BMO Capital Markets Boosts Paylocity (NASDAQ:PCTY) Price Target to $230.00

Key Points

• BMO Capital Markets has increased its price target for Paylocity (NASDAQ:PCTY) from $226.00 to $230.00, indicating a potential upside of 26.58% from the current price and maintaining an "outperform" rating.
• Several analysts have adjusted their price targets for Paylocity, with most maintaining a positive outlook, as 13 out of 17 analysts rated the stock as a buy.
• Paylocity reported a quarterly earnings beat with a net profit margin of 14.65% and a revenue increase of 12.2% compared to the same quarter last year, generating $400.74 million in revenue.

Paylocity (NASDAQ:PCTY - Get Free Report) had its price target increased by equities researchers at BMO Capital Markets from $226.00 to $230.00 in a research note issued on Wednesday, Marketbeat Ratings reports. The brokerage currently has an "outperform" rating on the software maker's stock. BMO Capital Markets' target price would indicate a potential upside of 29.99% from the company's previous close.

PCTY has been the subject of a number of other research reports. Stephens initiated coverage on Paylocity in a research note on Monday, July 21st. They set an "equal weight" rating and a $200.00 price objective for the company. UBS Group lifted their target price on shares of Paylocity from $195.00 to $200.00 and gave the company a "neutral" rating in a report on Friday, May 2nd. Wall Street Zen upgraded shares of Paylocity from a "hold" rating to a "buy" rating in a research note on Monday, May 12th. Citigroup cut their target price on Paylocity from $225.00 to $218.00 and set a "buy" rating on the stock in a research note on Monday, July 21st. Finally, Scotiabank began coverage on Paylocity in a research report on Wednesday, April 16th. They set a "sector perform" rating and a $190.00 price objective for the company. Four analysts have rated the stock with a hold rating and thirteen have issued a buy rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $223.19.

Paylocity Price Performance

Shares of PCTY traded down $6.75 during mid-day trading on Wednesday, reaching $176.94. 661,959 shares of the stock traded hands, compared to its average volume of 533,513. The company has a market cap of $9.76 billion, a price-to-earnings ratio of 44.12, a price-to-earnings-growth ratio of 3.50 and a beta of 0.54. Paylocity has a 1 year low of $146.02 and a 1 year high of $223.80. The firm has a fifty day moving average price of $183.48 and a 200 day moving average price of $191.25. The company has a current ratio of 1.14, a quick ratio of 1.13 and a debt-to-equity ratio of 0.13.

Paylocity (NASDAQ:PCTY - Get Free Report) last announced its earnings results on Tuesday, August 5th. The software maker reported $1.56 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.38 by $0.18. Paylocity had a net margin of 14.24% and a return on equity of 22.08%. The business had revenue of $400.74 million during the quarter, compared to analyst estimates of $388.25 million. During the same period in the previous year, the business posted $1.48 earnings per share. Paylocity's revenue for the quarter was up 12.2% on a year-over-year basis. As a group, equities research analysts predict that Paylocity will post 4.36 earnings per share for the current year.

Insider Activity at Paylocity

In related news, SVP Andrew Cappotelli sold 1,717 shares of the firm's stock in a transaction on Monday, June 23rd. The shares were sold at an average price of $176.74, for a total transaction of $303,462.58. Following the completion of the transaction, the senior vice president directly owned 11,953 shares of the company's stock, valued at approximately $2,112,573.22. This trade represents a 12.56% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Company insiders own 21.91% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the stock. LPL Financial LLC boosted its stake in Paylocity by 22.5% during the fourth quarter. LPL Financial LLC now owns 19,107 shares of the software maker's stock valued at $3,780,000 after buying an additional 3,515 shares during the last quarter. O Shaughnessy Asset Management LLC raised its holdings in shares of Paylocity by 17.6% during the 4th quarter. O Shaughnessy Asset Management LLC now owns 1,440 shares of the software maker's stock worth $287,000 after acquiring an additional 215 shares in the last quarter. Franklin Resources Inc. boosted its position in shares of Paylocity by 11.4% during the 4th quarter. Franklin Resources Inc. now owns 1,710 shares of the software maker's stock valued at $341,000 after acquiring an additional 175 shares during the last quarter. Envestnet Asset Management Inc. grew its holdings in shares of Paylocity by 2.4% in the fourth quarter. Envestnet Asset Management Inc. now owns 130,947 shares of the software maker's stock valued at $26,120,000 after purchasing an additional 3,104 shares in the last quarter. Finally, Russell Investments Group Ltd. increased its position in Paylocity by 7.1% in the fourth quarter. Russell Investments Group Ltd. now owns 34,625 shares of the software maker's stock worth $6,907,000 after purchasing an additional 2,308 shares during the last quarter. Institutional investors own 94.76% of the company's stock.

About Paylocity

Paylocity Holding Corporation engages in the provision of cloud-based human capital management and payroll software solutions for workforce in the United States. The company offers payroll software solution for global payroll, expense management, tax services, on demand payment, and garnishment managed services; and time and labor management software for time and attendance, scheduling, and time collection.