Dayforce (NYSE:DAY) Rating Lowered to "Hold" at BMO Capital Markets

Key Points

• BMO Capital Markets has downgraded Dayforce's rating from "strong-buy" to "hold" amid a broader trend of mixed analyst sentiments on the stock.
• Dayforce achieved quarterly earnings of $0.61 per share, exceeding expectations, with a notable revenue increase of 9.8% from the previous year.
• As of recent reports, the consensus rating for Dayforce is "Hold," with an average target price of $72.14, reflecting cautious optimism among analysts.

Dayforce (NYSE:DAY - Get Free Report) was downgraded by equities research analysts at BMO Capital Markets from an "outperform" rating to a "hold" rating in a report issued on Thursday, MarketBeat.com reports.

A number of other brokerages also recently commented on DAY. William Blair downgraded shares of Dayforce from an "outperform" rating to a "hold" rating in a research report on Wednesday, August 20th. TD Cowen lowered Dayforce from a "buy" rating to a "hold" rating in a report on Thursday, August 21st. UBS Group increased their price target on Dayforce from $68.00 to $72.00 and gave the company a "buy" rating in a research note on Thursday, June 5th. Jefferies Financial Group raised their price target on Dayforce from $60.00 to $70.00 and gave the company a "hold" rating in a report on Thursday, August 21st. Finally, Piper Sandler upgraded shares of Dayforce to a "strong-buy" rating in a report on Tuesday, August 19th. One equities research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and eleven have given a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of $71.43.

Dayforce Stock Up 0.1%

Shares of Dayforce stock traded up $0.09 on Thursday, hitting $69.58. The company had a trading volume of 296,138 shares, compared to its average volume of 2,086,083. The stock has a 50-day moving average of $57.50 and a 200-day moving average of $58.07. 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 has a twelve month low of $48.01 and a twelve month high of $82.69. The firm has a market capitalization of $11.11 billion, a P/E ratio of 231.91, a P/E/G ratio of 2.60 and a beta of 1.11.

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

Insider Activity at Dayforce

In related news, COO Stephen H. Holdridge sold 2,000 shares of the business's stock in a transaction on Tuesday, July 15th. The shares were sold at an average price of $55.01, for a total value of $110,020.00. Following the sale, the chief operating officer owned 190,811 shares of the company's stock, valued at $10,496,513.11. The trade was a 1.04% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, EVP William Everett Mcdonald sold 2,059 shares of the firm's stock in a transaction on Tuesday, July 15th. The stock was sold at an average price of $55.01, for a total value of $113,265.59. Following the transaction, the executive vice president directly owned 103,684 shares of the company's stock, valued at approximately $5,703,656.84. This represents a 1.95% 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 valued at $539,860 in the last quarter. Insiders own 4.50% of the company's stock.

Institutional Investors Weigh In On Dayforce

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Xponance Inc. lifted its stake in shares of Dayforce by 0.8% in the first quarter. Xponance Inc. now owns 22,673 shares of the company's stock worth $1,323,000 after acquiring an additional 179 shares during the period. Covestor Ltd lifted its position in shares of Dayforce by 15.6% in the 1st quarter. Covestor Ltd now owns 1,430 shares of the company's stock worth $83,000 after purchasing an additional 193 shares during the period. DekaBank Deutsche Girozentrale boosted its stake in shares of Dayforce by 1.0% in the 2nd quarter. DekaBank Deutsche Girozentrale now owns 19,984 shares of the company's stock valued at $1,103,000 after purchasing an additional 196 shares during the last quarter. HighTower Advisors LLC increased its position in shares of Dayforce by 3.5% during the first quarter. HighTower Advisors LLC now owns 5,931 shares of the company's stock worth $346,000 after buying an additional 203 shares during the period. Finally, Stifel Financial Corp increased its position in shares of Dayforce by 4.1% during the fourth quarter. Stifel Financial Corp now owns 5,206 shares of the company's stock worth $378,000 after buying an additional 205 shares during the period.

About Dayforce

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.