Pegasystems Inc. (PEGA) Stock Analysis
Falling Knife setup
Technology · Software - Application
Sell if holding. Momentum 1.5/10 is below the 5.0 floor at $33.92 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Sector modifier (Technology): -0.8; Weak overall score: 4.6/10.
Pegasystems develops enterprise AI decisioning and workflow automation software (Pega Platform) for financial services, healthcare, government, insurance, and other large enterprises globally. Revenue is primarily subscription-based with $2.1B in backlog as of December 31, 2025;... Read more
Sell if holding. Momentum 1.5/10 is below the 5.0 floor at $33.92 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Sector modifier (Technology): -0.8; Weak overall score: 4.6/10. Chart setup: Death cross, below all MAs, RSI 33, MACD bearish. Score 4.6/10, high confidence.
Passes 7/9 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, earnings proximity 65d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and death cross (50MA < 200MA). Suitability: moderate.
Recent Developments — Pegasystems Inc.
Latest news
- PEGASYSTEMS ($PEGA) Releases Q1 2026 Earnings, Stock Rises - Quiver Quantitative — Quiver Quantitative positive
- Pegasystems: Q1 Earnings Snapshot - KTVB — KTVB neutral
- Pegasystems: Q1 Earnings Snapshot - WKYC — WKYC neutral
- Pegasystems (PEGA) Q2 2025 Earnings Transcript - The Motley Fool — The Motley Fool neutral
- Pegasystems (NASDAQ:PEGA) Shares Gap Down - What's Next? - MarketBeat — MarketBeat negative
Generated 2026-05-20T21:06:21Z.
Thesis
Key Metrics
Quality Signals
Material Events(8-K, last 90d)
- 2026-02-12Item 5.02LOWCompensation Committee approved the 2026 Section 16 Officer/ALT Member Corporate Incentive Compensation Plan on February 9, 2026, covering executive officers. Financial goals weighted 75%, strategic goals 25%. Routine annual compensation plan adoption.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer
Rating Breakdown
3 floor-breakers
Revenue shrinking — -9.6% YoY. Growth thesis broken unless recovery story develops.static
Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Momentum 1.5/10 is below the 5.0 floor at $33.92 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Sector modifier (Technology): -0.8; Weak overall score: 4.6/10. Chart setup: Death cross, below all MAs, RSI 33, MACD bearish. Prior stop was $31.35. Score 4.6/10, high confidence.
Take-profit target: $50.62 (+50.2% upside). Prior stop was $31.35. Stop-loss: $31.35.
Sector modifier (Technology): -0.8; Weak overall score: 4.6/10; Weak growth.
Pegasystems Inc. trades at a P/E of 18.2 (forward 11.1). TrendMatrix value score: 6.2/10. Verdict: Sell.
19 analysts cover PEGA with a consensus score of 4.2/5. Average price target: $58.
What does Pegasystems Inc. do?Pegasystems develops enterprise AI decisioning and workflow automation software (Pega Platform) for financial services,...
Pegasystems develops enterprise AI decisioning and workflow automation software (Pega Platform) for financial services, healthcare, government, insurance, and other large enterprises globally. Revenue is primarily subscription-based with $2.1B in backlog as of December 31, 2025; the company also faces ongoing trade-secret litigation with Appian Corp. where a $2B+ judgment was reversed and remanded for retrial.