Pegasystems (NASDAQ:PEGA) Announces Earnings Results, Misses Expectations By $0.22 EPS

Pegasystems (NASDAQ:PEGA) released its earnings results on Tuesday. The technology company reported $0.46 EPS for the quarter, missing analysts’ consensus estimates of $0.68 by ($0.22), FiscalAI reports. The company had revenue of $429.97 million during the quarter, compared to analyst estimates of $473.24 million. Pegasystems had a return on equity of 38.86% and a net margin of 22.54%.

Pegasystems Stock Performance

Shares of PEGA traded down $4.51 during trading hours on Tuesday, hitting $39.29. The stock had a trading volume of 5,484,371 shares, compared to its average volume of 2,256,683. The firm has a 50-day moving average price of $43.10 and a 200 day moving average price of $51.61. Pegasystems has a fifty-two week low of $33.56 and a fifty-two week high of $68.10. The firm has a market capitalization of $6.64 billion, a price-to-earnings ratio of 18.40 and a beta of 1.09.

Pegasystems Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, April 15th. Investors 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 payout ratio is currently 5.63%.

Insider Activity

In related news, CFO Kenneth Stillwell sold 44,000 shares of the business’s stock in a transaction on Tuesday, March 10th. The shares were sold at an average price of $44.81, for a total value of $1,971,640.00. Following the completion of the transaction, the chief financial officer directly owned 109,123 shares in the company, valued at $4,889,801.63. The trade was a 28.74% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CAO Efstathios A. Kouninis sold 1,000 shares of the business’s stock in a transaction 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 completion of the sale, the chief accounting officer directly owned 3,365 shares of the company’s stock, valued at approximately $144,291.20. The trade was a 22.91% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 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 Investors Weigh In On Pegasystems

Several institutional investors and hedge funds have recently added to or reduced their stakes in PEGA. NewEdge Advisors LLC increased its holdings in Pegasystems by 141,900.0% in the 1st quarter. NewEdge Advisors LLC now owns 4,260 shares of the technology company’s stock worth $296,000 after acquiring an additional 4,257 shares in the last quarter. Jones Financial Companies Lllp grew its holdings in shares of Pegasystems by 450.4% during the first quarter. Jones Financial Companies Lllp now owns 1,844 shares of the technology company’s stock worth $128,000 after buying an additional 1,509 shares in the last quarter. Goldman Sachs Group Inc. grew its holdings in shares of Pegasystems by 5.6% during the first quarter. Goldman Sachs Group Inc. now owns 248,168 shares of the technology company’s stock worth $17,253,000 after buying an additional 13,075 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in shares of Pegasystems by 18.0% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 155,783 shares of the technology company’s stock worth $10,830,000 after buying an additional 23,713 shares in the last quarter. Finally, Focus Partners Wealth grew its holdings in shares of Pegasystems by 55.0% in the first quarter. Focus Partners Wealth now owns 5,476 shares of the technology company’s stock valued at $381,000 after purchasing an additional 1,943 shares during the period. Hedge funds and other institutional investors own 46.89% of the company’s stock.

Analyst Upgrades and Downgrades

A number of analysts recently commented on the stock. Rosenblatt Securities reiterated a “buy” rating and issued a $62.00 target price on shares of Pegasystems in a research note on Monday. Wedbush lowered their target price on shares of Pegasystems from $75.00 to $60.00 and set an “outperform” rating for the company in a research note on Thursday, February 12th. Citizens Jmp lowered their target price on shares of Pegasystems from $78.00 to $58.00 and set a “market outperform” rating for the company in a research note on Thursday, February 12th. Zacks Research upgraded shares of Pegasystems from a “hold” rating to a “strong-buy” rating in a research note on Friday, February 13th. Finally, DA Davidson set a $55.00 price objective on shares of Pegasystems and gave the company a “buy” rating in a research note on Friday. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and two have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $64.10.

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.