Validea Motley Fool Strategy Daily Upgrade Report - 6/26/2025
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 26 2025
0mins
Should l Buy PEGA?
Source: NASDAQ.COM
Validea's Small-Cap Growth Investor Model: The model has upgraded PEGASYSTEMS INC (PEGA) from a 65% to a 72% rating based on its strong fundamentals and stock valuation, indicating growing interest in the company.
Company Overview: Pegasystems Inc. specializes in enterprise transformation through AI decision-making and workflow automation, offering a software portfolio that enhances customer experiences and operational efficiency across various markets.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy PEGA?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on PEGA
Wall Street analysts forecast PEGA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PEGA is 76.00 USD with a low forecast of 67.00 USD and a high forecast of 85.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
8 Analyst Rating
7 Buy
1 Hold
0 Sell
Strong Buy
Current: 39.880
Low
67.00
Averages
76.00
High
85.00
Current: 39.880
Low
67.00
Averages
76.00
High
85.00
About PEGA
Pegasystems Inc. is an enterprise transformation company that helps organizations Build for Change with enterprise artificial intelligence (AI) decisioning and workflow automation. It develops, markets, licenses, hosts and supports enterprise software that helps organizations make decisions and processes in real-time. Its platform for enterprise AI decisioning and workflow automation enables clients to personalize customer experiences, automate customer service, and streamline operations, business processes, and workflows. Its Pega Infinity is a software portfolio. Its applications and platform intersect with and encompass several software markets, including Customer Relationship Management, Digital Process Automation, Low-code application development platforms, Robotic Process Automation, Business Rules Management Systems, and Decision Management. Pega Platform, software for AI-powered workflow automation, boosts the efficiency of its clients’ processes and operational workflow.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Analysis of Pegasystems Dividend Predictions
- Dividend Yield Expectation: Pegasystems Inc's latest dividend is projected at 0.3%, closely tied to the company's profitability fluctuations, reflecting investor caution regarding future dividend stability.
- Historical Volatility Analysis: The annualized volatility for Pegasystems, calculated from the last 251 trading days, stands at 56%, indicating significant price fluctuations and necessitating careful risk-reward assessments by investors.
- Options Trading Dynamics: As of Thursday afternoon, the put volume among S&P 500 components reached 1.60 million contracts, while call volume hit 2.74 million, indicating a market preference for call options that could influence stock price movements.
- Options Market Trends: The current put:call ratio of 0.59 is below the long-term median of 0.65, suggesting increased investor confidence in future price increases, which may impact Pegasystems' market performance.
See More
Pegasystems Inc (PEGA) Stock Enters Oversold Territory with RSI at 27.8
- Oversold Signal: Pegasystems Inc's stock price fell to $47.27 on Wednesday, with an RSI of 27.8 indicating oversold conditions, suggesting potential buying opportunities for investors.
- Relative Strength Index Comparison: PEGA's RSI of 27.8, compared to the average RSI of 58.0 for dividend stocks, indicates that recent heavy selling may be exhausting, attracting dividend investors seeking higher yields.
- Dividend Yield Analysis: With a recent annualized dividend of $0.12 per share, PEGA's yield stands at 0.24% based on the current price of $51.04, presenting potential income opportunities for investors.
- Investor Sentiment Shift: While dividends are often unpredictable, analyzing historical dividend data can help investors assess the likelihood of PEGA's dividend continuity, influencing their investment decisions.
See More
PEGA Stock Fluctuation: 52-Week Low at $29.83, High at $68.10
- Stock Price Analysis: PEGA's 52-week low is $29.83, with a high of $68.10, and a last trade at $53.00, indicating significant price volatility over the past year, which may impact investor confidence and market expectations.
- Technical Indicator Focus: PEGA's stock price has fallen below its 200-day moving average, potentially signaling further downside risk in the short term, prompting investors to closely monitor market dynamics to adjust their strategies.
- Market Sentiment Assessment: Although the current stock price is in the middle of its 52-week range, investor sentiment regarding PEGA's future performance remains cautious, which could affect short-term capital inflows.
- Industry Comparison Perspective: PEGA's price fluctuations contrast with nine other high-dividend stocks that recently fell below their 200-day moving averages, reflecting varying market reactions to high-dividend stocks and potentially influencing overall investment portfolio risk management.
