Stephens Issues Pessimistic Forecast for Paylocity (NASDAQ:PCTY) Stock Price

Key Points

• Stephens cut its price target on Paylocity from $160 to $120 and kept an "equal weight" rating, a move that implies roughly a 9.97% upside from the stock's prior close.
• Despite several target reductions, the analyst consensus is still a "Moderate Buy" (average target $170.11) with 14 Buys vs. 4 Holds and 1 Sell, and Paylocity recently beat quarterly EPS estimates while reporting revenue up 10.4% year‑over‑year.

Paylocity (NASDAQ:PCTY - Get Free Report) had its target price decreased by investment analysts at Stephens from $160.00 to $120.00 in a report released on Friday,Benzinga reports. The firm presently has an "equal weight" rating on the software maker's stock. Stephens' target price points to a potential upside of 9.97% from the stock's previous close.

Several other research analysts have also recently issued reports on the stock. Citigroup reissued an "outperform" rating on shares of Paylocity in a report on Friday, February 6th. TD Cowen reissued a "buy" rating on shares of Paylocity in a report on Friday, February 6th. Mizuho decreased their price target on Paylocity from $180.00 to $150.00 and set an "outperform" rating on the stock in a research note on Friday, February 6th. Barclays reduced their target price on Paylocity from $146.00 to $120.00 and set an "equal weight" rating for the company in a report on Monday, April 20th. Finally, Jefferies Financial Group reduced their price objective on shares of Paylocity from $180.00 to $150.00 and set a "buy" rating for the company in a research note on Friday, February 6th. Fourteen investment analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $170.11.

Paylocity Price Performance

Paylocity stock opened at $109.12 on Friday. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.04 and a quick ratio of 1.04. The business has a 50 day simple moving average of $107.07 and a 200-day simple moving average of $128.85. Paylocity has a 12 month low of $92.99 and a 12 month high of $201.97. The stock has a market capitalization of $5.88 billion, a PE ratio of 25.68, a price-to-earnings-growth ratio of 2.97 and a beta of 0.49.

Paylocity (NASDAQ:PCTY - Get Free Report) last posted its quarterly earnings data on Thursday, February 5th. The software maker reported $1.85 earnings per share for the quarter, beating analysts' consensus estimates of $1.57 by $0.28. Paylocity had a net margin of 14.19% and a return on equity of 23.44%. The firm had revenue of $416.13 million for the quarter, compared to analyst estimates of $408.37 million. During the same period last year, the firm posted $1.52 EPS. Paylocity's quarterly revenue was up 10.4% on a year-over-year basis. Equities analysts predict that Paylocity will post 5.31 earnings per share for the current year.

Institutional Trading of Paylocity

Several institutional investors and hedge funds have recently modified their holdings of PCTY. JPMorgan Chase & Co. boosted its stake in shares of Paylocity by 22.1% during the third quarter. JPMorgan Chase & Co. now owns 555,393 shares of the software maker's stock valued at $88,459,000 after acquiring an additional 100,400 shares during the last quarter. Hillsdale Investment Management Inc. acquired a new position in Paylocity in the 3rd quarter valued at about $2,580,000. Sawgrass Asset Management LLC purchased a new position in Paylocity in the 3rd quarter valued at about $9,156,000. Assenagon Asset Management S.A. boosted its stake in shares of Paylocity by 311.5% during the 4th quarter. Assenagon Asset Management S.A. now owns 432,070 shares of the software maker's stock worth $65,891,000 after purchasing an additional 327,082 shares during the last quarter. Finally, Tudor Investment Corp ET AL grew its holdings in shares of Paylocity by 50.7% during the third quarter. Tudor Investment Corp ET AL now owns 83,304 shares of the software maker's stock worth $13,268,000 after buying an additional 28,016 shares in the last quarter. Hedge funds and other institutional investors own 94.76% of the company's stock.

About Paylocity

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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