On September 11, 2023, Rifat Akgonul, Chief Product Officer of Pegasystems Inc (PEGA, Financial), sold 1,890 shares of the company. This move comes as part of a series of transactions made by the insider over the past year, during which Akgonul has sold a total of 5,070 shares.
Pegasystems Inc is a leading software company that provides strategic applications for sales, marketing, service, and operations. Pega's applications streamline critical business operations, connect enterprises to their customers seamlessly in real-time across channels, and adapt to meet rapidly changing requirements. Pega's Global 3000 customers include many of the world's most sophisticated and successful enterprises.
The insider's recent sell-off is part of a broader trend within the company. Over the past year, there have been 15 insider sells and no insider buys. This trend is illustrated in the following chart:
The insider's transactions often have a significant impact on the stock price. In this case, the shares of Pegasystems Inc were trading for $46.65 apiece on the day of the insider's recent sell. This gives the stock a market cap of $3.74 billion.
Despite the insider's sell-off, the stock appears to be significantly undervalued based on its GuruFocus Value. With a price of $46.65 and a GuruFocus Value of $97.64, Pegasystems Inc has a price-to-GF-Value ratio of 0.48. This suggests that the stock is significantly undervalued.
The GF Value is an intrinsic value estimate developed by GuruFocus. It is calculated based on historical multiples that the stock has traded at, a GuruFocus adjustment factor based on the company’s past returns and growth, and future estimates of business performance from Morningstar analysts. The GF Value for Pegasystems Inc is shown in the following chart:
In conclusion, while the insider's recent sell-off may raise some eyebrows, the stock's current valuation suggests that it may still be a good buy for investors. However, as always, investors should conduct their own due diligence before making any investment decisions.
