Efstathios A. Kouninis, Vice President of Finance and Chief Accounting Officer at Pegasystems Inc . (NASDAQ:PEGA), recently sold 708 shares of the company's common stock. The shares were sold on November 25, 2024, at a price of $94.50 per share, totaling $66,906.
In addition to the sale, Kouninis exercised stock options to acquire 1,875 shares at a price of $47.27 per share, resulting in a transaction valued at $88,631. However, a portion of these shares was used to cover tax liabilities, as indicated by the company's withholding of shares of equal value.
Following these transactions, Kouninis no longer holds any shares directly, according to the Form 4 filing with the Securities and Exchange Commission.
In other recent news, Pegasystems Inc. has demonstrated significant growth in its third-quarter 2024 performance, with a 14% increase in Annual Contract Value (ACV) and 26% growth in Pega Cloud. The software 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.
Financial services firm, DA Davidson, raised its stock price target for Pegasystems to $80 from the previous $70, maintaining a Neutral rating. This adjustment was influenced by the company's strong third-quarter results, particularly in its Cloud business segment. Meanwhile, Loop Capital increased its price target for Pegasystems to $90 from the previous $84, upholding a Buy rating. This decision followed the company's impressive third-quarter results, which surpassed both Loop Capital's and consensus estimates.
Despite challenges anticipated for the fourth quarter, Pegasystems remains optimistic about its year-end performance. The company's strategic focus on AI and workflow processes, as well as strengthening partnerships with AWS and Google (NASDAQ:GOOGL) Cloud, are expected to drive further growth. These recent developments highlight Pegasystems' robust financial performance and promising growth trajectory.
InvestingPro Insights
The recent stock sale by Pegasystems Inc.'s Vice President of Finance and Chief Accounting Officer comes at a time when the company's stock is trading near its 52-week high, with a price that is 97.66% of its peak. This aligns with the strong performance indicated by InvestingPro data, which shows a remarkable year-to-date price total return of 97.67% as of the latest available data.
InvestingPro Tips suggest that Pegasystems has been delivering significant returns, with strong performance over various time frames including a 10.98% return in the last week and an impressive 86.6% return over the past year. This robust stock performance may have influenced the timing of the insider's decision to sell shares.
It's worth noting that despite the high returns, the company is trading at a high P/E ratio of 65.34, which could indicate investor optimism about future growth prospects. This is further supported by an InvestingPro Tip indicating that net income is expected to grow this year, and analysts have revised their earnings upwards for the upcoming period.
For investors seeking a more comprehensive analysis, InvestingPro offers 18 additional tips for Pegasystems, providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.