Paylocity (NASDAQ:PCTY) Issues Earnings Results, Beats Estimates By $0.22 EPS

Key Points

• Paylocity exceeded quarterly expectations: The company reported adjusted EPS of $1.84, beating estimates by $0.22, while revenue reached $444.73 million versus the $431.46 million consensus.
• Shares rose following the results, trading at $143.32 during midday activity. The stock has a market capitalization of approximately $7.67 billion and remains below its 52-week high of $197.78.
• Analyst sentiment remains moderately bullish: Twelve analysts rate Paylocity a Buy, four rate it Hold and one rates it Sell, producing a consensus “Moderate Buy” rating and a $151.88 average price target.

Paylocity (NASDAQ:PCTY - Get Free Report) announced its quarterly earnings data on Tuesday. The software maker reported $1.84 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.62 by $0.22, FiscalAI reports. Paylocity had a return on equity of 25.63% and a net margin of 14.94%.The business had revenue of $444.73 million during the quarter, compared to analysts' expectations of $431.46 million.

Paylocity Stock Performance

Shares of NASDAQ PCTY traded up $3.55 during midday trading on Tuesday, hitting $143.32. 964,468 shares of the company's stock traded hands, compared to its average volume of 806,609. The firm has a fifty day moving average of $116.13 and a 200 day moving average of $114.31. Paylocity has a 1 year low of $92.99 and a 1 year high of $197.78. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.08 and a current ratio of 1.08. The stock has a market capitalization of $7.67 billion, a price-to-earnings ratio of 30.56 and a beta of 0.47.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on PCTY shares. Citizens Jmp lowered their price target on Paylocity from $170.00 to $150.00 and set a "market outperform" rating for the company in a research report on Friday, May 8th. Robert W. Baird set a $193.00 price objective on Paylocity in a research report on Friday, May 8th. Wall Street Zen downgraded Paylocity from a "buy" rating to a "hold" rating in a research note on Saturday, July 4th. Truist Financial reduced their target price on Paylocity from $180.00 to $165.00 and set a "buy" rating for the company in a report on Monday, June 29th. Finally, Zacks Research downgraded Paylocity from a "strong-buy" rating to a "hold" rating in a report on Monday, July 27th. Twelve analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $151.88.

Insider Activity

In related news, SVP Andrew Cappotelli sold 899 shares of the business's stock in a transaction that occurred on Tuesday, May 19th. The shares were sold at an average price of $115.05, for a total transaction of $103,429.95. Following the completion of the sale, the senior vice president directly owned 17,679 shares in the company, valued at approximately $2,033,968.95. The trade was a 4.84% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 19.40% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. Alyeska Investment Group L.P. bought a new stake in shares of Paylocity in the 3rd quarter worth about $104,657,000. Morgan Stanley increased its stake in Paylocity by 117.9% during the fourth quarter. Morgan Stanley now owns 817,209 shares of the software maker's stock worth $124,625,000 after acquiring an additional 442,218 shares during the last quarter. AQR Capital Management LLC raised its position in Paylocity by 75.1% during the fourth quarter. AQR Capital Management LLC now owns 943,591 shares of the software maker's stock valued at $143,747,000 after purchasing an additional 404,605 shares during the period. Millennium Management LLC lifted its stake in shares of Paylocity by 97.7% in the 3rd quarter. Millennium Management LLC now owns 748,803 shares of the software maker's stock valued at $119,262,000 after purchasing an additional 369,975 shares during the last quarter. Finally, Two Sigma Investments LP lifted its stake in shares of Paylocity by 114.6% in the 3rd quarter. Two Sigma Investments LP now owns 516,798 shares of the software maker's stock valued at $82,310,000 after purchasing an additional 275,959 shares during the last quarter. 94.76% of the stock is currently owned by 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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