Kenneth Stillwell, the Chief Operating Officer and Chief Financial Officer of Pegasystems Inc . (NASDAQ:PEGA), has recently sold 1,000 shares of company stock, according to a new SEC filing. The transaction, which took place on June 3, 2024, was executed at an average price of $57.90 per share, resulting in a total value of $57,900.
The SEC filing also revealed that Stillwell conducted several other transactions involving Pegasystems stock on the same day. Notably, shares were tendered to the issuer to satisfy tax withholding obligations totaling $55,448, at a price of $57.46 per share. These transactions are exempted pursuant to Rule 16b-3(e).
Additionally, Stillwell acquired shares through the vesting of restricted stock units (RSUs). The vesting of these shares is part of a structured compensation plan, with the most recent vesting representing a 5% increment of the total granted RSUs. The vesting occurred on June 1 and June 2, with the shares being released the following business day. The original grants of these RSUs were set to vest in equal quarterly installments over four years, following an initial 20% vesting at the start of the respective grant periods.
The SEC filing includes footnotes that provide further context to the transactions. For instance, footnote F5 indicates that the sale of the 1,000 shares was conducted pursuant to a pre-arranged trading plan adopted by Stillwell under Rule 10b5-1, which allows insiders to sell shares at predetermined times to avoid accusations of trading on nonpublic information.
It is important to note that the reported holdings do not include shares of common stock subject to unvested restricted stock units and/or options awards, as clarified by footnote F7.
Investors and market observers often scrutinize Form 4 filings to gain insight into executives' perspectives on their company's stock. Transactions by company insiders can provide valuable signals about the company's financial health and future prospects.
InvestingPro Insights
Amidst the recent insider transactions by Kenneth Stillwell, COO and CFO of Pegasystems Inc. (NASDAQ:PEGA), investors may find it valuable to consider the company's financial health and market performance. Pegasystems is currently trading at a price close to its previous close of $57.85, with a market capitalization of approximately $4.81 billion. An InvestingPro Tip suggests that Pegasystems is trading at a high price-to-earnings (P/E) ratio of 62.27, which is adjusted to 46.5 based on last twelve months as of Q1 2024, indicating a premium valuation relative to near-term earnings growth.
Another key metric is the company's revenue growth, which stood at 13.44% over the last twelve months as of Q1 2024. This may be a signal of the company's ability to expand its business operations. Additionally, analysts have revised their earnings upwards for the upcoming period, reflecting a positive outlook on the company's financial performance. Pegasystems also boasts a robust gross profit margin of 73.89%, underscoring its profitability in generating revenue.
For investors looking to delve deeper into Pegasystems' financials and future prospects, there are additional InvestingPro Tips available, including insights on the company's dividend consistency, levels of debt, and valuation multiples. For those interested in making informed investment decisions, using the coupon code PRONEWS24 will provide an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro, where you can access a total of 12 tips for Pegasystems at https://www.investing.com/pro/PEGA.
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