Capital Research Global Investors Cuts Stake in Pegasystems Inc. $PEGA

Capital Research Global Investors reduced its stake in Pegasystems Inc. (NASDAQ:PEGA) by 28.7% during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 1,796,189 shares of the technology company’s stock after selling 721,398 shares during the period. Capital Research Global Investors owned approximately 1.06% of Pegasystems worth $107,268,000 as of its most recent SEC filing.

A number of other institutional investors have also recently modified their holdings of PEGA. NewEdge Advisors LLC grew its stake in shares of Pegasystems by 141,900.0% in the first quarter. NewEdge Advisors LLC now owns 4,260 shares of the technology company’s stock worth $296,000 after acquiring an additional 4,257 shares during the last quarter. Jones Financial Companies Lllp grew its stake in shares of Pegasystems by 450.4% in the first quarter. Jones Financial Companies Lllp now owns 1,844 shares of the technology company’s stock worth $128,000 after acquiring an additional 1,509 shares during the last quarter. Goldman Sachs Group Inc. grew its stake in shares of Pegasystems by 5.6% in the first quarter. Goldman Sachs Group Inc. now owns 248,168 shares of the technology company’s stock worth $17,253,000 after acquiring an additional 13,075 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in shares of Pegasystems by 18.0% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 155,783 shares of the technology company’s stock worth $10,830,000 after acquiring an additional 23,713 shares during the last quarter. Finally, Focus Partners Wealth grew its stake in shares of Pegasystems by 55.0% in the first quarter. Focus Partners Wealth now owns 5,476 shares of the technology company’s stock worth $381,000 after acquiring an additional 1,943 shares during the last quarter. 46.89% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In other Pegasystems news, insider Rifat Kerim Akgonul sold 7,594 shares of the firm’s stock in a transaction dated Monday, March 16th. The stock was sold at an average price of $43.39, for a total value of $329,503.66. Following the transaction, the insider directly owned 111,429 shares of the company’s stock, valued at approximately $4,834,904.31. This trade represents a 6.38% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CAO Efstathios A. Kouninis sold 1,000 shares of the firm’s stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $42.88, for a total value of $42,880.00. Following the completion of the transaction, the chief accounting officer directly owned 3,365 shares in the company, valued at $144,291.20. The trade was a 22.91% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 14,639 shares of company stock worth $577,764 over the last three months. Insiders own 48.40% of the company’s stock.

Pegasystems Stock Performance

Shares of NASDAQ:PEGA opened at $35.11 on Tuesday. The stock has a market capitalization of $5.87 billion, a price-to-earnings ratio of 18.88 and a beta of 0.86. The stock’s 50-day simple moving average is $37.59 and its two-hundred day simple moving average is $46.15. Pegasystems Inc. has a 52-week low of $32.00 and a 52-week high of $68.10.

Pegasystems (NASDAQ:PEGA) last announced its earnings results on Tuesday, April 21st. The technology company reported $0.46 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.68 by ($0.22). The firm had revenue of $429.97 million during the quarter, compared to analysts’ expectations of $473.24 million. Pegasystems had a return on equity of 30.05% and a net margin of 20.04%.The company’s revenue for the quarter was down 9.6% on a year-over-year basis. During the same period in the previous year, the business posted $0.76 earnings per share. As a group, equities analysts forecast that Pegasystems Inc. will post 1.95 earnings per share for the current fiscal year.

Pegasystems Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, April 15th. Shareholders of record on Wednesday, April 1st were given a $0.03 dividend. This represents a $0.12 annualized dividend and a yield of 0.3%. The ex-dividend date of this dividend was Wednesday, April 1st. Pegasystems’s dividend payout ratio (DPR) is presently 6.45%.

Analyst Ratings Changes

A number of equities research analysts have recently commented on PEGA shares. Rosenblatt Securities reissued a “buy” rating and issued a $62.00 target price on shares of Pegasystems in a research note on Monday, April 20th. Wedbush reaffirmed an “outperform” rating and set a $60.00 price objective on shares of Pegasystems in a research report on Thursday, April 23rd. Weiss Ratings cut Pegasystems from a “hold (c+)” rating to a “hold (c)” rating in a research report on Thursday. Zacks Research cut Pegasystems from a “strong-buy” rating to a “hold” rating in a research report on Friday, April 24th. Finally, Royal Bank Of Canada reaffirmed an “outperform” rating and set a $60.00 price objective (down from $65.00) on shares of Pegasystems in a research report on Wednesday, April 22nd. Eight analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, Pegasystems currently has a consensus rating of “Moderate Buy” and a consensus price target of $63.70.

Key Headlines Impacting Pegasystems

Here are the key news stories impacting Pegasystems this week:

• Positive Sentiment: Pegasystems said it has completed its multi-year shift to a subscription model, with cloud annual contract value growth improving, a sign of more predictable recurring revenue and better visibility into future sales. Pegasystems Completes Subscription Shift, Boosts Cloud ACV Growth
• Positive Sentiment: The company launched Pega Customer Engagement Studio, an agentic AI workspace for marketers, expanding its customer decisioning platform and adding a new product angle that could support revenue growth. Pega Launches Customer Engagement Studio to Transform Marketing Operations with Agentic AI
• Positive Sentiment: Pega introduced new AI capabilities for mission-critical workflows, including support for open standards and more efficient agent execution, which could make its platform more attractive to enterprise buyers concerned about governance and cost. Pega Eliminates AI Token Tax With More Efficient Way to Build and Run Agentic Workflows
• Positive Sentiment: The AWS modernization announcement could help Pega win more enterprise transformation deals by making it easier to move legacy mainframe systems into cloud-native environments. Pega Launches AI-Driven Modernization Capability on AWS
• Neutral Sentiment: Management also highlighted partner awards, industry awards, and a new solution designer initiative, reinforcing Pega’s enterprise ecosystem and AI positioning, but these are less immediately material to near-term earnings. Pega Redefines AI-Driven Transformation with Solution Designer Initiative
• Negative Sentiment: One CRM industry piece noted that Pega is still working to prove the returns from its AI investments, reminding investors that the company may need to show stronger real-world monetization before the rally is fully justified. Pega’s Working to Address AI Returns Realization

Pegasystems 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.