RBC Capital Raises Pegasystems (PEGA) Price Target to $40

RBC Capital kept its Outperform rating on Pegasystems Inc. PEGA on October 22, 2026, while raising its price target from $35.00 to $40.00.

PEGA Pegasystems Inc.

$37.08 ▼ -33.51% year to date

1M 3M YTD

Daily close · Oct 22, 2026

RBC Capital's Call on Pegasystems

In its research note on October 22, 2026, RBC Capital reiterated its Outperform rating on the enterprise software firm and bumped up its price target to $40.00 from $35.00.

Other Institutional Activity in Pegasystems

AQR Capital Management, LLC grew its holdings by 379,971 shares, ending with 4,919,642 shares worth about $182.5 million. Massachusetts Financial Services Co. lifted its position by 654,412 shares to finish with 3,031,497 shares valued at roughly $112.5 million. First Trust Advisors LP added 909,775 shares for a total stake of 2,958,357 shares worth about $109.8 million. Arrowstreet Capital, Limited Partnership increased its holding by 1,399,784 shares, ending with 2,018,528 shares valued at approximately $74.9 million.

Pegasystems Inc. Stock Holds Steady

The shares recently traded around $35.18 on October 22, 2026, sitting down about 5.2% from an event close of $37.10. The stock trades roughly 0.8% above its 50-day moving average of $34.90, while remaining 7.1% below its 200-day moving average of $37.89.

Recent Earnings

Pegasystems posted trailing twelve month revenue of $1.75 billion and earnings of $1.62 per share. The company delivered a net margin of 16.9% alongside a return on equity of 51.4% and year-over-year revenue growth of 3.1%. The firm's next earnings report is scheduled for February 9, 2027.

Dividend

Pegasystems distributes an annual dividend rate of $0.12 per share, which translates to a dividend yield of roughly 0.34%. The payout ratio sits at 7.4%, meaning the firm uses a small slice of its earnings to fund the shareholder distribution.

Insider Buying and Selling at Pegasystems Inc.

Chief Operating Officer Kenneth Stillwell Jr sold 39,627 shares on September 11, 2026, at an average price of $35.77 for a total of $1,417,438. Director Dianne Ledingham sold 1,000 shares on September 15, 2026, at $38.00 per share, totaling $38,000, and later sold another 1,000 shares on October 1, 2026, at $34.15 for $34,150. Officer Efstathios A Kouninis sold 982 shares on September 16, 2026, at $37.35 per share for a total value of $36,678.

Analysts Set New Price Targets

Wall Street firms updated their views on the stock through October 2026. Citigroup maintained a Buy rating on October 13, 2026, and lowered its target from $55.00 to $52.00. Rosenblatt kept a Buy rating on October 15, 2026, with a target of $47.00. On October 22, 2026, Barclays maintained an Overweight rating and trimmed its target from $43.00 to $42.00, while Rosenblatt maintained a Buy rating and lowered its target from $47.00 to $43.00. Overall, the stock holds a consensus buy rating with a mean target price of $41.00 across 7 analyst opinions.

About Pegasystems

Pegasystems Inc. builds and licenses enterprise software used by large organizations to handle customer relationship management, digital process automation, and artificial intelligence-driven decisioning. The company serves clients across the Americas, Europe, and the Asia-Pacific region from its headquarters in Waltham, Massachusetts.

Bottom Line

Investors will look toward Pegasystems' next earnings release on February 9, 2027, for further updates on software license growth and profitability margins. Market watchers will also track subsequent analyst rating revisions and institutional ownership shifts in upcoming regulatory filings.