Dayforce's (DAY) "Market Perform" Rating Reaffirmed at BMO Capital Markets

Key Points

• BMO Capital Markets has reiterated its "market perform" rating for Dayforce (NYSE:DAY) and raised its price target from $67.00 to $70.00, indicating a potential upside of 1.39% from the stock's previous close.
• Recent analyses show a mixed outlook, with TD Cowen downgrading Dayforce to a "hold" rating while Jefferies Financial Group and Wells Fargo & Company have set their target price at $70.00.
• Dayforce reported a quarterly earnings per share (EPS) of $0.61, exceeding estimates of $0.52, and achieving a revenue of $464.70 million, up 9.8% compared to the previous year.

Dayforce (NYSE:DAY - Get Free Report)'s stock had its "market perform" rating reiterated by research analysts at BMO Capital Markets in a research report issued on Friday, MarketBeat Ratings reports. They presently have a $70.00 price target on the stock, up from their previous price target of $67.00. BMO Capital Markets' price target points to a potential upside of 0.54% from the stock's previous close.

A number of other equities analysts have also weighed in on the stock. Barclays upped their target price on shares of Dayforce from $61.00 to $70.00 and gave the stock an "equal weight" rating in a research report on Friday, August 22nd. Needham & Company LLC downgraded Dayforce from a "buy" rating to a "hold" rating and set a $95.00 price target for the company. in a report on Friday, August 22nd. Wells Fargo & Company raised Dayforce from a "strong sell" rating to an "equal weight" rating and raised their target price for the company from $50.00 to $70.00 in a report on Friday, August 22nd. TD Cowen cut Dayforce from a "buy" rating to a "hold" rating in a report on Thursday, August 21st. Finally, KeyCorp lowered Dayforce from an "overweight" rating to a "sector weight" rating in a research report on Friday, August 22nd. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and eleven have given a Hold rating to the company. Based on data from MarketBeat, Dayforce has an average rating of "Hold" and an average price target of $71.43.

Dayforce Stock Up 0.1%

NYSE DAY traded up $0.06 during trading hours on Friday, reaching $69.63. 525,766 shares of the company's stock traded hands, compared to its average volume of 2,085,134. Dayforce has a 52-week low of $48.01 and a 52-week high of $82.69. The firm has a market cap of $11.12 billion, a PE ratio of 232.14, a PEG ratio of 2.61 and a beta of 1.11. The firm has a 50-day simple moving average of $57.75 and a 200 day simple moving average of $58.15. The company has a debt-to-equity ratio of 0.23, a current ratio of 1.04 and a quick ratio of 1.04.

Dayforce (NYSE:DAY - Get Free Report) last issued its quarterly earnings results on Wednesday, August 6th. The company reported $0.61 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.52 by $0.09. The company had revenue of $464.70 million during the quarter, compared to analysts' expectations of $457.83 million. Dayforce had a net margin of 2.65% and a return on equity of 7.37%. Dayforce's revenue was up 9.8% on a year-over-year basis. During the same period last year, the company posted $0.48 EPS. Sell-side analysts anticipate that Dayforce will post 1.48 EPS for the current fiscal year.

Insider Activity

In other news, EVP Samer Alkharrat sold 4,659 shares of the company's stock in a transaction dated Friday, July 25th. The stock was sold at an average price of $59.69, for a total transaction of $278,095.71. Following the completion of the transaction, the executive vice president directly owned 127,632 shares of the company's stock, valued at $7,618,354.08. This represents a 3.52% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, COO Stephen H. Holdridge sold 2,000 shares of the company's stock in a transaction dated Tuesday, July 15th. The stock was sold at an average price of $55.01, for a total value of $110,020.00. Following the transaction, the chief operating officer directly owned 190,811 shares of the company's stock, valued at $10,496,513.11. This represents a 1.04% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 9,382 shares of company stock worth $539,860 in the last three months. 4.50% of the stock is owned by insiders.

Institutional Trading of Dayforce

Hedge funds have recently added to or reduced their stakes in the company. Squarepoint Ops LLC grew its position in Dayforce by 1,126.8% during the 2nd quarter. Squarepoint Ops LLC now owns 72,653 shares of the company's stock worth $4,024,000 after acquiring an additional 66,731 shares during the last quarter. State of Wyoming acquired a new position in shares of Dayforce during the second quarter valued at about $54,000. Public Sector Pension Investment Board grew its holdings in Dayforce by 44.1% during the second quarter. Public Sector Pension Investment Board now owns 32,928 shares of the company's stock worth $1,824,000 after buying an additional 10,081 shares in the last quarter. Tower Research Capital LLC TRC grew its holdings in Dayforce by 208.7% during the second quarter. Tower Research Capital LLC TRC now owns 7,187 shares of the company's stock worth $398,000 after buying an additional 4,859 shares in the last quarter. Finally, MUFG Securities EMEA plc purchased a new stake in shares of Dayforce during the second quarter valued at approximately $26,000.

Dayforce Company Profile

Dayforce Inc, together with its subsidiaries, operates as a human capital management (HCM) software company in the United States, Canada, and internationally. It offers Dayforce, a cloud HCM platform that provides human resources, payroll and tax, workforce management, wallet, benefits, and talent intelligence functionalities; and Powerpay, a cloud HR and payroll solution for the small business market.