In recent trading, Pegasystems Inc (Symbol: PEGA) saw its shares exceed the average analyst 12-month target price of $94.64, selling for $96.09 each. When a stock meets an analyst’s target, the next steps for that analyst can include downgrading the stock on valuation grounds or adjusting their target price upwards. The decision may also hinge on recent business developments that could support the increased stock price; if the future outlook is bright, a higher target might be warranted.
Analyst Perspectives on Pegasystems’ Stock Performance
Within the Zacks coverage universe, there are 11 varied analyst targets contributing to Pegasystems’ average price. This average represents a collective viewpoint, but individual analysts can have widely differing opinions—one aims for a price of $67.00, while another projects as high as $123.00, resulting in a standard deviation of $18.693.
Understanding the Average Target Price
The rationale for looking at the average price target is rooted in the “wisdom of crowds.” This method combines insights from various analysts, letting investors gauge a broader market sentiment rather than relying on a single expert. With PEGA surpassing the average target of $94.64/share, investors are prompted to reevaluate their positions. Should they see $94.64 as a stepping stone towards an even higher target, or has the valuation become overextended, signaling a good moment to cash in some gains? Below is a table presenting the current ratings from analysts covering Pegasystems Inc:
| Recent PEGA Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Month Ago | 3 Month Ago |
| Strong buy ratings: | 7 | 7 | 7 | 7 |
| Buy ratings: | 1 | 1 | 1 | 1 |
| Hold ratings: | 4 | 4 | 4 | 4 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong sell ratings: | 0 | 0 | 0 | 0 |
| Average rating: | 1.75 | 1.75 | 1.75 | 1.75 |
The average rating listed above is scored on a scale from 1 to 5, with 1 being Strong Buy and 5 being Strong Sell. This article includes data sourced from Zacks Investment Research via Quandl.com. For the latest Zacks research report on PEGA, access it for free.
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The views and opinions expressed herein are those of the author and do not necessarily represent those of Nasdaq, Inc.
