CAMBRIDGE, MA — Kenneth Stillwell, the Chief Operating Officer and Chief Financial Officer of Pegasystems Inc . (NASDAQ:PEGA), recently executed a series of stock transactions involving the company's common stock. On November 6, Stillwell sold 4,744 shares at prices ranging from $85.45 to $85.67, amounting to a total sale of approximately $405,706.
In addition to the sales, Stillwell acquired 12,960 shares through the exercise of stock options, priced at $33.90 per share, totaling $439,344. However, a separate transaction involved the disposition of 8,216 shares to cover tax liabilities, valued at $702,632.
Following these transactions, Stillwell holds 17,400 shares of Pegasystems, not accounting for unvested restricted stock units or options awards.
In other recent news, Pegasystems Inc. has shown substantial growth in the third quarter of 2024, marked by a 14% increase in Annual Contract Value (ACV) and a 26% growth in Pega Cloud. The company reported a robust $250 million in cash flow from operations and $246 million in free cash flow. Pegasystems also repurchased $12 million in shares in Q3, with an additional $250 million authorized for repurchase. DA Davidson and Loop Capital, two financial firms, have respectively raised their stock price targets for Pegasystems to $80 and $90, maintaining Neutral and Buy ratings. These revisions follow strong third-quarter performance and notable growth in the company's cloud business segment. Pegasystems' strategic focus on AI and workflow processes and strengthening partnerships with AWS and Google (NASDAQ:GOOGL) Cloud are expected to drive further growth. Despite potential challenges for the upcoming fourth quarter, the company remains optimistic about its year-end performance.
InvestingPro Insights
The recent stock transactions by Pegasystems Inc.'s COO and CFO Kenneth Stillwell come at a time when the company's stock is showing strong performance. According to InvestingPro data, Pegasystems has seen a remarkable 89.46% price total return over the past year, with a 40.66% increase in the last six months alone. This upward trend is further emphasized by the stock trading at 99.42% of its 52-week high, indicating significant investor confidence.
InvestingPro Tips highlight that Pegasystems has maintained dividend payments for 19 consecutive years, demonstrating a commitment to shareholder returns. Additionally, the company is expected to see net income growth this year, with 7 analysts revising their earnings upwards for the upcoming period. This positive outlook aligns with the company's strong financial position, as evidenced by its $1.48 billion in revenue over the last twelve months and a gross profit margin of 74.4%.
However, investors should note that the stock's RSI suggests it may be in overbought territory, which could indicate a potential for a short-term price correction. The company's P/E ratio of 59.7 also suggests a high earnings multiple, which may be a consideration for value-focused investors.
For those interested in a deeper analysis, InvestingPro offers 17 additional tips for Pegasystems, providing a comprehensive view of the company's financial health and market position.
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