Pegasystems (NASDAQ:PEGA) Downgraded to “Hold” Rating by Wall Street Zen

Pegasystems (NASDAQ:PEGA) was downgraded by investment analysts at Wall Street Zen from a “strong-buy” rating to a “hold” rating in a note issued to investors on Saturday.

Other equities analysts have also issued reports about the company. Citizens Jmp cut their target price on Pegasystems from $78.00 to $58.00 and set a “market outperform” rating on the stock in a research report on Thursday. Royal Bank Of Canada set a $65.00 price target on shares of Pegasystems and gave the stock an “outperform” rating in a research note on Thursday. KeyCorp set a $60.00 price objective on shares of Pegasystems in a research note on Thursday, February 5th. Wedbush decreased their price objective on shares of Pegasystems from $75.00 to $60.00 and set an “outperform” rating for the company in a report on Thursday. Finally, Citigroup restated a “buy” rating and issued a $73.00 target price (down previously from $81.00) on shares of Pegasystems in a research note on Thursday. Ten equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $66.95.

Pegasystems Price Performance

Shares of PEGA stock opened at $43.85 on Friday. The company’s fifty day moving average price is $53.64 and its two-hundred day moving average price is $55.70. The firm has a market capitalization of $7.41 billion, a P/E ratio of 20.54 and a beta of 1.07. Pegasystems has a 12 month low of $29.84 and a 12 month high of $68.10.

Pegasystems (NASDAQ:PEGA) last announced its earnings results on Tuesday, February 10th. The technology company reported $0.76 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.74 by $0.02. The business had revenue of $504.32 million for the quarter, compared to analyst estimates of $494.60 million. Pegasystems had a return on equity of 38.86% and a net margin of 22.54%.The company’s revenue for the quarter was up 2.8% compared to the same quarter last year. During the same period in the previous year, the company earned $0.80 earnings per share. Pegasystems has set its FY 2026 guidance at 2.750-2.750 EPS. On average, sell-side analysts anticipate that Pegasystems will post 1.89 EPS for the current year.

Insider Transactions at Pegasystems

In other Pegasystems news, CFO Kenneth Stillwell sold 14,405 shares of the business’s stock in a transaction dated Friday, December 5th. The shares were sold at an average price of $57.87, for a total transaction of $833,617.35. Following the completion of the transaction, the chief financial officer directly owned 131,621 shares of the company’s stock, valued at $7,616,907.27. The trade was a 9.86% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Rifat Kerim Akgonul sold 4,000 shares of the company’s stock in a transaction dated Monday, December 8th. The stock was sold at an average price of $60.19, for a total transaction of $240,760.00. Following the completion of the transaction, the insider owned 112,845 shares of the company’s stock, valued at approximately $6,792,140.55. This trade represents a 3.42% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 108,405 shares of company stock worth $5,896,127. Insiders own 49.70% of the company’s stock.

Institutional Investors Weigh In On Pegasystems

Hedge funds have recently made changes to their positions in the business. NewEdge Advisors LLC grew its holdings in Pegasystems by 1.4% in the 3rd quarter. NewEdge Advisors LLC now owns 13,652 shares of the technology company’s stock worth $785,000 after buying an additional 189 shares in the last quarter. UMB Bank n.a. raised its stake in Pegasystems by 27.3% during the 3rd quarter. UMB Bank n.a. now owns 929 shares of the technology company’s stock valued at $53,000 after acquiring an additional 199 shares in the last quarter. Paralel Advisors LLC boosted its position in Pegasystems by 0.3% during the 3rd quarter. Paralel Advisors LLC now owns 76,960 shares of the technology company’s stock worth $4,425,000 after acquiring an additional 224 shares during the period. Global Retirement Partners LLC grew its stake in shares of Pegasystems by 20.5% in the third quarter. Global Retirement Partners LLC now owns 1,331 shares of the technology company’s stock worth $77,000 after purchasing an additional 226 shares in the last quarter. Finally, EverSource Wealth Advisors LLC grew its stake in shares of Pegasystems by 5.0% in the third quarter. EverSource Wealth Advisors LLC now owns 4,798 shares of the technology company’s stock worth $276,000 after purchasing an additional 228 shares in the last quarter. Institutional investors own 46.89% of the company’s stock.

Key Stories Impacting Pegasystems

Here are the key news stories impacting Pegasystems this week:

• Positive Sentiment: Barclays upgraded PEGA, citing accelerating Pega Cloud adoption and strong AI positioning after the recent selloff — the note frames current weakness as a buying opportunity. Barclays upgrade
• Positive Sentiment: Coverage highlighting Pegasystems’ strong 2025 results, legal relief and an enlarged buyback has shifted the investment narrative toward capital returns plus improving fundamentals. Strong 2025 results & buyback
• Positive Sentiment: Management reiterated growth ambitions (targeting $2B revenue) and emphasized “predictable AI” and cloud migration as the path to mid-teens ACV/revenue growth — a roadmap investors view as supportive of durable recurring revenue. $2B revenue target
• Positive Sentiment: Pegasystems is targeting ~15% ACV and revenue growth in 2026 as Pega Cloud adoption accelerates — a concrete growth guide that supports multiple expansion if execution continues. 2026 growth targets
• Positive Sentiment: Rosenblatt reaffirmed a buy rating with a $62 target, signaling at least some analyst conviction behind the recovery narrative. Rosenblatt reaffirmation
• Positive Sentiment: Intraday market commentary noted PEGA “making a mark” on Nasdaq as digital solutions momentum attracts trader interest. Nasdaq momentum
• Neutral Sentiment: Analysts and commentary are reassessing valuation after recent share‑price weakness — useful context for longer‑term investors but not an immediate catalyst. Valuation assessment
• Neutral Sentiment: Comparative coverage contrasts PEGA with peers (e.g., Trend Micro) — background reading for investors sizing competitive risk. Peer contrast
• Negative Sentiment: Wedbush cut its price target from $75 to $60 (still an outperform), reducing upside projection and signaling more conservative near‑term expectations. Wedbush PT cut
• Negative Sentiment: Citizens Jmp lowered its target from $78 to $58, trimming analyst upside and reflecting continued analyst divergence on fair value. Citizens Jmp PT cut
• Negative Sentiment: Pegasystems agreed to pay $7M to resolve investors’ trade‑secret claims — a modest one‑time hit but a headline negative that briefly pressures sentiment. Legal settlement

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.