Loop Capital has recently raised Pegasystems Inc. (PEGA) stock to Buy rating, as announced on August 1, 2024, according to Finviz. Earlier, on July 31, 2024, JMP Securities had raised the stock from a Mkt Perform to Mkt Outperform, setting a price target of $85. William Blair also raised Outperform rating. Additionally, Barclays raised Equal Weight rating on January 12, 2024, with a target price of $52. Exane BNP Paribas analysts, in their report published on July 5, 2023, also raised Outperform rating and set a price target of $50 for Pegasystems Inc.’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
Pegasystems Inc. (PEGA) Stock Trading Recap
On Tuesday, Pegasystems Inc. (PEGA) stock saw a decline, ending the day at $67.81 which represents a decrease of $-3.07 or -4.33% from the prior close of $70.88. The stock opened at $70.41 and touched a low of $67.55 during the day, reaching a high of $70.76. The volume of shares traded was 0.72 million exceeding the average volume of 0.61 million.
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PEGA Stock Performance and Moving Averages
In recent trading, Pegasystems Inc. (PEGA) stock price has shown some volatility, fluctuating -1.37% over the last five trades and 1.16% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 3.73%, and it has gained 17.22% in the previous three months. Currently, PEGA is trading at 0.28%, 6.04%, and 16.22% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, PEGA, a Technology sector stock, is trading -6.78% below its 52-week high but remains 80.06% above its 52-week low. The Average True Range (ATR) (14 days) of 2.12 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Pegasystems Inc.’s Profitability and Valuation Ratios
Pegasystems Inc.’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 12.64% and a profit margin of 8.72%, with a gross margin of 3.73%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Pegasystems Inc.’s market capitalization stands at $5.79 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 46.65, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 21.98. Additionally, the Price-to-Sales Ratio is 3.89, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 13.3, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 50.29% of Pegasystems Inc. (PEGA)’s shares, while financial institutions hold 45.41%.
Notable insider trades include JONES RICHARD H, Director at Pegasystems Inc. (PEGA), who sold 4729 shares on Aug 23 ’24, at $70.03 each, totaling $0.33 million. On Aug 21 ’24, STILLWELL KENNETH, COO, CFO, sold 3019 shares for $67.55 each, amounting to $0.20 million. Additionally, on Aug 01 ’24, STILLWELL KENNETH sold 3000 shares at $69.39 each, generating $0.21 million.
