Pegasystems: Taking flight as software demand grows

Sometimes it’s the little things that seemingly stir investors into action.

Take Pegasystems Inc. (Nasdaq:PEGA), a maker of business process management (BPM) software, the enterprise-wide programs needed on this corporate planet to automate and streamline workflow while minimizing risks such as fraud. Pegasystems client roster is liberally sprinkled with Fortune 500 names, primarily in financial services, health care and insurance. Others are found in government, transaction outsourcing, communications and manufacturing.

A June 19 announcement from the Cambridge, Mass., company confirmed payment of a regular $0.03 dividend. Nothing new here; Pegasystems has been distributing that quarterly dividend the past few years.

Shares closed 6% higher that day, but the fireworks in Pegasystems share price have continued — right through Wednesday, when the stock climbed to a 52-week high of $14.07. Pegasystems had traded as low as $8.73 on Jan. 22. Shares closed Thursday at $13.75.

Whether that dividend commitment was behind the climb, few analysts are currently tracking Pegasystems, which has been around for a quarter century. On the same day of the announcement, Stanford Group’s Kevin Buttigieg initiated coverage with a “hold” rating.

“They are laser-focused on BPM,” Gregg Speicher, senior analyst and founder of Moss Creek Capital in McKinney, Texas, said in an interview. He began issuing reports to clients about Pegasystems last summer, and has the stock rated at a “buy” . . .

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