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

Pegasystems Inc. (NASDAQ:PEGA) gapped down prior to trading 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 trading hands.

Analysts Set New Price Targets

PEGA has been the topic of a number of recent research reports. Wedbush dropped their target price on Pegasystems from $75.00 to $60.00 and set an “outperform” rating on the stock in a report on Thursday, February 12th. Zacks Research raised Pegasystems from a “hold” rating to a “strong-buy” rating in a report on Friday, February 13th. Rosenblatt Securities reaffirmed a “buy” rating and set a $62.00 price objective on shares of Pegasystems in a report on Monday. Wall Street Zen lowered Pegasystems from a “strong-buy” rating to a “hold” rating in a report on Saturday, February 14th. Finally, KeyCorp set a $60.00 price objective on Pegasystems in a report on Thursday, February 5th. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $64.10.

Pegasystems Price Performance

The stock has a 50-day simple moving average of $43.10 and a 200 day simple moving average of $51.61. The company has a market capitalization of $6.91 billion, a PE ratio of 19.16 and a beta of 1.09.

Pegasystems (NASDAQ:PEGA) last announced its quarterly earnings results on Tuesday, February 10th. The technology company reported $0.76 EPS for the quarter, topping 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 company had revenue of $504.32 million during the quarter, compared to analyst estimates of $494.60 million. During the same period in the prior year, the firm posted $0.80 earnings per share. The firm’s revenue was up 2.8% on a year-over-year basis. Pegasystems has set its FY 2026 guidance at 2.750-2.750 EPS. As a group, research analysts predict that Pegasystems Inc. will post 2.08 EPS for the current fiscal year.

Pegasystems Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, April 15th. Shareholders of record on Wednesday, April 1st were paid a dividend of $0.03 per share. This represents a $0.12 dividend on an annualized basis and a yield of 0.3%. The ex-dividend date was Wednesday, April 1st. Pegasystems’s dividend payout ratio (DPR) is 5.63%.

Insiders Place Their Bets

In other Pegasystems news, CAO Efstathios A. Kouninis sold 1,000 shares of the stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $42.88, for a total transaction of $42,880.00. Following the transaction, the chief accounting officer owned 3,365 shares of the company’s stock, valued at $144,291.20. This trade represents a 22.91% decrease in their position. The transaction was disclosed in a filing with the SEC, 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 transaction, the chairman directly owned 44,394,454 shares in the company, valued at approximately $2,176,216,135.08. This represents a 0.10% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 97,594 shares of company stock worth $4,549,924 in the last quarter. Company insiders own 50.10% of the company’s stock.

Institutional Trading of Pegasystems

Several hedge funds have recently added to or reduced their stakes in the business. International Assets Investment Management LLC acquired a new position in Pegasystems during the 4th quarter worth $28,000. Hazlett Burt & Watson Inc. acquired a new stake in Pegasystems in the third quarter worth about $28,000. EFG International AG acquired a new position in Pegasystems during the 4th quarter valued at about $32,000. Hantz Financial Services Inc. increased its stake in Pegasystems by 321.6% during the 3rd quarter. Hantz Financial Services Inc. now owns 565 shares of the technology company’s stock valued at $32,000 after buying an additional 431 shares during the period. Finally, Mather Group LLC. acquired a new position in Pegasystems during the 3rd quarter valued at about $33,000. Institutional investors 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.