Dayforce (NYSE:DAY) Rating Lowered to "Neutral" at Citigroup

Key Points

• Citigroup has reiterated a "neutral" rating for Dayforce (DAY) with a target price of $70.00, suggesting a potential upside of 1.36% from its previous close.
• Analysts have varied ratings for Dayforce, with one Strong Buy, three Buy, and twelve Hold ratings, leading to an average rating of "Hold" and a consensus price target of $71.43.
• Dayforce reported a quarterly revenue increase of 9.8% year-over-year and an EPS of $0.61, exceeding analysts' expectations by $0.09.

Citigroup cut shares of Dayforce (NYSE:DAY - Free Report) from a buy rating to a neutral rating in a research report released on Wednesday morning, MarketBeat Ratings reports. They currently have $70.00 target price on the stock.

Several other analysts also recently issued reports on the stock. Barclays raised their price objective on shares of Dayforce from $61.00 to $70.00 and gave the stock an "equal weight" rating in a research note on Friday, August 22nd. Piper Sandler upgraded shares of Dayforce to a "strong-buy" rating in a research note on Tuesday, August 19th. TD Cowen downgraded shares of Dayforce from a "buy" rating to a "hold" rating in a research report on Thursday, August 21st. KeyCorp downgraded shares of Dayforce from an "overweight" rating to a "sector weight" rating in a research report on Friday, August 22nd. Finally, Mizuho set a $70.00 price objective on shares of Dayforce in a research report on Friday, August 22nd. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and thirteen have assigned a Hold rating to the company's stock. According to MarketBeat, Dayforce presently has an average rating of "Hold" and a consensus price target of $70.36.

Dayforce Stock Down 0.2%

NYSE DAY traded down $0.14 during mid-day trading on Wednesday, reaching $68.81. The stock had a trading volume of 2,993,779 shares, compared to its average volume of 1,982,005. Dayforce has a 1 year low of $48.01 and a 1 year high of $82.69. The stock has a market cap of $10.99 billion, a PE ratio of 229.37, a price-to-earnings-growth ratio of 2.54 and a beta of 1.14. The company has a fifty day moving average price of $62.31 and a 200 day moving average price of $58.82. 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 posted its quarterly earnings data on Wednesday, August 6th. The company reported $0.61 EPS for the quarter, topping the consensus estimate of $0.52 by $0.09. The firm had revenue of $464.70 million during the quarter, compared to analyst estimates of $457.83 million. Dayforce had a return on equity of 7.37% and a net margin of 2.65%.Dayforce's revenue was up 9.8% on a year-over-year basis. During the same period in the prior year, the business posted $0.48 EPS. On average, research analysts expect 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 stock in a transaction dated Monday, September 15th. The shares were sold at an average price of $68.95, for a total value of $137,900.00. Following the completion of the transaction, the chief operating officer owned 186,811 shares in the company, valued at $12,880,618.45. This represents a 1.06% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, EVP William Everett Mcdonald sold 2,059 shares of the firm's stock in a transaction dated Tuesday, July 15th. The shares were sold at an average price of $55.01, for a total transaction of $113,265.59. Following the transaction, the executive vice president owned 103,684 shares of the company's stock, valued at approximately $5,703,656.84. This trade represents a 1.95% decrease in their position. The disclosure for this sale can be found here. Insiders sold 11,382 shares of company stock worth $677,760 in the last 90 days. Corporate insiders own 4.50% of the company's stock.

Institutional Trading of Dayforce

Institutional investors have recently added to or reduced their stakes in the business. EdgePoint Investment Group Inc. grew its stake in shares of Dayforce by 55.0% in the first quarter. EdgePoint Investment Group Inc. now owns 13,860,521 shares of the company's stock worth $808,484,000 after acquiring an additional 4,918,825 shares during the last quarter. Price T Rowe Associates Inc. MD boosted its stake in shares of Dayforce by 9.1% in the 1st quarter. Price T Rowe Associates Inc. MD now owns 16,620,415 shares of the company's stock valued at $969,470,000 after purchasing an additional 1,387,943 shares in the last quarter. Invesco Ltd. lifted its position in Dayforce by 36.0% during the 1st quarter. Invesco Ltd. now owns 3,583,632 shares of the company's stock worth $209,033,000 after buying an additional 948,436 shares in the last quarter. Nuveen LLC acquired a new position in Dayforce during the 1st quarter worth about $28,416,000. Finally, Vanguard Group Inc. raised its holdings in Dayforce by 1.7% during the 2nd quarter. Vanguard Group Inc. now owns 17,648,163 shares of the company's stock worth $977,532,000 after purchasing an additional 296,198 shares during the last quarter.

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.