Pegasystems (NASDAQ:PEGA) Releases Earnings Results, Misses Estimates By $0.22 EPS

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

Pegasystems Trading Down 10.3%

PEGA stock traded down $4.51 during mid-day trading on Tuesday, hitting $39.29. The stock had a trading volume of 5,403,679 shares, compared to its average volume of 2,242,711. Pegasystems has a 1-year low of $33.56 and a 1-year high of $68.10. The company has a fifty day moving average of $43.10 and a 200 day moving average of $51.61. The stock has a market capitalization of $6.64 billion, a price-to-earnings ratio of 18.40 and a beta of 1.09.

Pegasystems Dividend Announcement

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

Insider Transactions at Pegasystems

In related news, insider Rifat Kerim Akgonul sold 7,594 shares of the firm’s stock in a transaction that occurred on Monday, March 16th. The shares were sold at an average price of $43.39, for a total transaction of $329,503.66. Following the transaction, the insider owned 111,429 shares of the company’s stock, valued at approximately $4,834,904.31. This trade represents a 6.38% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Chairman Alan Trefler sold 45,000 shares of Pegasystems stock in a transaction that occurred on Wednesday, January 21st. The shares were sold at an average price of $49.02, for a total transaction of $2,205,900.00. Following the completion of the sale, the chairman owned 44,394,454 shares of the company’s stock, valued at $2,176,216,135.08. This trade represents a 0.10% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 97,594 shares of company stock worth $4,549,924. Corporate insiders own 50.10% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. NewEdge Advisors LLC lifted its position in Pegasystems by 1.4% during the 3rd quarter. NewEdge Advisors LLC now owns 13,652 shares of the technology company’s stock worth $785,000 after acquiring an additional 189 shares during the last quarter. Amundi increased its stake in shares of Pegasystems by 0.6% in the fourth quarter. Amundi now owns 39,881 shares of the technology company’s stock worth $2,382,000 after purchasing an additional 249 shares during the period. Vinva Investment Management Ltd lifted its position in shares of Pegasystems by 8.4% during the 4th quarter. Vinva Investment Management Ltd now owns 4,048 shares of the technology company’s stock worth $242,000 after purchasing an additional 314 shares during the last quarter. Advisory Services Network LLC lifted its position in shares of Pegasystems by 1.6% during the 4th quarter. Advisory Services Network LLC now owns 25,178 shares of the technology company’s stock worth $1,504,000 after purchasing an additional 407 shares during the last quarter. Finally, EFG International AG bought a new stake in Pegasystems during the 4th quarter valued at approximately $32,000. 46.89% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several research analysts have recently weighed in on PEGA shares. DA Davidson set a $55.00 target price on shares of Pegasystems and gave the company a “buy” rating in a research note on Friday. Wedbush decreased their price objective on shares of Pegasystems from $75.00 to $60.00 and set an “outperform” rating for the company in a report on Thursday, February 12th. KeyCorp set a $60.00 price target on Pegasystems in a report on Thursday, February 5th. Citigroup reduced their target price on shares of Pegasystems from $75.00 to $70.00 and set a “buy” rating for the company in a research note on Tuesday, April 14th. Finally, Zacks Research raised Pegasystems from a “hold” rating to a “strong-buy” rating in a research note on Friday, February 13th. One equities 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 stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $64.10.

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.