Pegasystems Stock Buy Hold or Sell Recommendation

PEGA Stock  USD 94.51  1.94  2.01%   
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Pegasystems is 'Strong Buy'. Macroaxis provides Pegasystems buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding PEGA positions.
  
Check out Pegasystems Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
For information on how to trade Pegasystems Stock refer to our How to Trade Pegasystems Stock guide.
In addition, we conduct extensive research on individual companies such as Pegasystems and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Pegasystems. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in price.

Execute Pegasystems Buy or Sell Advice

The Pegasystems recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Pegasystems. Macroaxis does not own or have any residual interests in Pegasystems or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Pegasystems' advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell PegasystemsBuy Pegasystems
Strong Buy

Market Performance

SolidDetails

Volatility

Very steadyDetails

Hype Condition

Under hypedDetails

Current Valuation

OvervaluedDetails

Odds Of Distress

Very LowDetails

Economic Sensitivity

Almost mirrors the marketDetails

Investor Sentiment

AlarmedDetails

Analyst Consensus

Strong BuyDetails

Financial Strenth (F Score)

StrongDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Pegasystems has a Risk Adjusted Performance of 0.1586, Jensen Alpha of 0.3762, Total Risk Alpha of 0.1088, Sortino Ratio of 0.1867 and Treynor Ratio of 0.5072
Macroaxis provides advice on Pegasystems to complement and cross-verify current analyst consensus on Pegasystems. Our recommendation engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Pegasystems is not overpriced, please check all Pegasystems fundamentals, including its price to book, ebitda, and the relationship between the number of shares shorted and revenue . Given that Pegasystems has a price to earning of 573.19 X, we recommend you to check out Pegasystems market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your recent risk tolerance and investing horizon.

Pegasystems Trading Alerts and Improvement Suggestions

Pegasystems is unlikely to experience financial distress in the next 2 years
Pegasystems has a strong financial position based on the latest SEC filings
About 47.0% of the company outstanding shares are owned by corporate insiders
On 15th of October 2024 Pegasystems paid $ 0.03 per share dividend to its current shareholders
Latest headline from gurufocus.com: Pegasystems Inc Trading Down 3.16 percent on Nov 27

Pegasystems Returns Distribution Density

The distribution of Pegasystems' historical returns is an attempt to chart the uncertainty of Pegasystems' future price movements. The chart of the probability distribution of Pegasystems daily returns describes the distribution of returns around its average expected value. We use Pegasystems price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Pegasystems returns is essential to provide solid investment advice for Pegasystems.
Mean Return
0.50
Value At Risk
-2.87
Potential Upside
3.07
Standard Deviation
2.51
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Pegasystems historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Pegasystems Stock Institutional Investors

Shares
Shannon River Fund Management Llc2024-09-30
788.4 K
Ranger Investment Management Lp2024-09-30
765.9 K
Citadel Advisors Llc2024-09-30
696.4 K
Dimensional Fund Advisors, Inc.2024-09-30
695.4 K
Woodline Partners Lp2024-06-30
622.4 K
Morgan Stanley - Brokerage Accounts2024-06-30
567 K
Aqr Capital Management Llc2024-06-30
554.8 K
First Trust Advisors L.p.2024-06-30
548.1 K
Cadian Capital Management Lp2024-09-30
546.5 K
Vanguard Group Inc2024-09-30
M
Capital Research Global Investors2024-09-30
3.1 M
Note, although Pegasystems' institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Pegasystems Cash Flow Accounts

201920202021202220232024 (projected)
Change In Cash(46.1M)103.5M(11.9M)(14.9M)87.8M92.2M
Free Cash Flow(52.8M)(25.9M)28.7M(13.0M)201.0M211.1M
Depreciation21.4M21.3M28.6M18.8M18.7M14.0M
Other Non Cash Items46.3M29.2M92.5M122.4M65.5M68.8M
Capital Expenditures10.6M25.4M10.5M35.4M16.8M9.6M
Net Income(90.4M)(61.4M)(63.0M)(345.6M)67.8M71.2M
End Period Cash Flow68.4M171.9M160.0M145.1M232.8M244.5M
Dividends Paid9.5M9.6M9.8M9.8M10.0M7.7M
Investments91.6M(296.3M)88.0M49.4M(21.2M)(22.3M)
Change Receivables1.1M(32.3M)(12.0M)(51.2M)(58.8M)(55.9M)
Change To Netincome33.4M7.0M71.7M344.1M395.7M415.5M

