Paylocity (NASDAQ:PCTY) Issues Quarterly Earnings Results, Beats Estimates By $0.18 EPS

Key Points

• Paylocity reported an earnings per share (EPS) of $0.99, missing analysts' expectations by $0.40, as they had forecasted $1.39.
• Following the earnings announcement, Paylocity's stock price fell by 1.0% to $181.71, with a significant trading volume of 873,880 shares.
• Despite the earnings miss, analysts maintain a consensus rating of "Moderate Buy" for Paylocity, with a target price averaging $223.13.

Paylocity (NASDAQ:PCTY - Get Free Report) announced its quarterly earnings results on Tuesday. The software maker reported $1.56 earnings per share for the quarter, beating the consensus estimate of $1.38 by $0.18, Briefing.com reports. Paylocity had a net margin of 14.24% and a return on equity of 22.08%. The business had revenue of $400.74 million for the quarter, compared to analysts' expectations of $388.25 million. During the same quarter last year, the firm earned $1.48 EPS. The firm's revenue for the quarter was up 12.2% compared to the same quarter last year. Paylocity updated its FY 2026 guidance to EPS and its Q1 2026 guidance to EPS.

Paylocity Stock Performance

PCTY stock traded down $6.75 during midday trading on Friday, reaching $176.94. 661,959 shares of the company's stock traded hands, compared to its average volume of 533,513. The company has a 50-day moving average price of $183.48 and a two-hundred day moving average price of $191.29. The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.13 and a current ratio of 1.14. Paylocity has a 52 week low of $146.02 and a 52 week high of $223.80. The firm has a market capitalization of $9.76 billion, a PE ratio of 44.12, a price-to-earnings-growth ratio of 3.64 and a beta of 0.54.

Analyst Upgrades and Downgrades

Several equities analysts have commented on the stock. Piper Sandler reissued an "overweight" rating and set a $258.00 target price (up previously from $254.00) on shares of Paylocity in a research report on Friday, May 2nd. Mizuho dropped their target price on shares of Paylocity from $245.00 to $220.00 and set an "outperform" rating on the stock in a research report on Tuesday, April 15th. Citigroup dropped their target price on shares of Paylocity from $225.00 to $218.00 and set a "buy" rating on the stock in a research report on Monday, July 21st. BMO Capital Markets lifted their target price on shares of Paylocity from $226.00 to $230.00 and gave the stock an "outperform" rating in a research report on Wednesday. Finally, Stephens assumed coverage on shares of Paylocity in a research report on Monday, July 21st. They set an "equal weight" rating and a $200.00 target price on the stock. Four research analysts have rated the stock with a hold rating and thirteen have assigned a buy rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $223.19.

Insider Transactions at Paylocity

In other news, SVP Andrew Cappotelli sold 1,717 shares of the company's stock in a transaction on Monday, June 23rd. The shares were sold at an average price of $176.74, for a total value of $303,462.58. Following the transaction, the senior vice president owned 11,953 shares of the company's stock, valued at approximately $2,112,573.22. This represents a 12.56% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 21.91% of the stock is owned by insiders.

Institutional Inflows and Outflows

A hedge fund recently raised its stake in Paylocity stock. Focus Partners Wealth lifted its position in Paylocity Holding Corporation (NASDAQ:PCTY - Free Report) by 24.5% during the 1st quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 1,365 shares of the software maker's stock after purchasing an additional 269 shares during the quarter. Focus Partners Wealth's holdings in Paylocity were worth $256,000 at the end of the most recent quarter. Institutional investors and hedge funds own 94.76% of the company's stock.

About Paylocity

Paylocity Holding Corporation engages in the provision of cloud-based human capital management and payroll software solutions for workforce in the United States. The company offers payroll software solution for global payroll, expense management, tax services, on demand payment, and garnishment managed services; and time and labor management software for time and attendance, scheduling, and time collection.