Pegasystems (NASDAQ:PEGA – Get Free Report) released its quarterly earnings data on Tuesday. The technology company reported $0.35 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.43 by ($0.08), FiscalAI reports. Pegasystems had a return on equity of 30.63% and a net margin of 18.66%.The business had revenue of $420.72 million during the quarter, compared to analysts’ expectations of $427.38 million. During the same quarter in the previous year, the company posted $0.28 EPS. The company’s revenue was up 9.4% compared to the same quarter last year.
Pegasystems Stock Down 16.0%
NASDAQ:PEGA opened at $25.99 on Thursday. The company has a market capitalization of $4.34 billion, a PE ratio of 14.68 and a beta of 0.87. Pegasystems has a 52-week low of $25.10 and a 52-week high of $68.10. The stock has a fifty day simple moving average of $32.42 and a 200-day simple moving average of $40.00.
Pegasystems Dividend Announcement
The company also recently declared a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders of record on Wednesday, July 1st were given a $0.03 dividend. The ex-dividend date was Wednesday, July 1st. This represents a $0.12 dividend on an annualized basis and a dividend yield of 0.5%. Pegasystems’s dividend payout ratio (DPR) is currently 6.45%.
Insider Activity
Institutional Investors Weigh In On Pegasystems
A number of large investors have recently bought and sold shares of the stock. EFG International AG purchased a new position in Pegasystems during the fourth quarter worth $32,000. Brown Brothers Harriman & Co. lifted its position in shares of Pegasystems by 386.3% in the fourth quarter. Brown Brothers Harriman & Co. now owns 710 shares of the technology company’s stock valued at $42,000 after acquiring an additional 564 shares in the last quarter. Transamerica Financial Advisors LLC boosted its stake in shares of Pegasystems by 89.3% during the fourth quarter. Transamerica Financial Advisors LLC now owns 1,473 shares of the technology company’s stock valued at $88,000 after acquiring an additional 695 shares during the last quarter. Aster Capital Management DIFC Ltd acquired a new stake in shares of Pegasystems during the fourth quarter valued at $100,000. Finally, DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main increased its position in Pegasystems by 100.0% during the 2nd quarter. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main now owns 1,848 shares of the technology company’s stock worth $100,000 after purchasing an additional 924 shares in the last quarter. Institutional investors and hedge funds own 46.89% of the company’s stock.
Pegasystems News Roundup
Here are the key news stories impacting Pegasystems this week:
- Positive Sentiment: Rosenblatt Securities still rates Pegasystems a Buy, even after cutting its price target to $47 from $58, suggesting analysts continue to see meaningful upside from current levels. Article Title
- Positive Sentiment: Management highlighted stronger cloud momentum and outlined a 2028 free cash flow target above $700 million, which could support a longer-term valuation case if execution improves. Article Title
- Neutral Sentiment: Several analysts maintained bullish or constructive views after the selloff, but multiple firms also trimmed forecasts and price targets following the quarter. Article Title
- Neutral Sentiment: The company posted 9.4% revenue growth year over year and continued to grow cloud sales, showing the core business is still expanding despite the earnings miss. Article Title
- Negative Sentiment: Second-quarter EPS and revenue both missed Wall Street estimates, which triggered a sharp selloff in PEGA shares. Article Title
- Negative Sentiment: Management said AI-driven shifts in enterprise spending caused some customers to delay purchases, raising concern that annual contract value growth could stay under pressure. Article Title
- Negative Sentiment: PEGA also saw analyst downgrades, including Citizens JMP cutting its rating to Market Perform, reinforcing the cautious near-term outlook. Article Title
Wall Street Analyst Weigh In
PEGA has been the topic of a number of recent analyst reports. Rosenblatt Securities lowered their price target on shares of Pegasystems from $58.00 to $47.00 and set a “buy” rating on the stock in a research note on Thursday. Weiss Ratings cut shares of Pegasystems from a “hold (c+)” rating to a “hold (c)” rating in a research note on Thursday, June 4th. Wedbush reissued an “outperform” rating and set a $60.00 price objective on shares of Pegasystems in a report on Thursday, April 23rd. DA Davidson restated a “buy” rating and set a $55.00 target price on shares of Pegasystems in a research report on Wednesday, June 10th. Finally, Citigroup cut shares of Pegasystems from a “market outperform” rating to a “market perform” rating in a report on Wednesday. Six equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $54.90.
Read Our Latest Analysis on Pegasystems
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.
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