William Blair Cuts Earnings Estimates for Pegasystems

Pegasystems Inc. (NASDAQ:PEGA) – Equities researchers at William Blair lowered their FY2025 earnings estimates for Pegasystems in a research note issued to investors on Wednesday, October 22nd. William Blair analyst J. Roberge now anticipates that the technology company will earn $1.29 per share for the year, down from their previous forecast of $1.30. The consensus estimate for Pegasystems’ current full-year earnings is $1.89 per share. William Blair also issued estimates for Pegasystems’ Q4 2025 earnings at $0.47 EPS, Q1 2026 earnings at $0.35 EPS, Q2 2026 earnings at $0.15 EPS, Q3 2026 earnings at $0.15 EPS and FY2026 earnings at $1.34 EPS.

A number of other analysts have also weighed in on the stock. Wedbush raised their price target on shares of Pegasystems from $70.00 to $75.00 and gave the company an “outperform” rating in a report on Thursday, October 23rd. Citigroup raised their price target on shares of Pegasystems from $66.00 to $70.00 and gave the company a “buy” rating in a report on Thursday, July 24th. Rosenblatt Securities raised their price target on shares of Pegasystems from $65.00 to $70.00 and gave the company a “buy” rating in a report on Thursday, October 23rd. Royal Bank Of Canada reissued an “outperform” rating and issued a $80.00 price target (up previously from $70.00) on shares of Pegasystems in a report on Wednesday, October 22nd. Finally, DA Davidson upgraded shares of Pegasystems from a “neutral” rating to a “buy” rating and increased their price objective for the company from $60.00 to $85.00 in a report on Wednesday, October 22nd. Nine investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $69.61.

Pegasystems Price Performance

Shares of Pegasystems stock opened at $65.49 on Monday. The firm has a market cap of $11.11 billion, a P/E ratio of 43.95 and a beta of 1.08. The firm has a 50 day simple moving average of $57.02 and a 200 day simple moving average of $52.23. Pegasystems has a fifty-two week low of $29.84 and a fifty-two week high of $68.10.

Pegasystems (NASDAQ:PEGA) last issued its quarterly earnings results on Tuesday, October 21st. The technology company reported $0.30 earnings per share for the quarter, beating analysts’ consensus estimates of $0.18 by $0.12. The business had revenue of $381.35 million during the quarter, compared to analyst estimates of $351.95 million. Pegasystems had a net margin of 16.05% and a return on equity of 43.49%. Pegasystems’s revenue for the quarter was up 17.3% compared to the same quarter last year. During the same quarter last year, the business posted $0.39 earnings per share.

Pegasystems Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, October 15th. Investors of record on Wednesday, October 1st were issued a $0.03 dividend. This represents a $0.12 annualized dividend and a yield of 0.2%. The ex-dividend date was Wednesday, October 1st. Pegasystems’s dividend payout ratio is currently 8.05%.

Insiders Place Their Bets

In other news, insider Leon Trefler sold 14,865 shares of Pegasystems stock in a transaction on Thursday, October 23rd. The shares were sold at an average price of $63.40, for a total transaction of $942,441.00. Following the transaction, the insider directly owned 118,799 shares of the company’s stock, valued at $7,531,856.60. This trade represents a 11.12% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CAO Efstathios A. Kouninis sold 4,425 shares of Pegasystems stock in a transaction on Monday, October 27th. The stock was sold at an average price of $67.25, for a total transaction of $297,581.25. Following the transaction, the chief accounting officer directly owned 206 shares in the company, valued at approximately $13,853.50. This represents a 95.55% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 207,600 shares of company stock valued at $12,232,922 over the last three months. 50.10% of the stock is owned by insiders.

Hedge Funds Weigh In On Pegasystems

A number of hedge funds and other institutional investors have recently made changes to their positions in PEGA. Spire Wealth Management boosted its position in shares of Pegasystems by 274.2% during the second quarter. Spire Wealth Management now owns 565 shares of the technology company’s stock worth $31,000 after purchasing an additional 414 shares in the last quarter. Mather Group LLC. bought a new position in shares of Pegasystems during the third quarter worth $33,000. SBI Securities Co. Ltd. boosted its position in shares of Pegasystems by 139.7% during the first quarter. SBI Securities Co. Ltd. now owns 549 shares of the technology company’s stock worth $38,000 after purchasing an additional 320 shares in the last quarter. MAI Capital Management boosted its position in shares of Pegasystems by 124.5% during the second quarter. MAI Capital Management now owns 696 shares of the technology company’s stock worth $38,000 after purchasing an additional 386 shares in the last quarter. Finally, Blue Trust Inc. boosted its position in shares of Pegasystems by 902.9% during the third quarter. Blue Trust Inc. now owns 682 shares of the technology company’s stock worth $39,000 after purchasing an additional 614 shares in the last quarter. 46.89% of the stock is owned by institutional investors.

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.