Pegasystems (NASDAQ:PEGA) Shares Gap Down on Disappointing Earnings

Pegasystems Inc. (NASDAQ:PEGA)’s share price gapped down before the market opened on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $106.09, but opened at $99.80. Pegasystems shares last traded at $87.05, with a volume of 642,843 shares trading hands.

The technology company reported $1.27 earnings per share for the quarter, missing the consensus estimate of $1.47 by ($0.20). Pegasystems had a return on equity of 37.83% and a net margin of 8.29%.

Pegasystems Announces Dividend

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

Analyst Ratings Changes

Several brokerages have recently weighed in on PEGA. Royal Bank of Canada boosted their target price on Pegasystems from $90.00 to $115.00 and gave the stock an “outperform” rating in a report on Friday, January 3rd. Wedbush raised their target price on Pegasystems from $90.00 to $100.00 and gave the stock an “outperform” rating in a research note on Friday, October 25th. Barclays boosted their price target on shares of Pegasystems from $82.00 to $103.00 and gave the company an “equal weight” rating in a research report on Friday, January 31st. Citigroup lifted 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, KeyCorp reiterated an “overweight” rating and issued a $118.00 price objective on shares of Pegasystems in a report on Tuesday, January 14th. Three investment analysts have rated the stock with a hold rating, nine have issued a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $97.64.

Insider Buying and Selling at Pegasystems

In related news, CFO Kenneth Stillwell sold 2,000 shares of Pegasystems stock in a transaction on Monday, December 2nd. The stock was sold at an average price of $94.60, for a total value of $189,200.00. Following the completion of the transaction, the chief financial officer now directly owns 15,400 shares in the company, valued at approximately $1,456,840. This trade represents a 11.49 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Leon Trefler sold 752 shares of the company’s stock in a transaction dated Tuesday, December 31st. The stock was sold at an average price of $93.83, for a total value of $70,560.16. Following the sale, the insider now owns 37,973 shares in the company, valued at approximately $3,563,006.59. This trade represents a 1.94 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 14,003 shares of company stock valued at $1,346,086 in the last 90 days. Company insiders own 50.10% of the company’s stock.

Hedge Funds Weigh In On Pegasystems

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Principal Securities Inc. boosted its position in shares of Pegasystems by 150.5% during the 4th quarter. Principal Securities Inc. now owns 278 shares of the technology company’s stock worth $26,000 after purchasing an additional 167 shares in the last quarter. True Wealth Design LLC acquired a new position in Pegasystems during the third quarter worth about $27,000. EverSource Wealth Advisors LLC increased its holdings in Pegasystems by 85.6% in the fourth quarter. EverSource Wealth Advisors LLC now owns 323 shares of the technology company’s stock valued at $30,000 after buying an additional 149 shares in the last quarter. Venturi Wealth Management LLC lifted its position in shares of Pegasystems by 49.1% during the 3rd quarter. Venturi Wealth Management LLC now owns 656 shares of the technology company’s stock valued at $48,000 after acquiring an additional 216 shares during the period. Finally, Financial Management Professionals Inc. purchased a new stake in shares of Pegasystems during the 3rd quarter worth approximately $57,000. 46.89% of the stock is currently owned by hedge funds and other institutional investors.

Pegasystems Trading Down 17.6 %

The stock has a market capitalization of $7.50 billion, a price-to-earnings ratio of 63.84 and a beta of 1.11. The stock’s 50 day moving average is $99.51 and its 200 day moving average is $83.73.

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.