Pegasystems (NASDAQ:PEGA) Shares Gap Down After Earnings Miss

Pegasystems Inc. (NASDAQ:PEGA) shares gapped down before the market opened on Thursday following a dissappointing 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 changing hands.

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

Pegasystems Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, January 16th. Investors of record on Thursday, January 2nd were issued a $0.03 dividend. 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 dividend payout ratio (DPR) is presently 8.76%.

Analyst Ratings Changes

PEGA has been the subject of several research reports. Royal Bank of Canada increased their price objective on shares of Pegasystems from $90.00 to $115.00 and gave the company an “outperform” rating in a research report on Friday, January 3rd. Rosenblatt Securities raised their target price on shares of Pegasystems from $95.00 to $115.00 and gave the stock a “buy” rating in a report on Tuesday. StockNews.com raised shares of Pegasystems from a “hold” rating to a “buy” rating in a research report on Thursday, November 21st. Wedbush boosted their target price on Pegasystems from $90.00 to $100.00 and gave the company an “outperform” rating in a research report on Friday, October 25th. Finally, KeyCorp reissued an “overweight” rating and set a $118.00 price target on shares of Pegasystems in a research note on Tuesday, January 14th. Three analysts have rated the stock with a hold rating, nine have given a buy rating and one has given a strong buy rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $97.64.

Insider Buying and Selling

In related news, CAO Efstathios A. Kouninis sold 299 shares of the stock in a transaction that occurred on 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 document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Leon Trefler sold 752 shares of Pegasystems stock in a transaction that occurred on Tuesday, December 31st. The stock was sold at an average price of $93.83, for a total transaction of $70,560.16. Following the completion of the sale, the insider now owns 37,973 shares of the company’s stock, valued at $3,563,006.59. This trade represents a 1.94 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 14,003 shares of company stock worth $1,346,086 in the last ninety days. 50.10% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the stock. Thrivent Financial for Lutherans purchased a new stake in Pegasystems in the fourth quarter valued at approximately $66,542,000. Franklin Resources Inc. lifted its holdings in shares of Pegasystems by 398.4% in the 4th quarter. Franklin Resources Inc. now owns 702,838 shares of the technology company’s stock valued at $65,505,000 after buying an additional 561,807 shares during the period. Norges Bank purchased a new stake in shares of Pegasystems in the fourth quarter worth about $44,343,000. Raymond James Financial Inc. purchased a new stake in shares of Pegasystems in the fourth quarter worth about $27,623,000. Finally, Fisher Asset Management LLC raised its position in Pegasystems by 31.7% during the fourth quarter. Fisher Asset Management LLC now owns 637,999 shares of the technology company’s stock valued at $59,462,000 after acquiring an additional 153,703 shares in the last quarter. Institutional investors and hedge funds own 46.89% of the company’s stock.

Pegasystems Stock Down 17.6 %

The company has a market capitalization of $7.50 billion, a PE ratio of 63.84 and a beta of 1.11. The firm has a 50-day moving average of $99.51 and a two-hundred day moving average of $83.73.

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.