Paylocity (NASDAQ:PCTY) Stock Rating Upgraded by Zacks Research

Key Points

• Zacks Research upgraded Paylocity's stock rating from "strong sell" to "hold," indicating a more favorable outlook for the company.
• Paylocity reported a quarterly earnings per share of $1.56, surpassing analysts' estimates and reflecting a 12.2% increase in revenue year-over-year.
• The current consensus rating for Paylocity is "Moderate Buy" with an average target price of $222.71, based on multiple ratings from various analysts.

Paylocity (NASDAQ:PCTY - Get Free Report) was upgraded by equities research analysts at Zacks Research from a "strong sell" rating to a "hold" rating in a report released on Thursday,Zacks.com reports.

PCTY has been the topic of a number of other reports. Stephens assumed coverage on shares of Paylocity in a research report on Monday, July 21st. They issued an "equal weight" rating and a $200.00 price objective on the stock. Raymond James Financial set a $220.00 price objective on shares of Paylocity and gave the company an "outperform" rating in a research report on Wednesday, July 30th. KeyCorp boosted their target price on shares of Paylocity from $220.00 to $225.00 and gave the stock an "overweight" rating in a research report on Wednesday, August 6th. UBS Group boosted their target price on shares of Paylocity from $201.00 to $202.00 and gave the stock a "neutral" rating in a research report on Wednesday, August 6th. Finally, Needham & Company LLC restated a "buy" rating and set a $250.00 target price on shares of Paylocity in a research report on Friday, July 18th. One investment analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $222.71.

Paylocity Stock Performance

NASDAQ:PCTY opened at $169.68 on Thursday. The firm's fifty day moving average price is $179.79 and its 200 day moving average price is $185.58. Paylocity has a 1-year low of $154.91 and a 1-year high of $223.80. The company has a debt-to-equity ratio of 0.13, a current ratio of 1.14 and a quick ratio of 1.14. The firm has a market cap of $9.36 billion, a price-to-earnings ratio of 42.31, a price-to-earnings-growth ratio of 3.27 and a beta of 0.51.

Paylocity (NASDAQ:PCTY - Get Free Report) last posted its quarterly earnings data on Tuesday, August 5th. The software maker reported $1.56 earnings per share for the quarter, beating analysts' consensus estimates of $1.38 by $0.18. Paylocity had a net margin of 14.24% and a return on equity of 22.08%. The firm had revenue of $400.74 million for the quarter, compared to analyst estimates of $388.25 million. During the same period last year, the firm posted $1.48 EPS. Paylocity's quarterly revenue was up 12.2% on a year-over-year basis. Paylocity has set its FY 2026 guidance at EPS. Q1 2026 guidance at EPS. On average, sell-side analysts expect that Paylocity will post 4.36 EPS for the current year.

Insider Activity

In other news, SVP Andrew Cappotelli sold 1,717 shares of Paylocity stock in a transaction on Monday, June 23rd. The stock was sold at an average price of $176.74, for a total transaction of $303,462.58. Following the completion of the transaction, the senior vice president owned 11,953 shares of the company's stock, valued at $2,112,573.22. The trade was a 12.56% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. 21.91% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in PCTY. TCTC Holdings LLC raised its stake in shares of Paylocity by 115.9% during the 1st quarter. TCTC Holdings LLC now owns 149 shares of the software maker's stock worth $28,000 after buying an additional 80 shares during the last quarter. USA Financial Formulas acquired a new position in shares of Paylocity during the 1st quarter worth $29,000. SBI Securities Co. Ltd. raised its stake in shares of Paylocity by 47.4% during the 2nd quarter. SBI Securities Co. Ltd. now owns 252 shares of the software maker's stock worth $46,000 after buying an additional 81 shares during the last quarter. Hughes Financial Services LLC acquired a new position in shares of Paylocity during the 1st quarter worth $48,000. Finally, Employees Retirement System of Texas acquired a new position in shares of Paylocity during the 2nd quarter worth $51,000. Institutional investors and hedge funds own 94.76% of the company's stock.

Paylocity Company Profile

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.

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