Larry Weber, Director at Pegasystems PEGA, executed a substantial insider sell on April 29, according to an SEC filing.
What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Tuesday showed that Weber sold 1,100 shares of Pegasystems. The total transaction amounted to $100,705.
During Wednesday’s morning session, Pegasystems shares down by 2.16%, currently priced at $89.19.
Delving into Pegasystems’s Background
Founded in 1983, Pegasystems provides a suite of solutions for customer engagement and business process management. The company’s key offering is the Pega Infinity platform, which combines business process management with customer relationship management applications. The company focuses on enterprise-size customers in the financial, insurance, and healthcare industries.
Pegasystems: Financial Performance Dissected
Revenue Growth: Pegasystems’s revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2025, the company achieved a revenue growth rate of approximately 44.07%. This indicates a substantial increase in the company’s top-line earnings. When compared to others in the Information Technology sector, the company excelled with a growth rate higher than the average among peers.
Holistic Profitability Examination:
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Gross Margin: Achieving a high gross margin of 78.46%, the company performs well in terms of cost management and profitability within its sector.
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Earnings per Share (EPS): Pegasystems’s EPS is below the industry average. The company faced challenges with a current EPS of 0.99. This suggests a potential decline in earnings.
Debt Management: Pegasystems’s debt-to-equity ratio is below the industry average. With a ratio of 0.13, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
Understanding Financial Valuation:
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Price to Earnings (P/E) Ratio: The current P/E ratio of 42.2 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.
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Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 5.12, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Pegasystems’s EV/EBITDA ratio, lower than industry averages at 23.05, indicates attractively priced shares.
Market Capitalization Analysis: The company’s market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.
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The Impact of Insider Transactions on Investments
While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.
From a legal standpoint, the term “insider” pertains to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
A company insider’s new purchase is a indicator of their positive anticipation for a rise in the stock.
While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.
Deciphering Transaction Codes in Insider Filings
For investors, a primary focus lies on transactions occurring in the open market, as indicated in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Pegasystems’s Insider Trades.
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This article was generated by Benzinga’s automated content engine and reviewed by an editor.
