Paylocity Holding Corporation (NASDAQ:PCTY) Receives Consensus Recommendation of "Moderate Buy" from Analysts

Key Points

• Analyst sentiment is favorable: Paylocity has a “Moderate Buy” consensus from 17 analysts, including 12 buy ratings, four holds and one sell. The average 12-month price target is $160, modestly above the stock’s reported $151.49 price.
• Quarterly results exceeded expectations: Paylocity reported adjusted earnings of $1.84 per share versus the $1.62 consensus estimate, while revenue reached $444.73 million, up 11% year over year and above forecasts.
• Recent target revisions are mixed but generally positive: TD Cowen and BMO raised their targets to $168 and $175, respectively, while Barclays also increased its target; Stephens lowered its objective to $120 and maintained an equal-weight rating.

Paylocity Holding Corporation (NASDAQ:PCTY - Get Free Report) has been assigned a consensus rating of "Moderate Buy" from the seventeen ratings firms that are currently covering the firm, Marketbeat Ratings reports. One investment analyst has rated the stock with a sell rating, four have issued a hold rating and twelve have assigned a buy rating to the company. The average 12 month target price among brokers that have updated their coverage on the stock in the last year is $160.00.

Several research analysts have commented on the company. TD Cowen lifted their price target on Paylocity from $137.00 to $168.00 and gave the stock a "buy" rating in a research report on Wednesday. BMO Capital Markets increased their price objective on Paylocity from $143.00 to $175.00 and gave the company an "outperform" rating in a research report on Wednesday. Stephens reduced their price objective on Paylocity from $160.00 to $120.00 and set an "equal weight" rating for the company in a research report on Friday, May 8th. Barclays raised their price objective on shares of Paylocity from $128.00 to $154.00 and gave the stock an "equal weight" rating in a research note on Wednesday. Finally, Raymond James Financial set a $140.00 target price on shares of Paylocity in a research note on Friday, May 8th.

Paylocity Trading Up 2.5%

Shares of NASDAQ:PCTY opened at $151.49 on Friday. The company has a market cap of $8.11 billion, a P/E ratio of 30.60 and a beta of 0.48. The stock's 50-day moving average is $118.39 and its 200-day moving average is $114.45. Paylocity has a 52-week low of $92.99 and a 52-week high of $190.52. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.08 and a current ratio of 1.09.

Paylocity (NASDAQ:PCTY - Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The software maker reported $1.84 earnings per share for the quarter, topping the consensus estimate of $1.62 by $0.22. Paylocity had a return on equity of 27.02% and a net margin of 15.23%.The business had revenue of $444.73 million during the quarter, compared to analysts' expectations of $431.46 million. During the same quarter in the previous year, the firm earned $1.56 EPS. The firm's revenue was up 11.0% compared to the same quarter last year. Equities research analysts predict that Paylocity will post 6.28 earnings per share for the current year.

Insider Activity

In other news, SVP Andrew Cappotelli sold 899 shares of the company's stock in a transaction that occurred on Tuesday, May 19th. The stock was sold at an average price of $115.05, for a total value of $103,429.95. Following the sale, the senior vice president directly owned 17,679 shares in the company, valued at approximately $2,033,968.95. This represents a 4.84% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 19.40% of the company's stock.

Hedge Funds Weigh In On Paylocity

A number of large investors have recently modified their holdings of PCTY. AQR Capital Management LLC lifted its holdings in Paylocity by 75.1% during the 4th quarter. AQR Capital Management LLC now owns 943,591 shares of the software maker's stock worth $143,747,000 after buying an additional 404,605 shares in the last quarter. Morgan Stanley raised its position in shares of Paylocity by 117.9% in the 4th quarter. Morgan Stanley now owns 817,209 shares of the software maker's stock valued at $124,625,000 after acquiring an additional 442,218 shares during the period. Millennium Management LLC boosted its position in shares of Paylocity by 97.7% during the third quarter. Millennium Management LLC now owns 748,803 shares of the software maker's stock worth $119,262,000 after purchasing an additional 369,975 shares in the last quarter. Dimensional Fund Advisors LP lifted its holdings in Paylocity by 6.9% during the fourth quarter. Dimensional Fund Advisors LP now owns 659,472 shares of the software maker's stock worth $100,570,000 after acquiring an additional 42,725 shares in the last quarter. Finally, Alyeska Investment Group L.P. acquired a new position in shares of Paylocity in the 3rd quarter valued at approximately $104,657,000. 94.76% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting Paylocity

Here are the key news stories impacting Paylocity this week:

• Positive Sentiment: Strong quarterly results: Paylocity topped fiscal Q4 earnings and revenue estimates, while recurring revenue increased 12.4% year over year. Management also provided a fiscal 2027 outlook viewed as consistent with balanced growth. Paylocity Q4 Earnings Beat Estimates, Revenues Increase Y/Y
• Positive Sentiment: AI and product expansion: An earnings deep dive highlighted Paylocity’s efforts to use AI to broaden its payroll, human-capital-management and employee-experience offerings. Investors may view these initiatives as supporting customer retention, higher platform adoption and longer-term revenue growth. PCTY Q2 deep dive: AI-driven product expansion and balanced growth shape outlook
• Positive Sentiment: Broad analyst support: BMO Capital Markets raised its target to $175 from $143 and maintained an “outperform” rating. BTIG increased its target to $180 from $150 with a “buy” rating, while Cantor Fitzgerald raised its target to $165 from $140 and assigned an “overweight” rating. The revisions indicate improved confidence in Paylocity’s earnings trajectory. Analyst price-target updates
• Neutral Sentiment: Investor focus: The earnings call and presentation emphasized execution against the fiscal 2027 plan, recurring-revenue trends and the pace at which AI-enabled products contribute to growth. Paylocity Q4 2026 Earnings Call Transcript

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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