Pegasystems (NASDAQ:PEGA) Price Target Cut to $60.00 by Analysts at Wedbush

Pegasystems (NASDAQ:PEGA) had its target price lowered by Wedbush from $75.00 to $60.00 in a research note published on Thursday, MarketBeat Ratings reports. The brokerage currently has an outperform rating on the technology company’s stock.

Other analysts also recently issued reports about the company. Citizens Jmp reduced their price objective on Pegasystems from $78.00 to $58.00 and set a “market outperform” rating on the stock in a research report on Thursday. DA Davidson raised shares of Pegasystems from a “neutral” rating to a “buy” rating and boosted their target price for the company from $60.00 to $85.00 in a research note on Wednesday, October 22nd. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Pegasystems in a research note on Monday, December 29th. KeyCorp set a $60.00 price target on shares of Pegasystems in a report on Thursday, February 5th. Finally, Citigroup reissued a “buy” rating and issued a $73.00 price objective (down previously from $81.00) on shares of Pegasystems in a research report 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 has a consensus rating of “Moderate Buy” and a consensus target price of $66.95.

Pegasystems Price Performance

PEGA stock opened at $40.59 on Thursday. The company’s 50 day simple moving average is $53.96 and its 200-day simple moving average is $55.81. Pegasystems has a 12 month low of $29.84 and a 12 month high of $68.10. The firm has a market capitalization of $6.86 billion, a PE ratio of 19.01 and a beta of 1.07.

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

Pegasystems Dividend Announcement

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

Insider Activity

In other news, Chairman Alan Trefler sold 45,000 shares of the business’s stock in a transaction dated Wednesday, January 21st. The stock was sold at an average price of $49.02, for a total transaction of $2,205,900.00. Following the completion of the sale, the chairman owned 44,394,454 shares in the company, valued at approximately $2,176,216,135.08. The trade was a 0.10% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Kenneth Stillwell sold 14,405 shares of the stock in a transaction that occurred on Friday, December 5th. The stock was sold at an average price of $57.87, for a total transaction of $833,617.35. Following the sale, the chief financial officer directly owned 131,621 shares of the company’s stock, valued at approximately $7,616,907.27. This trade represents a 9.86% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 108,405 shares of company stock valued at $5,896,127 in the last three months. Corporate insiders own 49.70% of the company’s stock.

Institutional Trading of Pegasystems

Several large investors have recently added to or reduced their stakes in PEGA. AQR Capital Management LLC boosted its position 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 lifted its position in Pegasystems by 255.3% during the 2nd quarter. State Street Corp now owns 2,907,677 shares of the technology company’s stock worth $157,393,000 after acquiring an additional 2,089,375 shares in the last quarter. Massachusetts Financial Services Co. MA lifted its position in Pegasystems by 86.3% during the 2nd quarter. Massachusetts Financial Services Co. MA now owns 4,050,075 shares of the technology company’s stock worth $219,231,000 after acquiring an additional 1,875,896 shares in the last quarter. Bares Capital Management Inc. lifted its position in Pegasystems by 76.6% during the 2nd quarter. Bares Capital Management Inc. now owns 3,542,716 shares of the technology company’s stock worth $191,767,000 after acquiring an additional 1,536,726 shares in the last quarter. Finally, American Century Companies Inc. boosted its holdings in Pegasystems by 357.6% in the 3rd quarter. American Century Companies Inc. now owns 1,586,793 shares of the technology company’s stock worth $91,241,000 after acquiring an additional 1,239,998 shares during the period. 46.89% of the stock is currently owned by institutional investors and hedge funds.

Pegasystems News Summary

Here are the key news stories impacting Pegasystems this week:

• Positive Sentiment: Q4 results beat on EPS and revenue, with management citing AI-driven demand, rising cloud ACV and expanding backlog—this is the primary catalyst supporting the rally. Q4 Earnings Beat
• Positive Sentiment: Analysts and boutiques remain supportive: Rosenblatt reaffirmed a Buy with a $62 PT, and William Blair reiterated a Buy citing accelerating ACV and cloud growth—these keep upside narratives intact. Rosenblatt Note
• Positive Sentiment: CEO Alan Trefler and company messaging emphasize a push to a ~$2B revenue milestone and a focus on “predictable AI,” reinforcing investor expectations for multi‑year cloud/AI revenue acceleration. Pega $2B Revenue Target
• Neutral Sentiment: Analyses and transcripts provide additional context on metrics, guidance and strategy—useful for modeling but not immediate price drivers. Earnings Presentation
• Neutral Sentiment: Standalone pieces on valuation and peer comparisons are circulating as investors reassess multiples after the recent weakness. Valuation Assessment
• Negative Sentiment: Several firms cut price targets this morning—Wedbush lowered its PT to $60 (still an outperform) and Citizens JMP cut to $58—these downgrades trim near‑term upside expectations. Wedbush Price Target Cut
• Negative Sentiment: Shares dipped earlier despite the beat, reflecting investor focus on margin/earnings details and guidance cadence—so some profit‑taking and skepticism remain. Shares Fall After Q4
• Negative Sentiment: Pega agreed to pay $7M to resolve investors’ trade-secret claims—a modest cash hit but a legal overhang to factor into near-term free cash flow and risk assessments. Legal Settlement

About Pegasystems

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.