KeyCorp Has Pessimistic Outlook of Pegasystems Q4 Earnings

Pegasystems Inc. (NASDAQ:PEGA) – Analysts at KeyCorp cut their Q4 2027 EPS estimates for Pegasystems in a research report issued on Wednesday, July 22nd. KeyCorp analyst D. Au now forecasts that the technology company will earn $0.99 per share for the quarter, down from their previous forecast of $1.16. KeyCorp has a “Sector Weight” rating on the stock. The consensus estimate for Pegasystems’ current full-year earnings is $1.79 per share.

Several other equities analysts have also recently weighed in on the company. Loop Capital cut Pegasystems from a “buy” rating to a “hold” rating and reduced their price target for the company from $55.00 to $25.00 in a research report on Thursday. William Blair downgraded shares of Pegasystems from an “outperform” rating to a “market perform” rating in a report on Wednesday. Zacks Research lowered shares of Pegasystems from a “strong-buy” rating to a “hold” rating in a research report on Friday, April 24th. Barclays reaffirmed an “overweight” rating and set a $39.00 price objective (down from $48.00) on shares of Pegasystems in a research note on Thursday. Finally, DA Davidson set a $32.00 target price on shares of Pegasystems in a report on Friday. Six investment analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. According to MarketBeat, Pegasystems has an average rating of “Hold” and an average target price of $50.10.

Pegasystems Price Performance

NASDAQ PEGA opened at $26.82 on Monday. The firm has a market cap of $4.41 billion, a P/E ratio of 15.15 and a beta of 0.87. The company’s 50 day moving average is $32.13 and its 200-day moving average is $39.56. Pegasystems has a 12-month low of $25.10 and a 12-month high of $68.10.

Pegasystems (NASDAQ:PEGA) last issued its earnings results on Tuesday, July 21st. The technology company reported $0.35 earnings per share for the quarter, missing analysts’ consensus estimates of $0.43 by ($0.08). The business had revenue of $420.72 million for the quarter, compared to the consensus estimate of $427.38 million. Pegasystems had a return on equity of 32.21% and a net margin of 18.66%.Pegasystems’s revenue for the quarter was up 9.4% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.28 EPS.

Pegasystems Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders of record on Wednesday, July 1st were issued a dividend of $0.03 per share. This represents a $0.12 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date of this dividend was Wednesday, July 1st. Pegasystems’s payout ratio is currently 6.78%.

Insiders Place Their Bets

In other Pegasystems news, insider Rifat Kerim Akgonul sold 4,545 shares of the firm’s stock in a transaction dated Tuesday, May 19th. The stock was sold at an average price of $33.35, for a total transaction of $151,575.75. Following the sale, the insider owned 107,070 shares in the company, valued at $3,570,784.50. This trade represents a 4.07% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CAO Efstathios A. Kouninis sold 750 shares of Pegasystems stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $36.99, for a total value of $27,742.50. Following the sale, the chief accounting officer directly owned 2,144 shares of the company’s stock, valued at approximately $79,306.56. This trade represents a 25.92% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 6,795 shares of company stock valued at $229,613 over the last ninety days. 48.40% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. AQR Capital Management LLC increased its holdings in shares of Pegasystems by 236.2% in the second quarter. AQR Capital Management LLC now owns 4,037,552 shares of the technology company’s stock worth $217,584,000 after buying an additional 2,836,733 shares during the period. State Street Corp boosted its holdings in Pegasystems by 255.3% during the 2nd quarter. State Street Corp now owns 2,907,677 shares of the technology company’s stock valued at $157,393,000 after acquiring an additional 2,089,375 shares during the period. Copeland Capital Management LLC purchased a new stake in Pegasystems during the 1st quarter valued at about $47,817,000. Capital Impact Advisors LLC bought a new position in Pegasystems during the 4th quarter worth approximately $45,705,000. Finally, First Trust Advisors LP grew its position in Pegasystems by 44.4% during the 1st quarter. First Trust Advisors LP now owns 2,048,599 shares of the technology company’s stock worth $87,188,000 after acquiring an additional 630,023 shares during the last quarter. 46.89% of the stock is currently owned by institutional investors.

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.