PEGA stock: buy or sell?

PEGA stock price: $99.07 -2.73% At close on February 21st, 2020

Updated on:
February 21st, 2020

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After reaching all time highs yesterday, Pegasystems dropped -2.73% to $99.07. On February 13th PEGA boosted an amazing 7.04%.

Pegasystems, Inc. develops, markets, licenses, and software applications for marketing, sales, service, and operations in the United States and internationally.

Should I buy PEGA stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

Currently, 2 buy setups are elegible for Pegasystems stock now:

Buy setupElegible
New all-time highYes
New 52 week highYes
Price crossing up 200d MANo
100d MA crossing up 200d MANo

Is Pegasystems stock a buy?

Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness. Unfortunately, we couldn't find any rating for PEGA stock for the last month.

PEGA stock analysis

Daily outlook

After yesterday all time highs, Pegasystems dropped bitterly to $99.07.

Pegasystems dropped -2.73% to $99.07 after yesterday all time highs. From a daily perspective, PEGA is in a short term uptrend after plotting its last bottom ($87.84, on February/10) higher than the previous bottom, and its last top ($103.13, yesterday) also over the previous top. Now trading in between its last bottom and last top PEGA might consolidate in a plain range, waiting to break out over $103.13 or down under $87.84. Since SMA50d and SMA100d crossed up on November, PEGA price climbed $26.55 per share (36.61%). Since last November when PEGA stock price broke up the SMA100d line, it gained $26.55 (36.61%). Yesterday, PEGA hit a new all time high, pushing higher than on Tuesday tops. Check different trading setups that use ATHs as triggers.

PEGA stock chart (daily)

Weekly outlook

Pegasystems closed this week at $99.07 after topping to a new all time high ($103.13) and remained steady a tight 0.19%. Last week PEGA boosted an outstanding 10.45% in just one week. This week was the third green week in a row.

Price pattern shows an uptrend with two rising tops and bottoms, and now finally trading above the $81.59 resistance. Since late September 2019 when PEGA stock price broke up the SMA40w line, it gained $31.65 (46.94%). Since mid April 2019 when SMA20w and SMA40w crossed up, PEGA price gained $29.84 per share (43.10%).

PEGA stock chart (weekly)

PEGA stock price history

PEGA IPO was on July 19th, 1996 at $5.44 per share1. Since then, PEGA stock surged a 1,721.10%, with a yearly average of 74.80%. If you had invested right after PEGA's IPO a $1,000 in PEGA stock in 1996, it would worth $17,211.00 today.

1: Adjusted price after possible price splits or reverse-splits.

PEGA stock historical price chart

PEGA stock reached all-time highs yesterday with a price of $103.13.

PEGA stock price target

How much a stock will be priced tomorrow or next week is quite unpredictable However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. You should not follow the analysts' PEGA stock price predictions in the hope that they will be met as they may be wrong and not met. For the last 30 days we have not detected any price target for Pegasystems stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

Pegasystems reported outstanding results for 2018-Q4 . Pegasystems skyrocketed Earnings per Share (EPS) by 31.30%, beating experts estimates of $0.16. Pegasystems posted $0.21.
PEGA earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q1-n/a0.33n/a
2017-Q2-n/a0.14n/a
2017-Q32017-11-080.170.05-70.6%
2017-Q42018-02-260.060.1183.3%
2018-Q12018-05-100.160.1-37.5%
2018-Q22018-08-080.06-0.16n/a
2018-Q32018-11-07-0.03-0.13n/a
2018-Q42019-02-200.160.2131.3%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a

Annual financial results

In 2018, Pegasystems annual sales remained steady a tight 0.35% to $891.58 M USD from $888.47 marked in 2017. On the other hand, its earnings margin (compared to revenues) dropped to 1.19%, that is $10.62 million.

PEGA annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$509 M-$38 M7.5%-
2014$590 M15.93%$33 M5.6%-12.58%
2015$683 M15.71%$36 M5.3%9.22%
2016$750 M9.90%$27 M3.6%-25.70%
2017$888 M18.42%$99 M11.1%265.18%
2018$892 M0.35%$11 M1.2%-89.23%

Quarterly financial results

Pegasystems reported $256.36 million in revenues for 2018-Q4, a 26.12% up compared to previous quarter. Reported quarter earnings marked $16.41 M with a profit margin of 6.40%. Profit margin climbed a 10.14% compared to previous quarter when profit margin was -3.73%. When comparing turnover to same quarter last year, Pegasystems sales marked an extraordinary gain and boosted a 24.01%. Looking back to recent quarterly results, Pegasystems posted 2 negative quarters in a row.
PEGA quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q1$223 M-$27 M12.1%-
2017-Q2$198 M-11.32%$11 M5.8%-57.77%
2017-Q3$180 M-9.18%$-2 M-1.0%-115.88%
2017-Q4$207 M14.96%$-25 M-12.1%1,280.74%
2018-Q1$235 M13.77%$12 M5.2%-148.76%
2018-Q2$197 M-16.33%$-10 M-5.3%-185.32%
2018-Q3$203 M3.30%$-8 M-3.7%-27.11%
2018-Q4$256 M26.12%$16 M6.4%-316.33%

Pegasystems ownership

When you are planning to buy shares of a company, it's always worth to have a look its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Pegasystems, 51.65% of all outstanding shares are owned by its staff.

In case of Pegasystems stock, 45.42% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for PEGA stock account 0.00%, no big difference from last month.

For a better understanding, the next table shows ownership data compared to other related stocks:

PEGA
Market cap$7.9 B
Total shares79.3 M
Float shares38.6 M
  - Institutional holdings (%)45.4%
  - Insider holdings (%)51.6%
Shares in short selling0.0%

PEGA summary

Friday, February 21st, 2020
Open$101.36
Close$99.07
Day range$98.56 - $101.48
Previous close$101.85
Session gain-2.73%
Average true range$3.32
50d mov avg$84.98
100d mov avg$79.95
200d mov avg$75.94
Daily patternlt06a
Weekly pattern lb02c

Pegasystems performance

Stocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. In the following table, we compare Pegasystems performance to :
Stock3m6m12m
PEGAPegasystems27.75%42.34%52.70%

Pegasystems competitors

Unfortunately, we could not find any public company that could be defined as Pegasystems competitor. This doesn't mean Pegasystems does not have any competitor in the market, it's just we could not detected it.