Paylocity (NASDAQ:PCTY) Stock Price Target Raised at Cantor Fitzgerald

Key Points

• Cantor Fitzgerald raised Paylocity’s price target from $165 to $200 while maintaining an “overweight” rating, implying 18.76% upside from the cited share price.
• Analyst sentiment remains favorable, with a consensus “Moderate Buy” rating and an average price target of $174.88; Citigroup and Guggenheim also recently raised their targets.
• Paylocity’s latest quarter exceeded expectations, with EPS of $1.84 versus $1.62 expected and revenue up 11% year over year, although valuation near 30 times earnings and continued insider selling present risks.

Paylocity (NASDAQ:PCTY - Get Free Report) had its price objective hoisted by Cantor Fitzgerald from $165.00 to $200.00 in a note issued to investors on Friday, Benzinga reports. The firm presently has an "overweight" rating on the software maker's stock. Cantor Fitzgerald's target price suggests a potential upside of 18.76% from the company's current price.

Several other research analysts have also commented on the company. Citigroup lifted their price target on Paylocity from $168.00 to $208.00 and gave the stock a "buy" rating in a research report on Tuesday. Wall Street Zen lowered shares of Paylocity from a "buy" rating to a "hold" rating in a research report on Saturday, October 24th. Jefferies Financial Group restated a "buy" rating and set a $165.00 target price on shares of Paylocity in a research report on Wednesday, August 5th. TD Cowen lifted their target price on shares of Paylocity from $168.00 to $177.00 and gave the company a "buy" rating in a report on Thursday, August 20th. Finally, Guggenheim upped their price target on shares of Paylocity from $180.00 to $200.00 and gave the company a "buy" rating in a research report on Friday, October 23rd. Twelve investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $174.88.

Paylocity Stock Performance

NASDAQ PCTY opened at $168.40 on Friday. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.09 and a quick ratio of 1.09. Paylocity has a 1 year low of $92.99 and a 1 year high of $178.53. The company has a market capitalization of $8.79 billion, a PE ratio of 29.51, a P/E/G ratio of 2.00 and a beta of 0.50. The company has a fifty day moving average of $153.92 and a two-hundred day moving average of $126.56.

Paylocity (NASDAQ:PCTY - Get Free Report) last posted its earnings results on Tuesday, August 4th. The software maker reported $1.84 EPS for the quarter, topping analysts' consensus estimates of $1.62 by $0.22. Paylocity had a return on equity of 27.02% and a net margin of 15.23%. The business had revenue of $444.73 million for the quarter, compared to analysts' expectations of $431.46 million. During the same quarter in the previous year, the firm earned $1.56 earnings per share. The business's revenue was up 11.0% compared to the same quarter last year. As a group, analysts expect that Paylocity will post 6.92 earnings per share for the current year.

Insider Buying and Selling

In other news, Chairman Steven Beauchamp sold 15,000 shares of the company's stock in a transaction that occurred on Thursday, October 15th. The stock was sold at an average price of $165.22, for a total transaction of $2,478,300.00. Following the completion of the sale, the chairman owned 1,243,389 shares in the company, valued at $205,432,730.58. This represents a 1.19% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Steven I. Sarowitz sold 8,900 shares of the company's stock in a transaction that occurred on Tuesday, October 27th. The stock was sold at an average price of $171.31, for a total value of $1,524,659.00. Following the sale, the director owned 4,354,869 shares of the company's stock, valued at $746,032,608.39. This trade represents a 0.20% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 162,840 shares of company stock valued at $26,817,161 over the last ninety days. 19.40% of the stock is owned by insiders.

Hedge Funds Weigh In On Paylocity

A number of large investors have recently bought and sold shares of PCTY. Mirae Asset Global Investments Co. Ltd. purchased a new stake in Paylocity during the third quarter worth $547,000. Vise Technologies Inc. increased its position in shares of Paylocity by 66.1% in the third quarter. Vise Technologies Inc. now owns 10,160 shares of the software maker's stock valued at $1,449,000 after buying an additional 4,045 shares in the last quarter. MGO One Seven LLC purchased a new position in shares of Paylocity in the third quarter valued at $259,000. Choreo LLC raised its stake in shares of Paylocity by 31.6% during the 3rd quarter. Choreo LLC now owns 3,849 shares of the software maker's stock worth $549,000 after buying an additional 924 shares during the last quarter. Finally, Childress Capital Advisors LLC acquired a new position in shares of Paylocity during the 3rd quarter worth $222,000. Hedge funds and other institutional investors own 94.76% of the company's stock.

Key Headlines Impacting Paylocity

Here are the key news stories impacting Paylocity this week:

• Positive Sentiment: KeyCorp raised its price target for Paylocity from $178 to $190 and maintained an “overweight” rating, implying meaningful upside from the referenced share price. KeyCorp analyst rating
• Positive Sentiment: The bullish analyst view adds to other supportive targets, including Guggenheim’s $200 objective and BTIG Research’s $200 target with a “buy” rating. The analyst consensus remains “Moderate Buy.”
• Positive Sentiment: Investors are looking ahead to Paylocity’s earnings announcement. Zacks said the company has factors that could support another earnings beat, following its latest quarter in which EPS of $1.84 exceeded the $1.62 consensus and revenue rose 11% year over year. Zacks earnings expectations article
• Neutral Sentiment: Paylocity shares have risen substantially from their 12-month low and are trading near the 12-month high. With a market capitalization of about $8.8 billion and a high level of institutional ownership, further gains may depend on earnings results and forward guidance.
• Negative Sentiment: Director Steven Sarowitz sold 8,900 shares for approximately $1.5 million on October 27 and another 100 shares for $17,023 on October 28. Both transactions were made under pre-arranged Rule 10b5-1 plans, and he still owns more than 4.35 million shares, so the ownership reduction is minimal. Nevertheless, repeated insider selling could weigh modestly on sentiment. SEC insider transaction filing
• Negative Sentiment: Valuation is a risk after the stock’s strong advance, with Paylocity trading at roughly 30 times earnings based on the provided market data. Any earnings miss, weaker guidance, or signs that monetization is not accelerating could pressure the shares.

Paylocity Company Profile

Paylocity Holding Corporation NASDAQ: PCTY provides cloud-based human capital management (HCM) and payroll software for organizations. Its platform is designed to help employers manage payroll, human resources, employee benefits, talent acquisition, onboarding, performance, learning, and workforce administration through an integrated system.

The company also offers tools for time and labor management, scheduling, employee communications, engagement, surveys, expense management, and other workplace activities.

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