Wall Street Zen Downgrades Pegasystems (NASDAQ:PEGA) to Hold

Pegasystems (NASDAQ:PEGA) was downgraded by equities research analysts at Wall Street Zen from a “strong-buy” rating to a “hold” rating in a report released on Saturday.

Several other analysts also recently issued reports on PEGA. JPMorgan Chase & Co. upped their price objective on Pegasystems from $65.00 to $74.00 and gave the company an “overweight” rating in a research report on Friday, December 5th. Rosenblatt Securities reissued a “buy” rating and issued a $62.00 target price on shares of Pegasystems in a research note on Thursday. Royal Bank Of Canada set a $65.00 price target on shares of Pegasystems and gave the stock an “outperform” rating in a research note on Thursday. KeyCorp set a $60.00 price target on shares of Pegasystems in a report on Thursday, February 5th. Finally, Citizens Jmp reduced their price objective on shares of Pegasystems from $78.00 to $58.00 and set a “market outperform” rating on the stock in a research note on Thursday. Ten research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $66.95.

Pegasystems Price Performance

PEGA stock opened at $43.85 on Friday. The company’s 50 day simple moving average is $53.64 and its 200-day simple moving average is $55.70. The firm has a market capitalization of $7.41 billion, a PE ratio of 20.54 and a beta of 1.07. Pegasystems has a 12 month low of $29.84 and a 12 month high of $68.10.

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. The firm had revenue of $504.32 million during the quarter, compared to the consensus estimate of $494.60 million. Pegasystems had a return on equity of 38.86% and a net margin of 22.54%.The company’s quarterly revenue was up 2.8% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.80 EPS. 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.

Insiders Place Their Bets

In related news, Chairman Alan Trefler sold 45,000 shares of the stock in a transaction on Wednesday, January 21st. The stock was sold at an average price of $49.02, for a total value of $2,205,900.00. Following the transaction, the chairman directly owned 44,394,454 shares of the company’s stock, valued at approximately $2,176,216,135.08. This trade represents a 0.10% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CFO Kenneth Stillwell sold 14,405 shares of the business’s stock in a transaction dated Friday, December 5th. The shares were sold at an average price of $57.87, for a total value 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. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 108,405 shares of company stock valued at $5,896,127 over the last quarter. Company insiders own 49.70% of the company’s stock.

Institutional Trading of Pegasystems

A number of institutional investors have recently added to or reduced their stakes in PEGA. AQR Capital Management LLC raised its position in Pegasystems by 236.2% in the second quarter. AQR Capital Management LLC now owns 4,037,552 shares of the technology company’s stock valued at $217,584,000 after purchasing an additional 2,836,733 shares during the period. State Street Corp grew its stake in shares of Pegasystems by 255.3% in the second quarter. State Street Corp now owns 2,907,677 shares of the technology company’s stock valued at $157,393,000 after buying an additional 2,089,375 shares in the last quarter. Massachusetts Financial Services Co. MA raised its holdings in shares of 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 valued at $219,231,000 after buying an additional 1,875,896 shares during the period. Bares Capital Management Inc. raised its holdings in shares of Pegasystems by 76.6% during the 2nd quarter. Bares Capital Management Inc. now owns 3,542,716 shares of the technology company’s stock valued at $191,767,000 after buying an additional 1,536,726 shares during the period. Finally, American Century Companies Inc. lifted its position in Pegasystems by 357.6% during 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 in the last quarter. 46.89% of the stock is owned by hedge funds and other institutional investors.

Pegasystems News Summary

Here are the key news stories impacting Pegasystems this week:

• Positive Sentiment: Barclays upgraded PEGA, citing accelerating Pega Cloud adoption and strong AI positioning after the recent selloff — the note frames current weakness as a buying opportunity. Barclays upgrade
• Positive Sentiment: Coverage highlighting Pegasystems’ strong 2025 results, legal relief and an enlarged buyback has shifted the investment narrative toward capital returns plus improving fundamentals. Strong 2025 results & buyback
• Positive Sentiment: Management reiterated growth ambitions (targeting $2B revenue) and emphasized “predictable AI” and cloud migration as the path to mid-teens ACV/revenue growth — a roadmap investors view as supportive of durable recurring revenue. $2B revenue target
• Positive Sentiment: Pegasystems is targeting ~15% ACV and revenue growth in 2026 as Pega Cloud adoption accelerates — a concrete growth guide that supports multiple expansion if execution continues. 2026 growth targets
• Positive Sentiment: Rosenblatt reaffirmed a buy rating with a $62 target, signaling at least some analyst conviction behind the recovery narrative. Rosenblatt reaffirmation
• Positive Sentiment: Intraday market commentary noted PEGA “making a mark” on Nasdaq as digital solutions momentum attracts trader interest. Nasdaq momentum
• Neutral Sentiment: Analysts and commentary are reassessing valuation after recent share‑price weakness — useful context for longer‑term investors but not an immediate catalyst. Valuation assessment
• Neutral Sentiment: Comparative coverage contrasts PEGA with peers (e.g., Trend Micro) — background reading for investors sizing competitive risk. Peer contrast
• Negative Sentiment: Wedbush cut its price target from $75 to $60 (still an outperform), reducing upside projection and signaling more conservative near‑term expectations. Wedbush PT cut
• Negative Sentiment: Citizens Jmp lowered its target from $78 to $58, trimming analyst upside and reflecting continued analyst divergence on fair value. Citizens Jmp PT cut
• Negative Sentiment: Pegasystems agreed to pay $7M to resolve investors’ trade‑secret claims — a modest one‑time hit but a headline negative that briefly pressures sentiment. 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.