Riverbridge Partners LLC Reduces Holdings in Paylocity Holding Corporation $PCTY

Key Points

• Riverbridge Partners trimmed its Paylocity stake by 14.3%, selling 82,299 shares and now holds 493,463 shares valued at about $75.25 million, making PCTY its 21st-largest position.
• Paylocity beat Q4 expectations with $1.85 EPS (vs. $1.57 est.) and revenue of $416.13M (+10.4% YoY), but analysts are mixed — the consensus is a Moderate Buy with an average target of $180.05 while some firms have cut targets to the $145–$150 range.
• Institutional ownership is very high at 94.76%, with several other funds making small adjustments to their PCTY positions.

Riverbridge Partners LLC lowered its position in shares of Paylocity Holding Corporation (NASDAQ:PCTY - Free Report) by 14.3% during the fourth quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 493,463 shares of the software maker's stock after selling 82,299 shares during the period. Paylocity comprises about 1.4% of Riverbridge Partners LLC's holdings, making the stock its 21st largest position. Riverbridge Partners LLC owned 0.91% of Paylocity worth $75,253,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also made changes to their positions in the company. MassMutual Private Wealth & Trust FSB grew its stake in Paylocity by 363.4% during the 4th quarter. MassMutual Private Wealth & Trust FSB now owns 190 shares of the software maker's stock worth $29,000 after buying an additional 149 shares during the last quarter. Advisory Services Network LLC purchased a new stake in Paylocity in the third quarter valued at approximately $38,000. Pilgrim Partners Asia Pte Ltd purchased a new stake in Paylocity in the third quarter valued at approximately $41,000. Employees Retirement System of Texas acquired a new stake in shares of Paylocity in the second quarter valued at approximately $51,000. Finally, Allworth Financial LP boosted its holdings in shares of Paylocity by 88.0% in the third quarter. Allworth Financial LP now owns 282 shares of the software maker's stock valued at $45,000 after acquiring an additional 132 shares during the period. 94.76% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on the stock. BMO Capital Markets cut their target price on shares of Paylocity from $185.00 to $150.00 and set an "outperform" rating on the stock in a report on Friday, February 6th. UBS Group decreased their price target on shares of Paylocity from $150.00 to $145.00 and set a "neutral" rating for the company in a research note on Friday, February 6th. Weiss Ratings downgraded shares of Paylocity from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Tuesday, January 27th. Robert W. Baird set a $220.00 price objective on shares of Paylocity in a research note on Friday, February 6th. Finally, TD Cowen reiterated a "buy" rating on shares of Paylocity in a research note on Friday, February 6th. Fifteen equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, Paylocity has a consensus rating of "Moderate Buy" and an average target price of $180.05.

Paylocity Trading Up 1.3%

Shares of Paylocity stock opened at $111.03 on Friday. The firm has a market cap of $5.98 billion, a price-to-earnings ratio of 26.12, a price-to-earnings-growth ratio of 3.17 and a beta of 0.58. Paylocity Holding Corporation has a 52-week low of $100.50 and a 52-week high of $201.97. The company's 50-day simple moving average is $118.57 and its 200-day simple moving average is $140.39. The company has a quick ratio of 1.04, a current ratio of 1.04 and a debt-to-equity ratio of 0.07.

Paylocity (NASDAQ:PCTY - Get Free Report) last announced its quarterly earnings data on Thursday, February 5th. The software maker reported $1.85 EPS for the quarter, beating analysts' consensus estimates of $1.57 by $0.28. Paylocity had a net margin of 14.19% and a return on equity of 23.44%. The firm had revenue of $416.13 million during the quarter, compared to the consensus estimate of $408.37 million. During the same quarter last year, the firm earned $1.52 earnings per share. The firm's revenue was up 10.4% compared to the same quarter last year. As a group, equities research analysts anticipate that Paylocity Holding Corporation will post 4.36 earnings per share for the current year.

About Paylocity

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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