CAMBRIDGE, Mass.—Larry Weber, a director at Pegasystems Inc . (NASDAQ:PEGA), recently sold 1,900 shares of the company's common stock. The shares were sold at an average price of $87.83, amounting to a total transaction value of $166,877.
Following this sale on November 11, Weber holds 8,859 shares in the company. Additionally, Weber made a gift of 630 shares to family members on November 12, which did not involve any monetary exchange.
These transactions were reported in a Form 4 filing with the Securities and Exchange Commission.
In other recent news, Pegasystems Inc. reported significant 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's strong performance was further underscored by a record $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 adjusted its stock price target for Pegasystems to $80.00, up from the previous $70.00, while maintaining a Neutral rating on the stock. The firm's decision was influenced by Pegasystems' robust third-quarter performance and the company's strategic initiative, Blueprint, aimed at refining Pegasystems' go-to-market approach.
Loop Capital, a financial services firm, also raised its price target on Pegasystems to $90, up from the previous $84, maintaining a Buy rating on the stock. This decision followed Pegasystems' impressive third-quarter financial results, which surpassed both Loop Capital's and the consensus estimates. The firm's analysis suggests that Pegasystems' sales execution and financial performance are on an upward trajectory.
Despite acknowledging challenges for the upcoming fourth quarter, Pegasystems remains optimistic about its year-end performance. The company's strategic focus on AI and workflow processes and strengthening partnerships with AWS and Google (NASDAQ:GOOGL) Cloud are expected to drive further growth. These are the recent developments in the company's operations.
InvestingPro Insights
While Larry Weber's recent stock sale might raise eyebrows, a closer look at Pegasystems Inc. (NASDAQ:PEGA) reveals a company with strong momentum and positive financial indicators. According to InvestingPro data, PEGA has shown impressive performance, with a 98.9% price total return over the past year and an 83.2% return year-to-date. The stock is currently trading near its 52-week high, reflecting investor confidence in the company's prospects.
InvestingPro Tips highlight that PEGA's net income is expected to grow this year, and seven analysts have revised their earnings upwards for the upcoming period. This positive outlook is supported by the company's solid financial performance, with a revenue of $1.48 billion in the last twelve months as of Q3 2024 and a gross profit margin of 74.4%.
Despite the director's sale, PEGA maintains a strong market position with a market capitalization of $7.78 billion. The company has also demonstrated its commitment to shareholders by maintaining dividend payments for 19 consecutive years, although the current dividend yield stands at a modest 0.13%.
For investors seeking more comprehensive analysis, InvestingPro offers 17 additional tips for PEGA, providing a deeper understanding of the company's financial health and market position.
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