See More
U.S. Stocks Rally as Strong Earnings Lift Nasdaq 1.2%
- Semiconductor Surge: Taiwan Semiconductor's blockbuster earnings reignited enthusiasm, leading AMD and ASML shares to rise about 6% each, reflecting a robust recovery in the AI supply chain and boosting market confidence.
- Strong Financials: Goldman Sachs and Morgan Stanley saw their stocks rise by 4% and 5% respectively after reporting earnings, reassuring investors about the profitability of major financial institutions amid mixed sector results.
- Regional Bank Rebound: The SPDR S&P Regional Banking ETF's surge helped lift small-cap stocks, with the Russell 2000 index hitting record highs for the tenth consecutive session, pushing year-to-date gains above 7%, indicating optimism towards small businesses.
- Positive Economic Data: Initial jobless claims fell to 198,000, significantly below the forecast of 215,000, showcasing the resilience of the U.S. labor market and further bolstering investor confidence in economic recovery.
See More
Pegasystems Launches GenAI-Powered Compliance Solution to Transform Client Onboarding
- Compliance Process Innovation: Pegasystems' latest version of Pega Client Lifecycle Management (CLM) integrates GenAI-powered automation features that significantly enhance client onboarding and due diligence efficiency, enabling financial institutions to reduce compliance costs and improve accuracy.
- Cost Savings Potential: According to McKinsey, banks allocate up to 15% of full-time staff to KYC and anti-money laundering, and the new system's automation capabilities are expected to significantly reduce this percentage, freeing up human resources for higher-value tasks.
- Real-Time Compliance Monitoring: The new system provides real-time visibility into compliance status and case progress, combined with GenAI-powered summaries and monitoring capabilities, allowing financial institutions to better manage customer risk and enhance decision-making efficiency.
- Enhanced User Experience: With intelligent self-service workflows, customers can independently complete onboarding processes, increasing customer satisfaction while allowing staff to focus on more strategic tasks, thereby enhancing overall business efficiency.
See More
Pegasystems Declares $0.03 Quarterly Cash Dividend
- Dividend Maintenance: Pegasystems has declared a quarterly cash dividend of $0.03 per share, maintaining its current dividend program, which reflects the company's ongoing commitment to stable cash flow and shareholder returns.
- Payment Schedule: The Q1 2026 dividend will be paid on January 16, 2026, to shareholders of record as of January 2, 2026, ensuring timely returns for investors and bolstering their confidence in the company.
- Support for Enterprise Transformation: As The Enterprise Transformation Company™, Pegasystems leverages its platform to assist many of the world's leading businesses in addressing critical challenges, further solidifying its market position in enterprise AI decisioning and workflow automation.
- Continuous Innovation: Since 1983, Pegasystems has focused on building scalable and flexible architecture to meet customer demands and drive future transformations, showcasing the company's adaptability and foresight in a rapidly changing market.
See More
Analysis of Pegasystems Dividend Predictions
- Dividend Yield Expectation: Pegasystems Inc's latest dividend is projected at 0.3%, closely tied to the company's profitability fluctuations, reflecting investor caution regarding future dividend stability.
- Historical Volatility Analysis: The annualized volatility for Pegasystems, calculated from the last 251 trading days, stands at 56%, indicating significant price fluctuations and necessitating careful risk-reward assessments by investors.
- Options Trading Dynamics: As of Thursday afternoon, the put volume among S&P 500 components reached 1.60 million contracts, while call volume hit 2.74 million, indicating a market preference for call options that could influence stock price movements.
- Options Market Trends: The current put:call ratio of 0.59 is below the long-term median of 0.65, suggesting increased investor confidence in future price increases, which may impact Pegasystems' market performance.
See More
Pegasystems Inc (PEGA) Stock Enters Oversold Territory with RSI at 27.8
- Oversold Signal: Pegasystems Inc's stock price fell to $47.27 on Wednesday, with an RSI of 27.8 indicating oversold conditions, suggesting potential buying opportunities for investors.
- Relative Strength Index Comparison: PEGA's RSI of 27.8, compared to the average RSI of 58.0 for dividend stocks, indicates that recent heavy selling may be exhausting, attracting dividend investors seeking higher yields.
