Pegasystems (NASDAQ:PEGA) Posts Earnings Results, Misses Expectations By $0.20 EPS

Pegasystems (NASDAQ:PEGA) released its quarterly earnings results on Wednesday. The technology company reported $1.27 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.47 by ($0.20), Zacks reports. Pegasystems had a net margin of 8.29% and a return on equity of 37.83%. Pegasystems updated its FY 2025 guidance to 3.100-3.100 EPS.

Pegasystems Stock Performance

Pegasystems stock traded down $18.25 during midday trading on Thursday, hitting $87.84. 569,542 shares of the company’s stock were exchanged, compared to its average volume of 874,905. The stock has a market cap of $7.53 billion, a price-to-earnings ratio of 64.12 and a beta of 1.11. The firm’s 50 day simple moving average is $99.51 and its 200 day simple moving average is $83.73. Pegasystems has a 12-month low of $48.51 and a 12-month high of $113.67.

Pegasystems Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, January 16th. Shareholders of record on Thursday, January 2nd were given a dividend of $0.03 per share. This represents a $0.12 annualized dividend and a yield of 0.14%. The ex-dividend date was Thursday, January 2nd. Pegasystems’s payout ratio is currently 8.76%.

Insider Activity

In related news, CAO Efstathios A. Kouninis sold 299 shares of the firm’s stock in a transaction dated Monday, December 16th. The shares were sold at an average price of $96.90, for a total value of $28,973.10. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Leon Trefler sold 752 shares of the firm’s stock in a transaction dated Monday, December 2nd. The shares were sold at an average price of $94.60, for a total transaction of $71,139.20. Following the completion of the sale, the insider now owns 36,884 shares of the company’s stock, valued at $3,489,226.40. This trade represents a 2.00 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 14,003 shares of company stock valued at $1,346,086 over the last quarter. Corporate insiders own 50.10% of the company’s stock.

Analysts Set New Price Targets

Several brokerages recently weighed in on PEGA. Barclays upped their target price on shares of Pegasystems from $82.00 to $103.00 and gave the stock an “equal weight” rating in a research note on Friday, January 31st. Royal Bank of Canada upped their target price on shares of Pegasystems from $90.00 to $115.00 and gave the stock an “outperform” rating in a research note on Friday, January 3rd. StockNews.com raised shares of Pegasystems from a “hold” rating to a “buy” rating in a research note on Thursday, November 21st. Citigroup upped their target price on shares of Pegasystems from $99.00 to $123.00 and gave the stock a “buy” rating in a research note on Wednesday, December 18th. Finally, Wedbush upped their target price on shares of Pegasystems from $90.00 to $100.00 and gave the stock an “outperform” rating in a research note on Friday, October 25th. Three analysts have rated the stock with a hold rating, nine have given a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat.com, Pegasystems has a consensus rating of “Moderate Buy” and an average target price of $97.64.

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.