Pegasystems Inc. (NASDAQ:PEGA) Receives Consensus Rating of “Hold” from Brokerages

Pegasystems Inc. (NASDAQ:PEGA) has been given an average rating of “Hold” by the thirteen ratings firms that are currently covering the company, Marketbeat Ratings reports. Seven equities research analysts have rated the stock with a hold recommendation and six have given a buy recommendation to the company. The average twelve-month price objective among brokers that have issued ratings on the stock in the last year is $52.40.

A number of research firms have recently issued reports on PEGA. Barclays restated an “overweight” rating and issued a $39.00 target price (down from $48.00) on shares of Pegasystems in a report on Thursday. Rosenblatt Securities lowered their price target on Pegasystems from $58.00 to $47.00 and set a “buy” rating on the stock in a report on Thursday. Citizens Jmp lowered Pegasystems from an “outperform” rating to a “market perform” rating in a research report on Wednesday. KeyCorp downgraded Pegasystems from an “overweight” rating to a “sector weight” rating in a research note on Wednesday. Finally, Loop Capital lowered Pegasystems from a “buy” rating to a “hold” rating and decreased their price objective for the stock from $55.00 to $25.00 in a research report on Thursday.

Pegasystems Price Performance

PEGA stock opened at $26.01 on Friday. Pegasystems has a 52-week low of $25.10 and a 52-week high of $68.10. The company’s 50 day simple moving average is $32.27 and its 200-day simple moving average is $39.79. The firm has a market capitalization of $4.28 billion, a P/E ratio of 14.69 and a beta of 0.87.

Pegasystems (NASDAQ:PEGA) last posted its quarterly earnings data on Tuesday, July 21st. The technology company reported $0.35 EPS for the quarter, missing analysts’ consensus estimates of $0.43 by ($0.08). Pegasystems had a return on equity of 32.21% and a net margin of 18.66%.The firm had revenue of $420.72 million during the quarter, compared to analyst estimates of $427.38 million. During the same period in the prior year, the business posted $0.28 EPS. The company’s revenue for the quarter was up 9.4% on a year-over-year basis. Sell-side analysts predict that Pegasystems will post 1.93 EPS for the current fiscal year.

Pegasystems Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders of record on Wednesday, July 1st were issued 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 is currently 6.45%.

Key Pegasystems News

Here are the key news stories impacting Pegasystems this week:

• Positive Sentiment: Pegasystems highlighted cloud growth and recurring revenue strength, and management outlined a long-term free cash flow target of more than $700 million by 2028. Pegasystems outlines $700M+ 2028 free cash flow target while highlighting no per token costs for ai agents
• Positive Sentiment: Several analysts kept bullish ratings, saying the selloff may create an attractive entry point despite near-term AI disruption and reset expectations. Analyst Maintains Buy on Pegasystems, Viewing Near-Term Weakness as Temporary and Market Selloff as an Attractive Entry Point
• Positive Sentiment: Rosenblatt cut its price target but still reiterated a Buy rating, implying meaningful upside from current levels. Pegasystems PT Lowered to $47 at Rosenblatt
• Neutral Sentiment: Management said the new Pega Infinity 26 launch and AI agent messaging could support longer-term positioning, but investors are still waiting to see whether it translates into stronger demand. Pegasystems (PEGA) Stock Could Be Undervalued As Pega Infinity 26 Launches
• Negative Sentiment: The Q2 miss triggered a broad downgrade wave, with analysts trimming forecasts and price targets after the weaker-than-expected report. Pegasystems Analysts Cut Their Forecasts After Downbeat Q2 Earnings
• Negative Sentiment: The stock also came under pressure because customers appear to be delaying software purchases while reassessing spending in the AI era, which could weigh on near-term growth. Pegasystems Just Did an IBM, Only Its AI Warning May Be Even Worse

Insider Buying and Selling

In related news, insider Rifat Kerim Akgonul sold 4,545 shares of the firm’s stock in a transaction that occurred on Tuesday, May 19th. The shares were sold at an average price of $33.35, for a total transaction of $151,575.75. Following the completion of the sale, the insider directly owned 107,070 shares in the company, valued at approximately $3,570,784.50. This trade represents a 4.07% 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, CAO Efstathios A. Kouninis sold 750 shares of the business’s stock in a transaction on Monday, June 1st. The shares were sold at an average price of $36.99, for a total transaction of $27,742.50. Following the transaction, the chief accounting officer owned 2,144 shares in the company, valued at approximately $79,306.56. This represents a 25.92% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 6,795 shares of company stock valued at $229,613 over the last three months. 48.40% of the stock is owned by insiders.

Institutional Investors Weigh In On Pegasystems

Institutional investors have recently made changes to their positions in the company. Norges Bank acquired a new position in Pegasystems in the fourth quarter worth approximately $31,905,000. Fisher Asset Management LLC lifted its stake in Pegasystems by 3.0% in the fourth quarter. Fisher Asset Management LLC now owns 1,170,377 shares of the technology company’s stock valued at $69,895,000 after acquiring an additional 33,643 shares during the last quarter. Allspring Global Investments Holdings LLC lifted its stake in Pegasystems by 117.3% in the first quarter. Allspring Global Investments Holdings LLC now owns 814,062 shares of the technology company’s stock valued at $34,427,000 after acquiring an additional 439,417 shares during the last quarter. Los Angeles Capital Management LLC grew its position in Pegasystems by 259.7% in the fourth quarter. Los Angeles Capital Management LLC now owns 411,262 shares of the technology company’s stock worth $26,144,000 after acquiring an additional 296,916 shares in the last quarter. Finally, Harel Insurance Investments & Financial Services Ltd. grew its position in Pegasystems by 58.6% in the first quarter. Harel Insurance Investments & Financial Services Ltd. now owns 137,302 shares of the technology company’s stock worth $5,844,000 after acquiring an additional 50,716 shares in the last quarter. 46.89% of the stock is currently owned by institutional investors and hedge funds.

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.