Paylocity (NASDAQ:PCTY) Rating Increased to Strong-Buy at Cantor Fitzgerald

Key Points

• Paylocity has been upgraded to a "strong-buy" rating by Cantor Fitzgerald, with earnings estimates for FY2026 projected at $5.53 EPS.
• Several analysts have varied ratings for Paylocity, with an average rating of "Moderate Buy" and a consensus target price of $222.71.
• Paylocity's latest earnings report showed a 12.2% year-over-year revenue growth, with $400.74 million in revenue and an EPS of $1.56, surpassing estimates.

Cantor Fitzgerald upgraded shares of Paylocity (NASDAQ:PCTY - Free Report) to a strong-buy rating in a report released on Thursday morning,Zacks.com reports. Cantor Fitzgerald also issued estimates for Paylocity's FY2026 earnings at $5.53 EPS.

Several other research analysts also recently issued reports on the company. Citigroup reduced their price objective on Paylocity from $225.00 to $218.00 and set a "buy" rating on the stock in a report on Monday, July 21st. UBS Group boosted their target price on Paylocity from $201.00 to $202.00 and gave the stock a "neutral" rating in a research report on Wednesday, August 6th. Raymond James Financial set a $220.00 price target on Paylocity and gave the company an "outperform" rating in a report on Wednesday, July 30th. Jefferies Financial Group lowered their price objective on Paylocity from $235.00 to $225.00 and set a "buy" rating for the company 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 research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and five have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $221.59.

Paylocity Price Performance

Shares of NASDAQ:PCTY traded down $0.05 during midday trading on Thursday, reaching $165.82. The company's stock had a trading volume of 200,172 shares, compared to its average volume of 485,419. The business's fifty day simple moving average is $179.07 and its 200-day simple moving average is $184.95. The company has a debt-to-equity ratio of 0.13, a current ratio of 1.14 and a quick ratio of 1.14. Paylocity has a fifty-two week low of $159.64 and a fifty-two week high of $223.80. The company has a market capitalization of $9.15 billion, a P/E ratio of 41.26, a P/E/G ratio of 3.18 and a beta of 0.51.

Paylocity (NASDAQ:PCTY - Get Free Report) last issued its quarterly earnings data on Tuesday, August 5th. The software maker reported $1.56 EPS for the quarter, topping 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 quarter in the prior year, the firm earned $1.48 EPS. The company's 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. As a group, equities research analysts expect that Paylocity will post 4.36 EPS for the current fiscal year.

Insider Buying and Selling

In other Paylocity news, SVP Andrew Cappotelli sold 1,717 shares of the company's stock in a transaction that occurred 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. This represents a 12.56% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Insiders own 21.91% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in PCTY. TCTC Holdings LLC grew its position in Paylocity by 115.9% in the first quarter. TCTC Holdings LLC now owns 149 shares of the software maker's stock valued at $28,000 after purchasing an additional 80 shares in the last quarter. USA Financial Formulas bought a new position in shares of Paylocity in the 1st quarter valued at about $29,000. SBI Securities Co. Ltd. increased its position in shares of Paylocity by 47.4% in the second quarter. SBI Securities Co. Ltd. now owns 252 shares of the software maker's stock valued at $46,000 after acquiring an additional 81 shares during the last quarter. Hughes Financial Services LLC acquired a new stake in shares of Paylocity in the first quarter valued at about $48,000. Finally, Employees Retirement System of Texas bought a new stake in Paylocity during the second quarter worth about $51,000. 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.