Kenneth Stillwell, the COO and CFO of Pegasystems Inc . (NASDAQ:PEGA), has sold a total of 2,000 shares of the company's common stock, as reported in a recent filing with the Securities and Exchange Commission. The transactions, carried out on July 1, 2024, resulted in proceeds exceeding $119,000.
Stillwell's stock sale occurred through a series of transactions with prices ranging between $59.25 and $60.22 per share. Specifically, he sold 904 shares at an average price of $59.25 and 1,096 shares at an average price of $60.22. The sales were conducted under a pre-arranged trading plan adopted on November 8, 2023, in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934.
Following the sales, Stillwell's direct ownership in Pegasystems stands at 22,197 shares. It is important to note that this figure does not include shares that are subject to unvested restricted stock units and/or option awards but does include shares acquired on June 30, 2024, through the company's stock purchase plan.
Investors often monitor the trading activity of insiders like Stillwell for insights into a company's performance and management's confidence in the firm's prospects. Pegasystems, a leader in software for customer engagement and operational excellence, is a constituent of the computer processing and data preparation industry.
The details provided in the SEC filing offer transparency regarding the specific number of shares sold at each price, which Stillwell has committed to disclosing upon request to the company or the SEC staff. The reported transactions are part of the public record, ensuring that market participants have access to the same information.
For further details on the transactions, interested parties may refer to the full filing on the SEC's website.
In other recent news, Pegasystems has been the focus of multiple analyst evaluations. RBC Capital maintained its Outperform rating on Pegasystems, emphasizing the stability of its Free Cash Flow (FCF) and other operating model metrics for the year 2027. The firm's analysis highlighted the company's growth targets and the potential contribution of artificial intelligence to its future growth.
Simultaneously, JPMorgan revised its price target for Pegasystems to $70 from $75, maintaining an Overweight rating. JPMorgan anticipates steady performance from Pegasystems, with growth in Annual Contract Value expected to be close to or slightly below the rate at the end of the previous year. The firm also highlighted the company's trend of outperforming guidance and its ongoing innovation around Generation AI technology.
In addition, Citi reaffirmed its Buy rating on Pegasystems, maintaining a price target of $87.00. The firm recently concluded its Upside Catalyst Watch call for Pegasystems, indicating that the anticipated developments during the watch period have been fully considered in the current rating and target. These recent developments underscore the continued interest and analysis of Pegasystems by major financial institutions.
InvestingPro Insights
Kenneth Stillwell's recent stock sale of Pegasystems Inc. shares has drawn attention to the company's financial metrics and market performance. According to InvestingPro Data, Pegasystems boasts a market capitalization of $4.97 billion USD, reflecting its significant presence in the software industry. Despite trading at a high Price / Book multiple of 12.67, the company's P/E Ratio has adjusted to a more moderate 47.82 from the last twelve months as of Q1 2024, indicating a potential alignment with near-term earnings growth.
InvestingPro Tips suggest that Pegasystems is expected to see net income growth this year, which could be an encouraging sign for investors considering the recent insider trading activity. Additionally, the company is trading at a low P/E ratio relative to its anticipated earnings growth, which might be indicative of an undervalued stock in the eyes of some investors. With a strong revenue growth of 13.44% in the last twelve months as of Q1 2024, Pegasystems demonstrates robust financial health and potential for future expansion.
For investors seeking a deeper dive into Pegasystems' financials and market predictions, there are additional InvestingPro Tips available at https://www.investing.com/pro/PEGA. These tips include an analysis of the company's valuation multiples, profitability, and dividend consistency. In fact, Pegasystems has maintained dividend payments for 19 consecutive years, showcasing its commitment to shareholder returns.
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