Wedbush Research Analysts Decrease Earnings Estimates for Pegasystems Inc. (NASDAQ:PEGA)

Pegasystems Inc. (NASDAQ:PEGA) – Investment analysts at Wedbush dropped their Q3 2024 earnings per share (EPS) estimates for shares of Pegasystems in a research report issued to clients and investors on Thursday, September 26th. Wedbush analyst D. Ives now expects that the technology company will earn $0.09 per share for the quarter, down from their prior estimate of $0.16. Wedbush currently has a “Outperform” rating and a $90.00 price objective on the stock. The consensus estimate for Pegasystems’ current full-year earnings is $1.54 per share. Wedbush also issued estimates for Pegasystems’ Q4 2024 earnings at $1.17 EPS, FY2024 earnings at $1.64 EPS, Q2 2025 earnings at $0.24 EPS, Q3 2025 earnings at $0.19 EPS, Q4 2025 earnings at $1.45 EPS and FY2025 earnings at $2.03 EPS.

Pegasystems (NASDAQ:PEGA) last posted its quarterly earnings results on Wednesday, July 24th. The technology company reported $0.52 earnings per share for the quarter, topping the consensus estimate of $0.22 by $0.30. The company had revenue of $351.20 million for the quarter, compared to the consensus estimate of $323.55 million. Pegasystems had a return on equity of 49.62% and a net margin of 8.72%. The firm’s quarterly revenue was up 17.7% compared to the same quarter last year. During the same quarter in the prior year, the business posted ($0.41) EPS.

Several other research firms have also recently weighed in on PEGA. William Blair raised Pegasystems from a “market perform” rating to an “outperform” rating in a report on Tuesday, July 30th. Citigroup increased their price target on Pegasystems from $87.00 to $92.00 and gave the company a “buy” rating in a report on Wednesday, September 25th. Rosenblatt Securities raised their target price on Pegasystems from $75.00 to $90.00 and gave the stock a “buy” rating in a report on Wednesday, July 31st. The Goldman Sachs Group lifted their target price on Pegasystems from $70.00 to $78.00 and gave the company a “neutral” rating in a research report on Friday, July 26th. Finally, JMP Securities upgraded Pegasystems from a “market perform” rating to an “outperform” rating and set a $85.00 target price on the stock in a research report on Wednesday, July 31st. Three research analysts have rated the stock with a hold rating, eight have issued a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $83.60.

Pegasystems Trading Down 0.9 %

PEGA stock opened at $72.21 on Monday. The stock’s 50 day simple moving average is $67.72 and its 200 day simple moving average is $62.94. The stock has a market capitalization of $6.14 billion, a PE ratio of 88.06 and a beta of 1.07. Pegasystems has a 12-month low of $37.66 and a 12-month high of $74.40.

Institutional Investors Weigh In On Pegasystems

Several large investors have recently added to or reduced their stakes in PEGA. Pacer Advisors Inc. purchased a new position in shares of Pegasystems during the second quarter valued at approximately $67,968,000. Norges Bank purchased a new stake in shares of Pegasystems in the fourth quarter valued at approximately $22,784,000. Dimensional Fund Advisors LP boosted its holdings in shares of Pegasystems by 266.8% in the second quarter. Dimensional Fund Advisors LP now owns 390,580 shares of the technology company’s stock valued at $23,641,000 after purchasing an additional 284,095 shares during the period. AQR Capital Management LLC boosted its holdings in shares of Pegasystems by 104.5% in the second quarter. AQR Capital Management LLC now owns 554,777 shares of the technology company’s stock valued at $33,381,000 after purchasing an additional 283,508 shares during the period. Finally, Vanguard Group Inc. boosted its holdings in shares of Pegasystems by 4.9% in the first quarter. Vanguard Group Inc. now owns 5,369,237 shares of the technology company’s stock valued at $347,067,000 after purchasing an additional 250,273 shares during the period. 46.89% of the stock is owned by institutional investors.

Insider Transactions at Pegasystems

In other news, insider Rifat Kerim Akgonul sold 1,000 shares of Pegasystems stock in a transaction dated Thursday, July 25th. The stock was sold at an average price of $70.00, for a total value of $70,000.00. Following the sale, the insider now directly owns 50,505 shares of the company’s stock, valued at $3,535,350. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. In other Pegasystems news, insider Rifat Kerim Akgonul sold 1,000 shares of the business’s stock in a transaction that occurred on Thursday, July 25th. The stock was sold at an average price of $70.00, for a total transaction of $70,000.00. Following the sale, the insider now directly owns 50,505 shares of the company’s stock, valued at $3,535,350. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CAO Efstathios A. Kouninis sold 750 shares of the business’s stock in a transaction that occurred on Wednesday, July 31st. The stock was sold at an average price of $72.09, for a total value of $54,067.50. Following the sale, the chief accounting officer now directly owns 752 shares in the company, valued at $54,211.68. The disclosure for this sale can be found here. Over the last three months, insiders have sold 44,203 shares of company stock valued at $3,078,933. 50.10% of the stock is currently owned by insiders.

Pegasystems Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, October 15th. Stockholders of record on Tuesday, October 1st will be issued a $0.03 dividend. The ex-dividend date of this dividend is Tuesday, October 1st. This represents a $0.12 annualized dividend and a dividend yield of 0.17%. Pegasystems’s dividend payout ratio (DPR) is 14.63%.

Pegasystems Company Profile

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.