Insider Move: Rifat Kerim Akgonul Exercises Options, Realizing $1.16M At Pegasystems

Disclosed in a recent SEC filing on July 28, Akgonul, Chief Product Officer at Pegasystems (NASDAQ:PEGA), made a noteworthy transaction involving the exercise of company stock options.

What Happened: A notable Form 4 filing on Monday with the U.S. Securities and Exchange Commission revealed that Akgonul, Chief Product Officer at Pegasystems, exercised stock options for 31,068 shares of PEGA, resulting in a transaction value of $1,156,040.

Pegasystems shares are currently trading down by 0.98%, with a current price of $59.36 as of Tuesday morning. This brings the total value of Akgonul's 31,068 shares to $1,156,040.

Get to Know Pegasystems Better

Founded in 1983, Pegasystems provides a suite of solutions for customer engagement and business process management. The company's key offering is the Pega Infinity platform, which combines business process management with customer relationship management applications. The company focuses on enterprise-size customers in the financial, insurance, and healthcare industries.

Pegasystems: Financial Performance Dissected

Revenue Growth: Pegasystems's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2025, the company achieved a revenue growth rate of approximately 9.5%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.

Analyzing Profitability Metrics:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 71.5%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): Pegasystems's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.18.

Debt Management: Pegasystems's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.13.

Valuation Metrics:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 49.34 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 6.7, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio of 30.12 trails industry averages, indicating a potential disparity in market valuation that could be advantageous for investors.

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

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Uncovering the Importance of Insider Activity

Insider transactions, although significant, should be considered within the larger context of market analysis and trends.

Exploring the legal landscape, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.

Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.

But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Cracking Transaction Codes

Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Pegasystems's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.