BMO Capital Markets Boosts Paylocity (NASDAQ:PCTY) Price Target to $143.00

Key Points

• BMO Capital Markets raised its price target on Paylocity from $135 to $143 and maintained an "outperform" rating, implying roughly a 32.6% upside from the prior close.
• Paylocity beat quarterly expectations with $1.85 EPS versus $1.57 expected and $416.13M in revenue (up 10.4% year-over-year), showing solid margins and return on equity.
• Analyst sentiment is broadly positive—14 Buys, 4 Holds and 1 Sell—with an average price target of $170.11 and a consensus rating of "Moderate Buy."

Paylocity (NASDAQ:PCTY - Get Free Report) had its price target hoisted by equities research analysts at BMO Capital Markets from $135.00 to $143.00 in a report issued on Friday. The firm presently has an "outperform" rating on the software maker's stock. BMO Capital Markets' target price indicates a potential upside of 32.59% from the company's previous close.

A number of other analysts have also commented on PCTY. TD Cowen reissued a "buy" rating on shares of Paylocity in a research note on Friday, February 6th. UBS Group decreased their price target on shares of Paylocity from $150.00 to $145.00 and set a "neutral" rating on the stock in a report on Friday, February 6th. Stifel Nicolaus decreased their price objective on shares of Paylocity from $188.00 to $165.00 and set a "buy" rating on the stock in a research report on Friday, February 6th. Jefferies Financial Group cut their price objective on shares of Paylocity from $180.00 to $150.00 and set a "buy" rating for the company in a research report on Friday, February 6th. Finally, Citigroup reaffirmed an "outperform" rating on shares of Paylocity in a research note on Friday, February 6th. Fourteen research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, Paylocity has an average rating of "Moderate Buy" and an average price target of $170.11.

Paylocity Stock Performance

Shares of NASDAQ PCTY opened at $107.85 on Friday. The business's 50-day moving average price is $107.07 and its two-hundred day moving average price is $128.85. Paylocity has a one year low of $92.99 and a one year high of $201.97. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.04 and a quick ratio of 1.04. The company has a market capitalization of $5.81 billion, a P/E ratio of 26.66, a price-to-earnings-growth ratio of 2.97 and a beta of 0.49.

Paylocity (NASDAQ:PCTY - Get Free Report) last issued its quarterly earnings data on Thursday, February 5th. The software maker reported $1.85 EPS for the quarter, topping analysts' consensus estimates of $1.57 by $0.28. The firm had revenue of $416.13 million for the quarter, compared to analyst estimates of $408.37 million. Paylocity had a net margin of 14.19% and a return on equity of 23.44%. The company's revenue was up 10.4% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.52 EPS. Analysts anticipate that Paylocity will post 5.31 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Paylocity

Several hedge funds and other institutional investors have recently added to or reduced their stakes in PCTY. Flagship Harbor Advisors LLC bought a new stake in Paylocity during the 4th quarter valued at approximately $27,000. MassMutual Private Wealth & Trust FSB raised its stake in shares of Paylocity by 363.4% in the 4th quarter. MassMutual Private Wealth & Trust FSB now owns 190 shares of the software maker's stock valued at $29,000 after buying an additional 149 shares in the last quarter. Los Angeles Capital Management LLC acquired a new stake in shares of Paylocity during the 4th quarter valued at about $30,000. Advisory Services Network LLC bought a new stake in Paylocity in the third quarter valued at $38,000. Finally, Pilgrim Partners Asia Pte Ltd bought a new stake in shares of Paylocity in the 3rd quarter worth about $41,000. Institutional investors own 94.76% of the company's stock.

About Paylocity

Paylocity NASDAQ: PCTY is a leading provider of cloud-based payroll and human capital management (HCM) software designed to streamline workforce administration for mid-sized organizations. The company's integrated platform automates core functions such as payroll processing, benefits administration, time and labor tracking, and compliance management, enabling employers to manage employee data more efficiently and reduce administrative burdens.

In addition to payroll and HR capabilities, Paylocity offers talent management solutions including recruiting, onboarding, performance tracking, and learning management.

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