Is Pegasystems Stock a Good Investment?
Pegasystems Investment Advice | PEGA |
- Examine Pegasystems' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Pegasystems' leadership team and their track record. Good management can help Pegasystems navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Application Software space and any emerging trends that could impact Pegasystems' business and its evolving consumer preferences.
- Compare Pegasystems' performance and market position to its competitors. Analyze how Pegasystems is positioned in terms of product offerings, innovation, and market share.
- Check if Pegasystems pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Pegasystems' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Pegasystems stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Pegasystems is a good investment.
Sell | Buy |
Strong Sell
Market Performance | Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Very Small | Details | |
Economic Sensitivity | Slowly supersedes the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Pegasystems Stock
Researching Pegasystems' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 48.0% of the company outstanding shares are owned by corporate insiders. The company has Price/Earnings To Growth (PEG) ratio of 0.8. Pegasystems last dividend was issued on the 2nd of January 2025. The entity had 2:1 split on the 2nd of April 2014.
To determine if Pegasystems is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Pegasystems' research are outlined below:
| Pegasystems had very high historical volatility over the last 90 days | |
| Pegasystems is unlikely to experience financial distress in the next 2 years | |
| About 48.0% of the company outstanding shares are owned by corporate insiders | |
| Latest headline from insidermonkey.com: Pegasystems Inc. Q4 2024 Earnings Call Transcript |
Pegasystems Quarterly Cost Of Revenue |
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Pegasystems uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Pegasystems. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Pegasystems' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 21st of February 2024 Upcoming Quarterly Report | View | |
| 24th of April 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 21st of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Pegasystems' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Pegasystems' investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2012-08-09 | 2012-06-30 | 0.06 | 0.05 | -0.01 | 16 | ||
2011-08-09 | 2011-06-30 | 0.07 | 0.08 | 0.01 | 14 | ||
2009-03-09 | 2008-12-31 | 0.03 | 0.04 | 0.01 | 33 | ||
2007-05-21 | 2007-03-31 | 0.01 | 0.02 | 0.01 | 100 | ||
2005-11-08 | 2005-09-30 | 0.01 | 0.02 | 0.01 | 100 | ||
2004-04-28 | 2004-03-31 | 0.02 | 0.03 | 0.01 | 50 | ||
2003-07-28 | 2003-06-30 | 0.07 | 0.06 | -0.01 | 14 | ||
2002-10-22 | 2002-09-30 | 0.06 | 0.07 | 0.01 | 16 |
Know Pegasystems' Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Pegasystems is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Pegasystems backward and forwards among themselves. Pegasystems' institutional investor refers to the entity that pools money to purchase Pegasystems' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Shannon River Fund Management Llc | 2024-12-31 | 798.4 K | Aqr Capital Management Llc | 2024-09-30 | 742 K | Wellington Management Company Llp | 2024-12-31 | 739.6 K | Thrivent Financial For Lutherans | 2024-12-31 | 714 K | Ranger Investment Management Lp | 2024-12-31 | 698 K | Citadel Advisors Llc | 2024-09-30 | 696.4 K | Fisher Asset Management, Llc | 2024-12-31 | 638 K | Cadian Capital Management Lp | 2024-09-30 | 546.5 K | Jpmorgan Chase & Co | 2024-09-30 | 528.7 K | Vanguard Group Inc | 2024-12-31 | 5.8 M | Capital Research Global Investors | 2024-12-31 | 3.1 M |
Pegasystems' market capitalization trends
The company currently falls under 'Mid-Cap' category with a current market capitalization of 7.3 B.Market Cap |
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Pegasystems' profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.06 | 0.06 | |
| Return On Capital Employed | 0.18 | 0.19 | |
| Return On Assets | 0.06 | 0.06 | |
| Return On Equity | 0.17 | 0.18 |
Determining Pegasystems' profitability involves analyzing its financial statements and using various financial metrics to determine if Pegasystems is a good buy. For example, gross profit margin measures Pegasystems' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Pegasystems' profitability and make more informed investment decisions.
Pegasystems' Earnings Breakdown by Geography
Please note, the presentation of Pegasystems' financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Pegasystems' management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Pegasystems' management manipulating its earnings.
Evaluate Pegasystems' management efficiency
Pegasystems has return on total asset (ROA) of 0.0613 % which means that it generated a profit of $0.0613 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.2112 %, meaning that it created $0.2112 on every $100 dollars invested by stockholders. Pegasystems' management efficiency ratios could be used to measure how well Pegasystems manages its routine affairs as well as how well it operates its assets and liabilities. The current year's Return On Tangible Assets is expected to grow to 0.06. The current year's Return On Capital Employed is expected to grow to 0.19. At present, Pegasystems' Total Assets are projected to increase significantly based on the last few years of reporting. The current year's Non Current Assets Total is expected to grow to about 456.3 M, whereas Intangible Assets are forecasted to decline to about 3.6 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 6.87 | 7.21 | |
| Tangible Book Value Per Share | 5.92 | 6.21 | |
| Enterprise Value Over EBITDA | 44.13 | 46.33 | |
| Price Book Value Ratio | 13.57 | 14.25 | |
| Enterprise Value Multiple | 44.13 | 46.33 | |
| Price Fair Value | 13.57 | 14.25 | |
| Enterprise Value | 270.3 M | 240.2 M |
At Pegasystems, effective management practices are pivotal to sustaining long-term profitability. We delve into financial metrics and market conditions to provide a comprehensive analysis of the stock's prospects.
