Pegasystems (NASDAQ:PEGA) Shares Gap Down – Time to Sell?

Pegasystems Inc. (NASDAQ:PEGA) gapped down before the market opened on Wednesday . The stock had previously closed at $43.03, but opened at $39.08. Pegasystems shares last traded at $37.1650, with a volume of 1,019,567 shares changing hands.

Pegasystems News Roundup

Here are the key news stories impacting Pegasystems this week:

• Positive Sentiment: Pega raised FY‑2026 EPS guidance to $2.75 (well above Street consensus) and set revenue guidance around $2.0B, and also expanded its buyback plan — moves that typically support the stock. Pegasystems Raises 2026 Outlook and Boosts Buyback Plan
• Neutral Sentiment: Pega reported Q4 revenue of roughly $504M and non‑GAAP EPS modestly beat consensus ($0.76 vs ~$0.74), showing delivery but not a blowout quarter. PEGA Beats Q4 Estimates (Zacks)
• Neutral Sentiment: Management framed 2025 as a year of execution and released an investor slide deck and conference call — useful for context but not an immediate market mover. Company Press Release
• Negative Sentiment: Some headline profitability metrics disappointed: reports noted YoY declines in net income and a sizable drop in operating profit on a GAAP basis, which spooked investors despite the beat on adjusted EPS. Investing.com: Net Income Declines YoY
• Negative Sentiment: Balance‑sheet and cash items raised questions: cash & equivalents fell materially year‑over‑year and operating profit was cited as down ~27% in third‑party summaries — factors that can pressure near‑term sentiment. QuiverQuant Financial Summary
• Negative Sentiment: Significant insider selling (multiple senior executives including the CEO) was highlighted in filings/third‑party data, which can amplify downward pressure on the stock. Insider Trading Details (Quiver)
• Negative Sentiment: Market reaction: several outlets report shares fell after the report — indicating the beat and guidance lift were outweighed by concerns about GAAP profitability, cash and insider sales. MSN: Sales Top Estimates But Stock Drops

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on PEGA. DA Davidson upgraded Pegasystems from a “neutral” rating to a “buy” rating and upped their price objective for the company from $60.00 to $85.00 in a report on Wednesday, October 22nd. Wall Street Zen upgraded shares of Pegasystems from a “buy” rating to a “strong-buy” rating in a research report on Saturday, January 31st. Royal Bank Of Canada restated an “outperform” rating and set a $80.00 price objective (up previously from $70.00) on shares of Pegasystems in a research report on Wednesday, October 22nd. JPMorgan Chase & Co. boosted their target price on shares of Pegasystems from $65.00 to $74.00 and gave the stock an “overweight” rating in a report on Friday, December 5th. Finally, Barclays increased their target price on shares of Pegasystems from $58.00 to $67.00 and gave the company an “equal weight” rating in a research note on Thursday, October 23rd. Nine analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $70.55.

Pegasystems Price Performance

The stock’s fifty day moving average price is $54.62 and its 200-day moving average price is $56.04. The firm has a market cap of $6.20 billion, a price-to-earnings ratio of 24.53 and a beta of 1.07.

Pegasystems (NASDAQ:PEGA) last posted its quarterly earnings data on Tuesday, February 10th. The technology company reported $0.76 EPS for the quarter, topping analysts’ consensus estimates of $0.74 by $0.02. Pegasystems had a net margin of 16.05% and a return on equity of 43.49%. The firm had revenue of $504.32 million during the quarter, compared to analyst estimates of $494.60 million. During the same quarter last year, the business posted $0.80 EPS. The company’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, equities research analysts predict that Pegasystems Inc. will post 1.89 EPS for the current fiscal year.

Pegasystems Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, January 16th. Shareholders of record on Friday, January 2nd were 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 was Friday, January 2nd. Pegasystems’s payout ratio is 8.05%.

Insider Transactions at Pegasystems

In related news, CFO Kenneth Stillwell sold 14,405 shares of the firm’s stock in a transaction that occurred on Friday, December 5th. The shares were sold at an average price of $57.87, for a total transaction of $833,617.35. Following the completion of the sale, the chief financial officer directly owned 131,621 shares in the company, valued at approximately $7,616,907.27. This trade represents a 9.86% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider Rifat Kerim Akgonul sold 4,000 shares of the business’s stock in a transaction that occurred on Monday, December 8th. The shares were sold at an average price of $60.19, for a total transaction of $240,760.00. Following the transaction, the insider directly owned 112,845 shares in the company, valued at $6,792,140.55. The trade was a 3.42% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 108,405 shares of company stock valued at $5,896,127 over the last three months. 50.10% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of PEGA. Massachusetts Financial Services Co. MA increased its stake in shares of Pegasystems by 23.1% during the 3rd quarter. Massachusetts Financial Services Co. MA now owns 4,987,291 shares of the technology company’s stock worth $286,769,000 after purchasing an additional 937,216 shares during the last quarter. Thrivent Financial for Lutherans boosted its holdings in Pegasystems by 1.3% in the third quarter. Thrivent Financial for Lutherans now owns 1,927,576 shares of the technology company’s stock worth $110,778,000 after purchasing an additional 25,598 shares in the last quarter. Vest Financial LLC bought a new stake in Pegasystems in the third quarter worth $1,515,000. Nordea Investment Management AB increased its position in Pegasystems by 100.9% during the second quarter. Nordea Investment Management AB now owns 196,065 shares of the technology company’s stock worth $10,492,000 after buying an additional 98,468 shares during the last quarter. Finally, Allianz Asset Management GmbH raised its holdings in Pegasystems by 60.3% during the second quarter. Allianz Asset Management GmbH now owns 240,225 shares of the technology company’s stock valued at $13,003,000 after buying an additional 90,404 shares in the last quarter. Hedge funds and other 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.