Pegasystems Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Pegasystems or Software sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Pegasystems' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Pegasystems stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over Dow Jones
0.38
β
Beta against Dow Jones0.96
σ
Overall volatility
2.48
Ir
Information ratio 0.15

Pegasystems Volatility Alert

Pegasystems has relatively low volatility with skewness of 2.59 and kurtosis of 14.85. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Pegasystems' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Pegasystems' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

Pegasystems Fundamentals Vs Peers

Comparing Pegasystems' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Pegasystems' direct or indirect competition across all of the common fundamentals between Pegasystems and the related equities. This way, we can detect undervalued stocks with similar characteristics as Pegasystems or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Pegasystems' fundamental indicators could also be used in its relative valuation, which is a method of valuing Pegasystems by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Pegasystems to competition
FundamentalsPegasystemsPeer Average
Return On Equity0.38-0.31
Return On Asset0.0768-0.14
Profit Margin0.08 %(1.27) %
Operating Margin(0.03) %(5.51) %
Current Valuation7.98 B16.62 B
Shares Outstanding85.75 M571.82 M
Shares Owned By Insiders47.27 %10.09 %
Shares Owned By Institutions48.68 %39.21 %
Number Of Shares Shorted719.73 K4.71 M
Price To Earning573.19 X28.72 X
Price To Book17.13 X9.51 X
Price To Sales5.47 X11.42 X
Revenue1.43 B9.43 B
Gross Profit949.21 M27.38 B
EBITDA121.06 M3.9 B
Net Income67.81 M570.98 M
Cash And Equivalents275.71 M2.7 B
Cash Per Share3.36 X5.01 X
Total Debt581.27 M5.32 B
Current Ratio1.60 X2.16 X
Book Value Per Share5.51 X1.93 K
Cash Flow From Operations217.78 M971.22 M
Short Ratio1.19 X4.00 X
Earnings Per Share1.40 X3.12 X
Price To Earnings To Growth0.89 X4.89 X
Target Price91.6
Number Of Employees5.41 K18.84 K
Beta1.06-0.15
Market Capitalization8.1 B19.03 B
Total Asset1.51 B29.47 B
Retained Earnings(8.71 M)9.33 B
Working Capital451.97 M1.48 B
Current Asset458.87 M9.34 B
Note: Disposition of 932 shares by Efstathios Kouninis of Pegasystems at 71.0 subject to Rule 16b-3 [view details]

Pegasystems Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Pegasystems . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Pegasystems Buy or Sell Advice

When is the right time to buy or sell Pegasystems? Buying financial instruments such as Pegasystems Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

Use Investing Ideas to Build Portfolios

In addition to having Pegasystems in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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When determining whether Pegasystems offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Pegasystems' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Pegasystems Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Pegasystems Stock:
Check out Pegasystems Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
For information on how to trade Pegasystems Stock refer to our How to Trade Pegasystems Stock guide.
You can also try the Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Is Application Software space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Pegasystems. If investors know Pegasystems will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Pegasystems listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
2.849
Dividend Share
0.12
Earnings Share
1.4
Revenue Per Share
17.485
Quarterly Revenue Growth
(0.03)
The market value of Pegasystems is measured differently than its book value, which is the value of Pegasystems that is recorded on the company's balance sheet. Investors also form their own opinion of Pegasystems' value that differs from its market value or its book value, called intrinsic value, which is Pegasystems' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Pegasystems' market value can be influenced by many factors that don't directly affect Pegasystems' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Pegasystems' value and its price as these two are different measures arrived at by different means. Investors typically determine if Pegasystems is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Pegasystems' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.