Pegasystems (NASDAQ:PEGA) Sets New 12-Month High Following Strong Earnings

Pegasystems Inc. (NASDAQ:PEGA) hit a new 52-week high during trading on Thursday following a stronger than expected earnings report. The stock traded as high as $78.54 and last traded at $76.93, with a volume of 29718 shares trading hands. The stock had previously closed at $69.73.

The technology company reported $0.39 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.35 by $0.04. The business had revenue of $325.10 million during the quarter, compared to analysts’ expectations of $326.16 million. Pegasystems had a net margin of 8.72% and a return on equity of 49.62%. The business’s quarterly revenue was down 2.8% on a year-over-year basis. During the same quarter last year, the company posted $0.14 earnings per share.

Pegasystems Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, October 15th. Investors of record on Tuesday, October 1st were issued a dividend of $0.03 per share. The ex-dividend date of this dividend was Tuesday, October 1st. This represents a $0.12 annualized dividend and a dividend yield of 0.15%. Pegasystems’s dividend payout ratio (DPR) is presently 8.28%.

Analyst Upgrades and Downgrades

PEGA has been the topic of several analyst reports. JMP Securities raised Pegasystems from a “market perform” rating to an “outperform” rating and set a $85.00 price target on the stock in a research report on Wednesday, July 31st. William Blair raised Pegasystems from a “market perform” rating to an “outperform” rating in a report on Tuesday, July 30th. Barclays boosted their price target on Pegasystems from $74.00 to $82.00 and gave the company an “equal weight” rating in a report on Friday. DA Davidson raised their price objective on shares of Pegasystems from $60.00 to $70.00 and gave the stock a “neutral” rating in a research note on Friday, July 26th. Finally, JPMorgan Chase & Co. lifted their target price on shares of Pegasystems from $78.00 to $83.00 and gave the company an “overweight” rating in a report on Wednesday, July 31st. Three equities research analysts have rated the stock with a hold rating, eight have given a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat, Pegasystems has a consensus rating of “Moderate Buy” and an average price target of $85.90.

Insiders Place Their Bets

In other news, insider Leon Trefler sold 752 shares of the business’s stock in a transaction dated Wednesday, July 31st. The shares were sold at an average price of $72.09, for a total transaction of $54,211.68. Following the completion of the sale, the insider now owns 38,412 shares of the company’s stock, valued at $2,769,121.08. The trade was a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. In related news, insider Rifat Kerim Akgonul sold 1,000 shares of the business’s stock in a transaction that occurred on Tuesday, September 3rd. The stock was sold at an average price of $70.41, for a total transaction of $70,410.00. Following the completion of the sale, the insider now directly owns 46,505 shares in the company, valued at approximately $3,274,417.05. The trade was a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Leon Trefler sold 752 shares of the firm’s stock in a transaction dated Wednesday, July 31st. The stock was sold at an average price of $72.09, for a total transaction of $54,211.68. Following the completion of the transaction, the insider now directly owns 38,412 shares in the company, valued at approximately $2,769,121.08. This represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 44,955 shares of company stock worth $3,136,247. Company insiders own 50.10% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Versant Capital Management Inc increased its position in Pegasystems by 15,120.0% during the second quarter. Versant Capital Management Inc now owns 761 shares of the technology company’s stock worth $46,000 after purchasing an additional 756 shares during the last quarter. Financial Management Professionals Inc. acquired a new stake in shares of Pegasystems during the 3rd quarter worth approximately $57,000. Headlands Technologies LLC raised its position in shares of Pegasystems by 64.0% during the 1st quarter. Headlands Technologies LLC now owns 869 shares of the technology company’s stock valued at $56,000 after buying an additional 339 shares during the period. Covestor Ltd lifted its holdings in Pegasystems by 633.9% in the first quarter. Covestor Ltd now owns 1,233 shares of the technology company’s stock valued at $80,000 after acquiring an additional 1,065 shares during the last quarter. Finally, Point72 Hong Kong Ltd purchased a new position in Pegasystems in the second quarter worth approximately $104,000. 46.89% of the stock is owned by hedge funds and other institutional investors.

Pegasystems Price Performance

The company has a market cap of $6.84 billion, a price-to-earnings ratio of 55.19 and a beta of 1.07. The firm has a 50 day simple moving average of $70.20 and a 200-day simple moving average of $64.12.

About Pegasystems

Pegasystems Inc develops, markets, licenses, hosts, and supports enterprise software in the United States, rest of the Americas, the United Kingdom, rest of Europe, the Middle East, Africa, and the Asia-Pacific. The company provides Pega Infinity, a software portfolio comprising of Pega Customer Decision Hub, a real-time AI-powered decision engine to enhance customer acquisition and experiences across inbound, outbound, and paid media channels; Pega Customer Service to anticipate customer needs, connect customers to people and systems, and automate customer interactions to evolve the customer service experience, as well as to allow enterprises to deliver interactions across channels and enhance employee productivity; and Pega Platform, an intelligent automation software for increasing efficiency of clients’ processes and workflows.