Paylocity (NASDAQ:PCTY) Trading Down 7.3% on Analyst Downgrade

Paylocity Holding Corporation (NASDAQ:PCTY)’s stock price fell 7.3% on Friday after Mizuho lowered their price target on the stock from $180.00 to $150.00. Mizuho currently has an outperform rating on the stock. Paylocity traded as low as $122.46 and last traded at $117.7590. 68,597 shares traded hands during mid-day trading, a decline of 90% from the average session volume of 675,045 shares. The stock had previously closed at $127.05.

A number of other equities research analysts have also weighed in on the stock. Barclays set a $146.00 price objective on shares of Paylocity in a report on Friday. Guggenheim upgraded Paylocity from a “neutral” rating to a “buy” rating and set a $180.00 price target on the stock in a research note on Monday, November 10th. Zacks Research raised Paylocity from a “strong sell” rating to a “hold” rating in a report on Monday, November 10th. Cantor Fitzgerald reiterated an “overweight” rating on shares of Paylocity in a report on Thursday, January 29th. Finally, Stephens set a $160.00 target price on Paylocity in a research note on Friday, January 16th. Fifteen investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $188.89.

Insider Buying and Selling at Paylocity

In related news, CFO Ryan Glenn sold 1,737 shares of the company’s stock in a transaction dated Wednesday, November 19th. The stock was sold at an average price of $143.65, for a total value of $249,520.05. Following the completion of the sale, the chief financial officer directly owned 77,229 shares of the company’s stock, valued at $11,093,945.85. This represents a 2.20% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 19.40% of the company’s stock.

Paylocity News Summary

Here are the key news stories impacting Paylocity this week:

• Positive Sentiment: Q2 beat: Paylocity reported EPS of $1.85 vs. consensus ~$1.57 and total revenue of $416.1M (up ~10.4% YoY), showing continued top-line growth and margin strength; the company highlighted strong operating cash flow and free cash flow margins. Press Release
• Positive Sentiment: Large buybacks: Repurchased ~$100M (690k shares) in the quarter and ~$600M (3.7M shares) since May 2024, supporting EPS and signaling management confidence in long-term value. Press Release
• Neutral Sentiment: Earnings call and transcripts available — management discussed revenue trends, product/AI initiatives and channel commentary; these provide color but the market reaction centers on guidance. Earnings Highlights
• Neutral Sentiment: Full call transcripts and slide deck published (useful if you want mgmt remarks and KPIs). Transcript
• Negative Sentiment: Weak guidance vs. Street: Paylocity issued FY and Q3 revenue ranges below consensus (Q3 revenue guide ~$457.5M–$462.5M vs. est. ~$483.8M; FY revenue guidance implied ~ $1.6B vs. consensus ~ $1.7B), which investors viewed as the main catalyst for the pullback. Earnings / Guidance
• Negative Sentiment: Analyst price-target cuts: Multiple brokers (BMO, BTIG, Mizuho) cut targets to $150 (from ~$180–185) while largely maintaining buy/outperform ratings — the trims lower the implied upside and likely fed short-term selling pressure. Benzinga The Fly

Hedge Funds Weigh In On Paylocity

A number of institutional investors have recently modified their holdings of the business. Millennium Management LLC boosted its stake in Paylocity by 97.7% during the 3rd quarter. Millennium Management LLC now owns 748,803 shares of the software maker’s stock worth $119,262,000 after purchasing an additional 369,975 shares during the period. Alyeska Investment Group L.P. acquired a new stake in shares of Paylocity during the third quarter worth about $104,657,000. Dimensional Fund Advisors LP increased its position in Paylocity by 14.2% in the 3rd quarter. Dimensional Fund Advisors LP now owns 616,747 shares of the software maker’s stock valued at $98,237,000 after acquiring an additional 76,603 shares during the period. JPMorgan Chase & Co. raised its stake in Paylocity by 22.1% during the 3rd 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. Finally, Qube Research & Technologies Ltd lifted its position in Paylocity by 61.3% during the 3rd quarter. Qube Research & Technologies Ltd now owns 552,313 shares of the software maker’s stock worth $87,967,000 after acquiring an additional 209,897 shares during the period. 94.76% of the stock is owned by institutional investors and hedge funds.

Paylocity Stock Performance

The business has a 50-day simple moving average of $145.86 and a two-hundred day simple moving average of $157.32. The company has a market capitalization of $6.33 billion, a price-to-earnings ratio of 29.27, a PEG 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, topping the consensus estimate of $1.52 by $0.23. Paylocity had a return on equity of 22.07% and a net margin of 13.75%.The firm had revenue of $408.17 million during the quarter, compared to the consensus estimate of $399.53 million. During the same period last year, the company earned $1.66 earnings per share. The company’s revenue for the quarter was up 12.5% on a year-over-year basis. Research analysts predict that Paylocity Holding Corporation will post 4.36 EPS for the current fiscal year.

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.