Pegasystems shareholders approve stock split and authorized share increase

Pegasystems Inc . (NASDAQ:PEGA), a software company with an $8.58 billion market capitalization and impressive 77% return over the past year, has received shareholder approval for a two-for-one forward stock split and an increase in authorized common shares from 200 million to 400 million, according to an SEC filing published Wednesday.

The company’s 2025 Annual Meeting of Shareholders, held on June 17, saw the approval of several key proposals including the election of eight directors to serve until the 2026 annual meeting. Shareholders also ratified the selection of Deloitte & Touche LLP as the company’s independent registered public accounting firm for 2025.

The stock split, which was initially announced on February 12, will be effected as a stock dividend. Shareholders of record as of June 10 will receive one additional share for each share held, with distribution expected on June 20. Trading on a post-split basis is anticipated to begin on June 23. According to InvestingPro, PEGA shows multiple positive indicators, with 16+ additional ProTips available for subscribers.

As a result of the split, proportionate adjustments will be made to the number of shares issuable under Pegasystems’ equity incentive plans and the number of shares underlying outstanding equity awards, as well as to the exercise prices of outstanding stock options.

Shareholders also approved the amended and restated Pegasystems Inc. 2004 Long-Term Incentive Plan and gave a favorable non-binding advisory vote on the compensation of the company’s named executive officers.

The company filed the Articles of Amendment with the Massachusetts Secretary of the Commonwealth on June 17 to effect the charter amendment increasing the authorized shares.

In other recent news, Pegasystems has updated its financial guidance, leading to several revisions in stock price targets by analysts. Citi raised its price target for Pegasystems to $131, following the company’s investor day where it announced a $100 million increase in revenue and an $0.84 rise in EPS estimates. Additionally, the company projects $2 billion in annual contract value by 2027 and over $700 million in free cash flow by 2028. Rosenblatt and Needham both increased their price targets to $112, emphasizing the company’s new AI-related product announcements and adjusted fiscal year 2025 revenue guidance to $1.7 billion, reflecting a 13.6% year-over-year growth. KeyBanc maintained its Overweight rating and a $112 price target, citing efficiency gains from Pegasystems’ Blueprint tool, which is expected to enhance sales capacity and margin expansion. DA Davidson also adjusted its price target to $95, noting the strategic importance of Blueprint in customer and partner engagements. These developments underscore Pegasystems’ efforts to enhance its market position and financial performance through strategic initiatives and product innovations.

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