Basic technical analysis of Pegasystems Stock
As of the 18th of February 2025, Pegasystems holds the Risk Adjusted Performance of 0.0135, semi deviation of 4.08, and Coefficient Of Variation of 12442.59. Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of Pegasystems, as well as the relationship between them.Pegasystems' insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Pegasystems insiders, such as employees or executives, is commonly permitted as long as it does not rely on Pegasystems' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Pegasystems insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Pegasystems' Outstanding Corporate Bonds
Pegasystems issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Pegasystems uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Pegasystems bonds can be classified according to their maturity, which is the date when Pegasystems has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| MPLX LP 4125 Corp BondUS55336VAK61 | View | |
| MPLX LP 4875 Corp BondUS55336VAJ98 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| US705573AB99 Corp BondUS705573AB99 | View | |
| Valero Energy Partners Corp BondUS91914JAA07 | View |
Understand Pegasystems' technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Pegasystems' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0135 | |||
| Market Risk Adjusted Performance | 0.0439 | |||
| Mean Deviation | 1.84 | |||
| Semi Deviation | 4.08 | |||
| Downside Deviation | 4.16 | |||
| Coefficient Of Variation | 12442.59 | |||
| Standard Deviation | 3.19 | |||
| Variance | 10.18 | |||
| Information Ratio | 0.0046 | |||
| Jensen Alpha | 0.0151 | |||
| Total Risk Alpha | 0.0107 | |||
| Sortino Ratio | 0.0035 | |||
| Treynor Ratio | 0.0339 | |||
| Maximum Drawdown | 26.26 | |||
| Value At Risk | (2.97) | |||
| Potential Upside | 2.98 | |||
| Downside Variance | 17.3 | |||
| Semi Variance | 16.68 | |||
| Expected Short fall | (1.71) | |||
| Skewness | (3.52) | |||
| Kurtosis | 21.93 |
| Risk Adjusted Performance | 0.0135 | |||
| Market Risk Adjusted Performance | 0.0439 | |||
| Mean Deviation | 1.84 | |||
| Semi Deviation | 4.08 | |||
| Downside Deviation | 4.16 | |||
| Coefficient Of Variation | 12442.59 | |||
| Standard Deviation | 3.19 | |||
| Variance | 10.18 | |||
| Information Ratio | 0.0046 | |||
| Jensen Alpha | 0.0151 | |||
| Total Risk Alpha | 0.0107 | |||
| Sortino Ratio | 0.0035 | |||
| Treynor Ratio | 0.0339 | |||
| Maximum Drawdown | 26.26 | |||
| Value At Risk | (2.97) | |||
| Potential Upside | 2.98 | |||
| Downside Variance | 17.3 | |||
| Semi Variance | 16.68 | |||
| Expected Short fall | (1.71) | |||
| Skewness | (3.52) | |||
| Kurtosis | 21.93 |
Consider Pegasystems' intraday indicators
Pegasystems intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Pegasystems stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Pegasystems Corporate Filings
F4 | 14th of February 2025 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
8K | 12th of February 2025 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
13A | 12th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
Pegasystems Stock media impact
Far too much social signal, news, headlines, and media speculation about Pegasystems that are available to investors today. That information is available publicly through Pegasystems media outlets and privately through word of mouth or via Pegasystems internal channels. However, regardless of the origin, that massive amount of Pegasystems data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Pegasystems news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Pegasystems relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Pegasystems' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Pegasystems alpha.
Pegasystems Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Pegasystems can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Pegasystems Historical Investor Sentiment
Investor biases related to Pegasystems' public news can be used to forecast risks associated with an investment in Pegasystems. The trend in average sentiment can be used to explain how an investor holding Pegasystems can time the market purely based on public headlines and social activities around Pegasystems. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Pegasystems' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Pegasystems and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Pegasystems news discussions. The higher the estimate score, the more favorable the investor's outlook on Pegasystems.
Pegasystems Maximum Pain Price Across March 21st 2025 Option Contracts
Pegasystems' options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Pegasystems close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Pegasystems' options.
Pegasystems Corporate Management
| Leon Trefler | Sr. VP of Global Customer Success | Profile | |
| Efstathios Kouninis | Chief Accounting Officer and VP of Fin. | Profile | |
| Peter Welburn | Vice Relations | Profile | |
| Katherine Parente | Chief Officer | Profile | |
| Matthew JD | Chief VP | Profile | |
| Kerim Akgonul | Chief Officer | Profile | |
| Don Schuerman | CTO Strategy | Profile |
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in 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. For information on how to trade Pegasystems Stock refer to our How to Trade Pegasystems Stock guide.You can also try the Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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 (0.19) | Dividend Share 0.12 | Earnings Share 1.11 | Revenue Per Share | Quarterly Revenue Growth 0.035 |
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.
In summary, please note that there is a difference between Pegasystems' value and its price, as these two are different measures arrived at by various 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.