Pegasystems (NASDAQ:PEGA) Shares Up 9.6% – What’s Next?

Pegasystems Inc. (NASDAQ:PEGA) traded up 9.6% on Thursday . The company traded as high as $42.34 and last traded at $41.5890. 1,041,151 shares traded hands during trading, a decline of 48% from the average session volume of 2,008,557 shares. The stock had previously closed at $37.93.

Pegasystems News Roundup

Here are the key news stories impacting Pegasystems this week:

• Positive Sentiment: Pega beat Q4 revenue and EPS expectations, showing stronger demand (AI-driven product uptake) and upside vs. Street estimates. Zacks: Pegasystems Q4 Earnings Surpass Estimates
• Positive Sentiment: Management raised FY‑2026 guidance (EPS 2.75 vs. consensus ~2.22) and reiterated a larger revenue target, and also boosted the buyback program — a clear catalyst for improved forward earnings expectations and shareholder returns. TipRanks: Pegasystems Raises 2026 Outlook and Boosts Buyback Plan
• Positive Sentiment: Company is targeting accelerated ACV and cloud adoption with a stated ~$2B revenue ambition and emphasis on “predictable AI,” signaling multi‑year growth potential if cloud migration and AI adoption continue. MSN: Pegasystems targets 15% ACV and revenue growth in 2026
• Positive Sentiment: Rosenblatt reaffirmed its Buy rating and $62 price target, adding another supportive analyst voice. Benzinga: Rosenblatt reaffirms Buy
• Neutral Sentiment: Several valuation/analysis writeups are assessing PEGA after recent share weakness — useful context for longer‑term investors but not an immediate catalyst. Yahoo Finance: Assessing Pegasystems Valuation
• Neutral Sentiment: Comparative pieces (e.g., PEGA vs. Trend Micro) provide market context for investors considering alternatives in security/enterprise software. American Banking News: PEGA vs Trend Micro
• Negative Sentiment: Two firms cut price targets (Wedbush $75→$60; Citizens Jmp $78→$58) while keeping outperform-type ratings — this reduces near-term upside implied by some street targets and can weigh on sentiment. The Fly: Wedbush lowers PT Benzinga: Citizens Jmp lowers PT
• Negative Sentiment: Pega agreed to pay $7M to resolve investors’ trade-secret claims — a modest financial hit but a headline/legal overhang. Bloomberg Law: $7M settlement
• Negative Sentiment: Significant insider selling activity was flagged in data summaries; heavy insider sales can be perceived negatively by some investors. QuiverQuant: Insider trading and shareholder activity

Wall Street Analysts Forecast Growth

Several research firms have recently commented on PEGA. Wall Street Zen upgraded Pegasystems from a “buy” rating to a “strong-buy” rating in a research note on Saturday, January 31st. DA Davidson raised shares of Pegasystems from a “neutral” rating to a “buy” rating and upped their price target for the company from $60.00 to $85.00 in a report on Wednesday, October 22nd. Barclays raised their price objective on shares of Pegasystems from $58.00 to $67.00 and gave the stock an “equal weight” rating in a report on Thursday, October 23rd. KeyCorp set a $60.00 target price on shares of Pegasystems in a research note on Thursday, February 5th. Finally, Citigroup reiterated a “buy” rating and issued a $73.00 price target (down from $81.00) on shares of Pegasystems in a research note on Thursday. Ten research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat.com, Pegasystems presently has a consensus rating of “Moderate Buy” and an average target price of $66.95.

Pegasystems Stock Performance

The stock has a 50 day moving average of $54.29 and a 200 day moving average of $55.92. The stock has a market capitalization of $6.89 billion, a P/E ratio of 19.01 and a beta of 1.07.

Pegasystems (NASDAQ:PEGA) last posted its earnings results on Tuesday, February 10th. The technology company reported $0.76 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.74 by $0.02. The company had revenue of $504.32 million for the quarter, compared to analysts’ expectations of $494.60 million. Pegasystems had a return on equity of 41.66% and a net margin of 22.54%.The firm’s quarterly revenue was up 2.8% compared to the same quarter last year. During the same period last year, the business posted $0.80 earnings per share. Pegasystems has set its FY 2026 guidance at 2.750-2.750 EPS. On average, research analysts anticipate that Pegasystems Inc. will post 1.89 EPS for the current fiscal year.

Pegasystems Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, January 16th. Investors of record on Friday, January 2nd were given a $0.03 dividend. The ex-dividend date was Friday, January 2nd. This represents a $0.12 annualized dividend and a yield of 0.3%. Pegasystems’s dividend payout ratio (DPR) is currently 8.05%.

Insider Buying and Selling at Pegasystems

In related news, insider Rifat Kerim Akgonul sold 4,000 shares of the stock in a transaction that occurred on Monday, December 8th. The stock was sold at an average price of $60.19, for a total value of $240,760.00. Following the completion of the transaction, the insider directly owned 112,845 shares of the company’s stock, valued at $6,792,140.55. This represents a 3.42% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CFO Kenneth Stillwell sold 14,405 shares of the firm’s stock in a transaction that occurred on Friday, December 5th. The shares were sold at an average price of $57.87, for a total value of $833,617.35. Following the completion of the sale, the chief financial officer owned 131,621 shares in the company, valued at approximately $7,616,907.27. This represents a 9.86% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 108,405 shares of company stock valued at $5,896,127 in the last ninety days. Company insiders own 49.70% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. Hazlett Burt & Watson Inc. bought a new stake in shares of Pegasystems during the third quarter valued at about $28,000. International Assets Investment Management LLC acquired a new stake in shares of Pegasystems in the 4th quarter worth approximately $28,000. Spire Wealth Management boosted its holdings in shares of Pegasystems by 274.2% in the second quarter. Spire Wealth Management now owns 565 shares of the technology company’s stock valued at $31,000 after acquiring an additional 414 shares in the last quarter. Hantz Financial Services Inc. increased its stake in shares of Pegasystems by 321.6% during the third quarter. Hantz Financial Services Inc. now owns 565 shares of the technology company’s stock valued at $32,000 after acquiring an additional 431 shares during the period. Finally, Mather Group LLC. acquired a new position in shares of Pegasystems during the third quarter valued at approximately $33,000. 46.89% of the stock is owned by institutional investors and hedge funds.

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.