Pegasystems Gives Green Light to Expand Share Buyback Program; Shares Jump 3.2%
Shares of Pegasystems (PEGA) rose 3.2% and closed at $127.92 on June 8 after the company approved an increase in its share buyback program.
Pegasystems develops software for customer relationship management, digital process automation, and business process management.
Pegasystems expanded its stock buyback program to $60 million from the remaining amount in the current program of $21.7 million. In addition, the termination date of the program has been extended to June 30, 2022, from June 30, 2021.
Under the program, the company will buy back shares in the open market or privately negotiated transactions. (See Pegasystems stock analysis on TipRanks)
On June 4, Needham analyst Jack Andrews assigned a Buy rating and a price target of $180 (40.7% upside potential).
Andrews commented, “We believe PEGA is uniquely levered to multiple digital transformation initiatives, and its ability to deliver fast, tangible returns should position the company for a period of strong secular growth.”
Consensus among analysts is a Strong Buy based on 4 unanimous Buys. The Pegasystems average analyst price target of $169.25 implies 32.3% upside potential from current levels. Shares have gained 31.2% over the past year.
Pegasystems scores an 8 of 10 on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.
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