Zacks Investment Research downgraded shares of Paylocity (NASDAQ:PCTY) from a strong-buy rating to a hold rating in a report published on Wednesday morning.
According to Zacks, “Paylocity is benefiting from higher recurring revenues. For the last few quarters,clients moving from traditional payroll service providers to the company’s SaaS based services contributed significantly to its revenues. Also, higher adoption of Paylocity’s ACA dashboard application, specializing in tracking employee count, employee status and health care plan affordability, is a tailwind. Shares have outperformed the industry in the year-to-date period. However, SaaS network infrastructure, which Paylocity mainly operates on, is prone to cyber threats and security breaches. Moreover, estimates have been going down ahead of the company’s Q1 earnings release. The company has mixed record of earnings surprises in recent quarters. Also, competition in the payroll processing sector from new entrants as well as existing players remains a concern.”
Several other equities research analysts also recently weighed in on the stock. BidaskClub downgraded shares of Paylocity from a buy rating to a hold rating in a research note on Tuesday. Jefferies Financial Group began coverage on shares of Paylocity in a research note on Monday, October 1st. They set a hold rating and a $88.00 target price on the stock. Bank of America upped their target price on shares of Paylocity from $73.00 to $91.00 and gave the stock a buy rating in a research note on Wednesday, September 26th. Guggenheim began coverage on shares of Paylocity in a research note on Monday, August 20th. They set a buy rating and a $80.00 target price on the stock. Finally, Raymond James reaffirmed a buy rating and set a $75.00 target price on shares of Paylocity in a research note on Monday, August 13th. Eight investment analysts have rated the stock with a hold rating and ten have assigned a buy rating to the company. The stock currently has an average rating of Buy and an average price target of $69.71.
Shares of Paylocity stock traded up $1.74 on Wednesday, reaching $65.72. The company had a trading volume of 197,213 shares, compared to its average volume of 278,047. The company has a market capitalization of $4.24 billion, a price-to-earnings ratio of 212.00, a price-to-earnings-growth ratio of 4.27 and a beta of 2.11. Paylocity has a 52-week low of $41.15 and a 52-week high of $88.47. The company has a debt-to-equity ratio of 0.01, a quick ratio of 1.08 and a current ratio of 1.08.
Paylocity (NASDAQ:PCTY) last released its quarterly earnings results on Thursday, August 9th. The software maker reported $0.11 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.12 by ($0.01). The company had revenue of $96.62 million during the quarter, compared to analysts’ expectations of $93.33 million. Paylocity had a net margin of 10.22% and a return on equity of 12.44%. Paylocity’s revenue was up 27.0% on a year-over-year basis. During the same period last year, the firm posted $0.09 earnings per share. Equities analysts expect that Paylocity will post 0.75 earnings per share for the current year.
In other Paylocity news, SVP Mark S. Kinsey sold 386 shares of the stock in a transaction that occurred on Wednesday, August 15th. The shares were sold at an average price of $66.65, for a total value of $25,726.90. Following the sale, the senior vice president now directly owns 86,331 shares of the company’s stock, valued at approximately $5,753,961.15. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, SVP Edward W. Gaty sold 7,614 shares of the stock in a transaction that occurred on Tuesday, September 4th. The shares were sold at an average price of $78.90, for a total transaction of $600,744.60. Following the completion of the sale, the senior vice president now directly owns 126,392 shares in the company, valued at $9,972,328.80. The disclosure for this sale can be found here. Over the last three months, insiders sold 1,002,124 shares of company stock worth $65,904,551. Insiders own 48.80% of the company’s stock.
Several large investors have recently made changes to their positions in PCTY. Zevenbergen Capital Investments LLC purchased a new stake in shares of Paylocity in the 1st quarter valued at approximately $30,851,000. Voya Investment Management LLC increased its position in shares of Paylocity by 3,670.3% in the 2nd quarter. Voya Investment Management LLC now owns 446,288 shares of the software maker’s stock valued at $26,269,000 after purchasing an additional 434,451 shares during the last quarter. Standard Life Aberdeen plc increased its position in shares of Paylocity by 31.4% in the 2nd quarter. Standard Life Aberdeen plc now owns 1,469,941 shares of the software maker’s stock valued at $86,521,000 after purchasing an additional 350,996 shares during the last quarter. Royal Bank of Canada increased its position in shares of Paylocity by 46.2% in the 1st quarter. Royal Bank of Canada now owns 870,958 shares of the software maker’s stock valued at $44,620,000 after purchasing an additional 275,364 shares during the last quarter. Finally, BlackRock Inc. boosted its holdings in shares of Paylocity by 15.0% in the 2nd quarter. BlackRock Inc. now owns 2,050,204 shares of the software maker’s stock valued at $120,674,000 after buying an additional 267,913 shares in the last quarter. 65.40% of the stock is currently owned by institutional investors.
Paylocity Holding Corporation provides cloud-based payroll and human capital management software solutions for medium-sized organizations in the United States. The company offers Paylocity Web Pay for enterprise-grade payroll processing and administration; Paylocity Web HR for employee record management, HR compliance and reporting, HR insight and analytics, and self-service portals; Talent Management for employee performance appraisal process and performance review; Paylocity Web Time, a time and attendance solution; and Paylocity Web Expense, an expense management tool designed to streamline and automate the expense management process.
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