Truist Financial Has Lowered Expectations for Paylocity (NASDAQ:PCTY) Stock Price

Paylocity (NASDAQ:PCTY) had its price objective lowered by equities research analysts at Truist Financial from $240.00 to $180.00 in a note issued to investors on Friday,Benzinga reports. The brokerage currently has a “buy” rating on the software maker’s stock. Truist Financial’s price target suggests a potential upside of 53.09% from the company’s previous close.

Several other analysts have also recently weighed in on the company. UBS Group set a $145.00 price objective on Paylocity in a research report on Friday. Cantor Fitzgerald reiterated an “overweight” rating on shares of Paylocity in a report on Thursday, January 29th. KeyCorp set a $190.00 target price on shares of Paylocity and gave the company an “overweight” rating in a research note on Friday. TD Cowen reiterated a “buy” rating on shares of Paylocity in a research note on Friday. Finally, Stifel Nicolaus set a $165.00 price objective on shares of Paylocity in a research report on Friday. Sixteen equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $182.80.

Paylocity Stock Down 7.5%

Shares of NASDAQ PCTY traded down $9.47 during mid-day trading on Friday, reaching $117.58. 692,502 shares of the company were exchanged, compared to its average volume of 699,520. The stock has a market capitalization of $6.39 billion, a PE ratio of 29.59, a PEG ratio of 3.73 and a beta of 0.54. Paylocity has a 52 week low of $113.70 and a 52 week high of $223.80. The company’s 50 day moving average price is $145.86 and its 200 day moving average price is $157.32.

Paylocity (NASDAQ:PCTY) last announced its quarterly earnings data on Tuesday, November 4th. The software maker reported $1.75 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.52 by $0.23. Paylocity had a net margin of 13.75% and a return on equity of 22.07%. The company had revenue of $408.17 million during the quarter, compared to analysts’ expectations of $399.53 million. During the same quarter in the prior year, the company earned $1.66 EPS. The firm’s revenue was up 12.5% on a year-over-year basis. On average, sell-side analysts predict that Paylocity will post 4.36 earnings per share for the current year.

Insider Activity

In other news, CFO Ryan Glenn sold 1,737 shares of Paylocity stock in a transaction that occurred 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 completion of the sale, the chief financial officer owned 77,229 shares of the company’s stock, valued at approximately $11,093,945.85. The trade was a 2.20% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Corporate insiders own 19.40% of the company’s stock.

Hedge Funds Weigh In On Paylocity

A number of large investors have recently made changes to their positions in the business. Flagship Harbor Advisors LLC acquired a new stake in Paylocity during the 4th quarter valued at approximately $27,000. MassMutual Private Wealth & Trust FSB boosted its position in shares of Paylocity by 363.4% during the 4th quarter. MassMutual Private Wealth & Trust FSB now owns 190 shares of the software maker’s stock valued at $29,000 after acquiring an additional 149 shares during the last quarter. Advisory Services Network LLC purchased a new stake in Paylocity in the third quarter valued at $38,000. Pilgrim Partners Asia Pte Ltd purchased a new position in shares of Paylocity during the 3rd quarter worth approximately $41,000. Finally, Allworth Financial LP grew its position in Paylocity by 88.0% in the 3rd quarter. Allworth Financial LP now owns 282 shares of the software maker’s stock valued at $45,000 after acquiring an additional 132 shares in the last quarter. 94.76% of the stock is owned by institutional investors and hedge funds.

More Paylocity News

Here are the key news stories impacting Paylocity this week:

• Positive Sentiment: Q2 results beat Street expectations: Paylocity reported EPS of $1.85 (vs. ~$1.57 est.) and revenue of $416.1M (up ~10% y/y), showing continued top‑line growth that supports long‑term fundamentals. GlobeNewswire: Q2 Results
• Positive Sentiment: Strong cash generation and buybacks: Paylocity highlighted robust cash flow margins and repurchased ~$100M in Q2 (about 690k shares), part of ~$600M repurchased since May 2024 — a shareholder‑friendly use of cash. GlobeNewswire: Cash Flow & Buybacks
• Neutral Sentiment: Analysts maintained buy/outperform stances even after trimming targets — suggests confidence in long‑run story despite nearer‑term concerns. The Fly: Analyst Notes
• Neutral Sentiment: Earnings call transcripts and market writeups are available for investors who want management’s color on results, AI initiatives and margin drivers. Seeking Alpha: Q2 Call Transcript
• Negative Sentiment: Guidance disappointed: Paylocity’s FY‑26 and Q3 revenue range came in below consensus (company cited ~$1.6B FY revenue vs. ~ $1.7B consensus and lower Q3 revenue guidance), which investors view as a nearer‑term growth slowdown risk. Investing.com: Guidance Concerns
• Negative Sentiment: Multiple price‑target cuts (Mizuho, BTIG, BMO lowered targets to ~$150 from $180–185) amplified selling pressure despite those firms keeping buy/outperform ratings. The Fly: PT Cuts

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.