Is Pegasystems Inc. (PEGA) A Good Investment?

Pegasystems Inc. (NASDAQ:PEGA) finished Friday with an addition of $0.51 to close at $99.53, an upside of 0.52 percent. An average of 325,300 shares of common stock have been traded in the last five days. There was a gain of $0.32 in the past week, and it reached a new high 7 times over the past 12 months. The last 20 days have seen an average of 400,520 shares traded, while the 50-day average volume stands at 330,096.

PEGA stock has decreased by -8.26% in the last month. The company shares reached their 1-month lowest point of $94.47 on 01/10/22. With the stock rallying to its 52-week high on 01/03/22, shares of the company touched a low of $94.47 and a high of $148.80 in 52 weeks. It has reached a new high 1 time so far this year and lost -10.99% or -$12.29 in price. In spite of this, the price is down -33.11% from the 52-week high.


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Insider Transactions

12 days have passed since Pegasystems Inc. (PEGA) last reported insider trading activity. STILLWELL KENNETH, who is COO, CFO, most recently acquired $1,000 shares at $111.73 per share on Jan 03. In this transaction, the insider spent $111,730. VP of Finance & CAO, KOUNINIS EFSTATHIOS A, disposed of 500 shares at a price of $106.00 on Dec 17. The insider now owns more than $53,000 worth of shares. Prior to that, VP of Finance & CAO KOUNINIS EFSTATHIOS A went on to Sale 250 shares at $116.00 each on Dec 13. An amount of $29,000 was transacted.

Valuation Metrics

Pegasystems Inc. (PEGA) has a trailing price-to-earnings (P/E) ratio of 30.15 for the broader industry and 34.71 for the sector. The stock’s beta is 1.14. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 6.86, the price-to-book (PB) ratio at 17.65.

The company’s most recent quarterly dividend payment was $0.03 a share, without any change from last year. Its latest increase dividend $0.0150 reported on Tuesday May 27 2014.

The quick ratio of Pegasystems Inc. for the three months ended September 29 was 2.10, and the current ratio was 2.10, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 1.28 and a total debt to equity ratio of 1.28 for the quarter ending September 29. Its gross profit as reported stood at $706.6 million compared to revenue of $1.02 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Pegasystems Inc.’s return on assets was -1.40%. For the broader industry, ROE averaged 3.97 over the past year.

Earnings Surprise

For the three-month period that ended September 29, Pegasystems Inc. had $235.44 million in cash. In the quarter under review, the net income was down than the previous quarter. The company posted a net income of -$56.47 million in the quarter, while revenues of $37.29 million were grew 65.88%. The analyst consensus anticipated Pegasystems Inc.’s latest quarter earnings to come in at -$0.27 per share, but it turned out to be -$0.4, a -48.10% surprise. For the quarter, EBITDA amounted to -$45.02 million. Shareholders own equity worth $81.67 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Pegasystems Inc. (PEGA) price momentum. RSI 9-day as of the close on 14 January was 37.74%, suggesting the stock is Neutral, with historical volatility in this time frame at 70.63%.

As of today, PEGA’s price is $100.87 +0.32% or $0.32 from its 5-day moving average. PEGA is currently trading -4.48% lower than its 20-day SMA and -25.30% lower than its 100-day SMA. However, the stock’s current price level is -18.28% below the SMA50 and -15.65% below the SMA200.

The stochastic %K and %D were 28.30% and 32.85%, respectively, and the average true range (ATR) was 4.77. With the 14-day stochastic at 23.63% and the average true range at 4.64, the RSI (14) stands at 38.67%. The stock has reached -0.60 on the 9-day MACD Oscillator while the 14-day reading was at -4.54.

Analyst Ratings

RBC Capital Mkts launched coverage on Pegasystems Inc. (NASDAQ: PEGA) in its analyst report released on June 11, 2021. The firm assigned the stock a an Outperform rating. The consensus rating for Pegasystems Inc. (PEGA) among analysts is Buy. According to current brokerage recommendations, 0 brokerage firms advise that investors sell PEGA, while 1 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 1 analysts, while 10 others rate it as a “buy”.

What is PEGA’s price target for the next 12 months?

Analysts predict a range of price targets between $110.00 and $180.00, with a median target of $165.00. Taking a look at these predictions, the average price target given by analysts for Pegasystems Inc. (PEGA) stock is $158.10.

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