- Dividend Yield Analysis: With a recent annualized dividend of $0.12 per share, PEGA's yield stands at 0.24% based on the current price of $51.04, presenting potential income opportunities for investors.
- Investor Sentiment Shift: While dividends are often unpredictable, analyzing historical dividend data can help investors assess the likelihood of PEGA's dividend continuity, influencing their investment decisions.
See More
PEGA Stock Fluctuation: 52-Week Low at $29.83, High at $68.10
- Stock Price Analysis: PEGA's 52-week low is $29.83, with a high of $68.10, and a last trade at $53.00, indicating significant price volatility over the past year, which may impact investor confidence and market expectations.
- Technical Indicator Focus: PEGA's stock price has fallen below its 200-day moving average, potentially signaling further downside risk in the short term, prompting investors to closely monitor market dynamics to adjust their strategies.
- Market Sentiment Assessment: Although the current stock price is in the middle of its 52-week range, investor sentiment regarding PEGA's future performance remains cautious, which could affect short-term capital inflows.
- Industry Comparison Perspective: PEGA's price fluctuations contrast with nine other high-dividend stocks that recently fell below their 200-day moving averages, reflecting varying market reactions to high-dividend stocks and potentially influencing overall investment portfolio risk management.
See More
U.S. Stocks Rally as Strong Earnings Lift Nasdaq 1.2%
- Semiconductor Surge: Taiwan Semiconductor's blockbuster earnings reignited enthusiasm, leading AMD and ASML shares to rise about 6% each, reflecting a robust recovery in the AI supply chain and boosting market confidence.
- Strong Financials: Goldman Sachs and Morgan Stanley saw their stocks rise by 4% and 5% respectively after reporting earnings, reassuring investors about the profitability of major financial institutions amid mixed sector results.
- Regional Bank Rebound: The SPDR S&P Regional Banking ETF's surge helped lift small-cap stocks, with the Russell 2000 index hitting record highs for the tenth consecutive session, pushing year-to-date gains above 7%, indicating optimism towards small businesses.
- Positive Economic Data: Initial jobless claims fell to 198,000, significantly below the forecast of 215,000, showcasing the resilience of the U.S. labor market and further bolstering investor confidence in economic recovery.
See More
Pegasystems Launches GenAI-Powered Compliance Solution to Transform Client Onboarding
- Compliance Process Innovation: Pegasystems' latest version of Pega Client Lifecycle Management (CLM) integrates GenAI-powered automation features that significantly enhance client onboarding and due diligence efficiency, enabling financial institutions to reduce compliance costs and improve accuracy.
- Cost Savings Potential: According to McKinsey, banks allocate up to 15% of full-time staff to KYC and anti-money laundering, and the new system's automation capabilities are expected to significantly reduce this percentage, freeing up human resources for higher-value tasks.
- Real-Time Compliance Monitoring: The new system provides real-time visibility into compliance status and case progress, combined with GenAI-powered summaries and monitoring capabilities, allowing financial institutions to better manage customer risk and enhance decision-making efficiency.
- Enhanced User Experience: With intelligent self-service workflows, customers can independently complete onboarding processes, increasing customer satisfaction while allowing staff to focus on more strategic tasks, thereby enhancing overall business efficiency.
See More
Pegasystems Declares $0.03 Quarterly Cash Dividend
- Dividend Maintenance: Pegasystems has declared a quarterly cash dividend of $0.03 per share, maintaining its current dividend program, which reflects the company's ongoing commitment to stable cash flow and shareholder returns.
- Payment Schedule: The Q1 2026 dividend will be paid on January 16, 2026, to shareholders of record as of January 2, 2026, ensuring timely returns for investors and bolstering their confidence in the company.
- Support for Enterprise Transformation: As The Enterprise Transformation Company™, Pegasystems leverages its platform to assist many of the world's leading businesses in addressing critical challenges, further solidifying its market position in enterprise AI decisioning and workflow automation.
- Continuous Innovation: Since 1983, Pegasystems has focused on building scalable and flexible architecture to meet customer demands and drive future transformations, showcasing the company's adaptability and foresight in a rapidly changing market.
See More
