cloud annual contract value increased 20%, buybacks continued, and an independent research firm named Pega a leader in application generation and low-code platforms. These developments support the company’s competitive moat and recurring-revenue potential. Pega Named a Leader in AppGen and Low-Code Platforms
• Neutral Sentiment: Citigroup remains bullish but reduced its target: Citi cut its price target to $50 from $52 while maintaining a Buy rating. The lower target reflects near-term caution, but it still implies substantial potential upside based on the referenced share price.
• Negative Sentiment: The main pressure is the third-quarter miss: Pegasystems reported adjusted earnings of $0.35 per share versus expectations of $0.45, while revenue of $393.4 million fell short of the $421.1 million consensus. Revenue growth was only 3.1% year over year, reinforcing concerns about slowing demand and execution. Pegasystems Stock Falls on Disappointing Earnings
• Negative Sentiment: Margins and AI monetization remain concerns: Coverage of the earnings call highlighted a sharper margin squeeze, go-to-market changes and execution challenges. Investors are questioning whether Pega’s AI investments are producing enough new customer wins and cash flow, making the near-term outlook less certain. Pegasystems Q3 Miss and AI-to-Cash-Flow Challenges

Pegasystems Trading Down 0.6%

NASDAQ PEGA opened at $36.42 on Friday. The stock’s 50 day moving average is $35.17 and its 200 day moving average is $34.32. Pegasystems Inc. has a 12 month low of $25.10 and a 12 month high of $68.10. The stock has a market cap of $5.96 billion, a PE ratio of 28.86 and a beta of 0.89.

Pegasystems (NASDAQ:PEGA) last released its quarterly earnings data on Tuesday, October 20th. The technology company reported $0.35 EPS for the quarter, missing the consensus estimate of $0.45 by ($0.10). The company had revenue of $393.36 million for the quarter, compared to the consensus estimate of $421.06 million. Pegasystems had a net margin of 16.86% and a return on equity of 35.22%. The firm’s revenue for the quarter was up 3.1% on a year-over-year basis. During the same period last year, the company earned $0.30 EPS. On average, analysts forecast that Pegasystems Inc. will post 1.69 EPS for the current fiscal year.

Pegasystems Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, October 15th. Shareholders of record on Thursday, October 1st were issued a dividend of $0.03 per share. This represents a $0.12 annualized dividend and a yield of 0.3%. The ex-dividend date was Thursday, October 1st. Pegasystems’s dividend payout ratio (DPR) is presently 7.45%.

Wall Street Analyst Weigh In

PEGA has been the topic of several analyst reports. KeyCorp cut Pegasystems from an “overweight” rating to a “sector weight” rating in a research report on Wednesday, July 22nd. UBS Group downgraded Pegasystems to a “sell” rating in a report on Wednesday. JPMorgan Chase & Co. reaffirmed a “neutral” rating and set a $47.00 price objective (down from $54.00) on shares of Pegasystems in a research report on Thursday, September 17th. Rosenblatt Securities set a $43.00 target price on shares of Pegasystems and gave the company a “buy” rating in a research note on Wednesday. Finally, Citigroup lowered their target price on shares of Pegasystems from $52.00 to $50.00 and set a “buy” rating on the stock in a research note on Thursday. Six investment analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Pegasystems presently has an average rating of “Hold” and a consensus price target of $45.73.

About Pegasystems

Pegasystems Inc is a software company that develops enterprise applications for customer engagement, workflow automation and business process management. Its technology helps organizations manage customer interactions, automate repetitive work, coordinate complex processes and make data-driven decisions across departments and channels.

The company’s portfolio includes Pega Platform, a low-code application development and workflow platform, along with solutions for customer service, sales automation, marketing, decisioning and artificial intelligence.