Paylocity (NASDAQ:PCTY) Price Target Cut to $149.00 by Analysts at Citigroup

Paylocity (NASDAQ:PCTY) had its price objective cut by Citigroup from $179.00 to $149.00 in a research report issued on Friday,Benzinga reports. The firm currently has a “buy” rating on the software maker’s stock. Citigroup’s price objective indicates a potential upside of 26.54% from the stock’s previous close.

Several other research analysts have also recently issued reports on PCTY. Zacks Research raised shares of Paylocity from a “strong sell” rating to a “hold” rating in a report on Monday, November 10th. BTIG Research reduced their price target on shares of Paylocity from $180.00 to $150.00 and set a “buy” rating for the company in a research report on Friday. Jefferies Financial Group set a $150.00 price objective on Paylocity and gave the company a “buy” rating in a research report on Friday. TD Cowen reiterated a “buy” rating on shares of Paylocity in a research note on Friday. Finally, Stephens set a $160.00 price target on Paylocity in a research note on Friday, January 16th. Sixteen equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, Paylocity presently has a consensus rating of “Moderate Buy” and a consensus price target of $183.14.

Paylocity Trading Down 7.3%

NASDAQ:PCTY traded down $9.31 during trading hours on Friday, reaching $117.75. 1,264,492 shares of the company traded hands, compared to its average volume of 722,049. The business’s 50-day moving average price is $145.86 and its two-hundred day moving average price is $157.32. Paylocity has a 1 year low of $113.70 and a 1 year high of $223.80. The stock has a market capitalization of $6.40 billion, a P/E ratio of 29.57, a P/E/G ratio of 3.73 and a beta of 0.54.

Paylocity (NASDAQ:PCTY) last issued its quarterly earnings results on Tuesday, November 4th. The software maker reported $1.75 earnings per share for the quarter, beating the consensus estimate of $1.52 by $0.23. The firm had revenue of $408.17 million during the quarter, compared to the consensus estimate of $399.53 million. Paylocity had a return on equity of 22.07% and a net margin of 13.75%.The company’s revenue was up 12.5% on a year-over-year basis. During the same period last year, the company earned $1.66 earnings per share. As a group, equities analysts anticipate that Paylocity will post 4.36 EPS for the current year.

Insiders Place Their Bets

In other news, CFO Ryan Glenn sold 1,737 shares of Paylocity stock in a transaction on Wednesday, November 19th. The shares were sold at an average price of $143.65, for a total transaction of $249,520.05. Following the transaction, the chief financial officer owned 77,229 shares in the company, valued at $11,093,945.85. This trade represents a 2.20% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Insiders own 19.40% of the company’s stock.

Hedge Funds Weigh In On Paylocity

Institutional investors have recently bought and sold shares of the stock. Amiral Gestion raised its holdings in Paylocity by 37.6% during the 3rd quarter. Amiral Gestion now owns 84,703 shares of the software maker’s stock valued at $13,491,000 after buying an additional 23,162 shares during the period. Capital Fund Management S.A. bought a new position in Paylocity during the second quarter valued at $6,877,000. Prudential Financial Inc. increased its position in Paylocity by 342.1% during the second quarter. Prudential Financial Inc. now owns 68,883 shares of the software maker’s stock valued at $12,481,000 after acquiring an additional 53,302 shares during the last quarter. Sawgrass Asset Management LLC purchased a new stake in shares of Paylocity in the third quarter valued at $9,156,000. Finally, Hussman Strategic Advisors Inc. bought a new stake in shares of Paylocity in the 2nd quarter worth about $2,283,000. 94.76% of the stock is owned by institutional investors.

Key Paylocity News

Here are the key news stories impacting Paylocity this week:

• Positive Sentiment: Earnings & revenue beat: Q2 EPS of $1.85 and total revenue of $416.1M topped consensus, with recurring revenue up year-over-year — evidence of durable subscription demand. Paylocity Q2 results press release
• Positive Sentiment: Cash generation & buybacks: strong operating cash flow margins and $100M repurchased in Q2 ( ~$600M repurchased since May 2024) support capital return and EPS support. Press release
• Positive Sentiment: Product & channel tailwinds: management highlighted product expansion and growth in the broker channel as drivers of upside potential. Deep dive article
• Neutral Sentiment: Analyst commentaries and call transcripts published — useful for parsing management’s guide and assumptions. Earnings call transcript
• Negative Sentiment: Weaker forward guidance: company issued FY and Q3 revenue ranges below Street consensus (Q3 revenue guide notably below estimates), which prompted investor concern about near-term growth trajectory. Guidance coverage
• Negative Sentiment: Multiple price-target cuts: several firms trimmed targets (Truist, Citizens/JMP, Mizuho, BTIG, BMO), signaling analyst reassessment of near-term growth and reducing upside expectations. Analyst coverage roundup

Paylocity Company Profile

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.