Paylocity Holding Corporation (NASDAQ:PCTY) Given Average Rating of "Moderate Buy" by Brokerages

Key Points

• Analysts remain broadly positive: Paylocity has a consensus “Moderate Buy” rating from 17 analysts, including 12 buys and five holds, with an average 12-month price target of $160.53.
• Quarterly results exceeded expectations: The company reported EPS of $1.84 versus the $1.62 consensus estimate and revenue of $444.73 million, up 11% year over year and above forecasts.
• Institutional ownership is substantial, while insiders sold shares: Hedge funds and other institutions own 94.76% of Paylocity, while insiders sold $8.31 million of stock over the past three months under pre-arranged trading plans.

Shares of Paylocity Holding Corporation (NASDAQ:PCTY - Get Free Report) have received a consensus recommendation of "Moderate Buy" from the seventeen analysts that are currently covering the company, MarketBeat.com reports. Five research analysts have rated the stock with a hold recommendation and twelve have given a buy recommendation to the company. The average twelve-month price objective among brokers that have issued a report on the stock in the last year is $160.5294.

PCTY has been the topic of several recent analyst reports. Citigroup reissued a "buy" rating on shares of Paylocity in a research note on Thursday, August 6th. Raymond James Financial set a $140.00 price target on Paylocity in a report on Friday, May 8th. UBS Group increased their price target on Paylocity from $122.00 to $128.00 and gave the stock a "neutral" rating in a research note on Wednesday, July 22nd. Cantor Fitzgerald raised their price objective on Paylocity from $140.00 to $165.00 and gave the stock an "overweight" rating in a report on Wednesday, August 5th. Finally, Wall Street Zen cut Paylocity from a "buy" rating to a "hold" rating in a report on Saturday, July 4th.

Paylocity Stock Up 1.5%

PCTY opened at $160.22 on Tuesday. The firm has a market cap of $8.50 billion, a P/E ratio of 32.37 and a beta of 0.48. The business's fifty day simple moving average is $132.54 and its 200 day simple moving average is $116.57. Paylocity has a 52 week low of $92.99 and a 52 week high of $180.86. The company has a quick ratio of 1.09, a current ratio of 1.09 and a debt-to-equity ratio of 0.07.

Paylocity (NASDAQ:PCTY - Get Free Report) last released its earnings results on Tuesday, August 4th. The software maker reported $1.84 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.62 by $0.22. Paylocity had a net margin of 15.23% and a return on equity of 27.02%. The company had revenue of $444.73 million for the quarter, compared to analyst estimates of $431.46 million. During the same period in the prior year, the firm earned $1.56 EPS. The firm's quarterly revenue was up 11.0% on a year-over-year basis. As a group, equities research analysts anticipate that Paylocity will post 6.92 EPS for the current fiscal year.

Insider Activity

In other Paylocity news, CFO Ryan Glenn sold 3,345 shares of the firm's stock in a transaction dated Wednesday, August 19th. The stock was sold at an average price of $149.75, for a total value of $500,913.75. Following the sale, the chief financial officer directly owned 122,563 shares of the company's stock, valued at approximately $18,353,809.25. This trade represents a 2.66% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Steven I. Sarowitz sold 19,459 shares of Paylocity stock in a transaction dated Thursday, August 27th. The shares were sold at an average price of $157.78, for a total value of $3,070,241.02. Following the completion of the sale, the director owned 4,453,495 shares of the company's stock, valued at $702,672,441.10. This trade represents a 0.44% 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 sold a total of 54,145 shares of company stock valued at $8,312,067 in the last three months. Company insiders own 19.40% of the company's stock.

Institutional Investors Weigh In On Paylocity

Institutional investors have recently bought and sold shares of the stock. California State Teachers Retirement System grew its stake in shares of Paylocity by 18.9% during the 1st quarter. California State Teachers Retirement System now owns 49,614 shares of the software maker's stock valued at $5,360,000 after buying an additional 7,891 shares during the period. Deutsche Bank AG purchased a new position in shares of Paylocity in the 2nd quarter worth $54,906,000. UBS Group AG raised its position in shares of Paylocity by 38.3% in the 4th quarter. UBS Group AG now owns 415,879 shares of the software maker's stock worth $63,422,000 after buying an additional 115,111 shares during the period. BlackRock Inc. acquired a new position in Paylocity in the second quarter valued at $430,315,000. Finally, Ieq Capital LLC acquired a new position in Paylocity in the second quarter valued at $20,119,000. 94.76% of the stock is currently owned by hedge funds and other institutional investors.

Paylocity Company Profile

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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