Paylocity (PCTY) Upgraded by Zacks Investment Research to “Hold”

Paylocity (NASDAQ:PCTY) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research report issued to clients and investors on Wednesday.

According to Zacks, “Paylocity’s Q2 top and bottom line surpassed the respective Zacks Consensus Estimate and marked year-over-year improvement as well. Outlook for Q3 and FY18 were also encouraging. We remain positive about Paylocity’s regular investments in SaaS technology. For the last few quarters, clients moving from traditional payroll service providers to the company’s SaaS-based services contributed significantly to its revenues. Hence, regular investments in technological upgrades, along with product innovation, will continue to boost the company’s top line. Also, higher adoption of Paylocity’s ACA dashboard application, specializing in tracking employee count, employee status and health care plan affordability, will act as a tailwind. Notably, Paylocity has outperformed the industry in the last one year. However, competition in the payroll processing sector from new entrants as well as existing players remains a major headwind.”

A number of other brokerages have also weighed in on PCTY. Dougherty & Co started coverage on Paylocity in a research note on Tuesday, December 19th. They set a “neutral” rating for the company. BidaskClub upgraded Paylocity from a “sell” rating to a “hold” rating in a research report on Tuesday, December 19th. Robert W. Baird lifted their target price on Paylocity from $52.00 to $56.00 and gave the stock an “outperform” rating in a research report on Friday, November 3rd. Bank of America lifted their target price on Paylocity from $50.00 to $56.00 and gave the stock a “buy” rating in a research report on Tuesday, October 24th. Finally, TheStreet lowered Paylocity from a “b-” rating to a “c+” rating in a research report on Tuesday, December 5th. Eight equities research analysts have rated the stock with a hold rating and ten have given a buy rating to the company’s stock. The company currently has an average rating of “Buy” and an average price target of $52.92.

Shares of Paylocity (NASDAQ:PCTY) traded down $1.34 during midday trading on Wednesday, reaching $42.91. The company’s stock had a trading volume of 590,100 shares, compared to its average volume of 245,832. Paylocity has a 12-month low of $34.13 and a 12-month high of $53.96. The firm has a market cap of $2,260.00, a price-to-earnings ratio of 195.05, a PEG ratio of 6.18 and a beta of 2.09.

Paylocity (NASDAQ:PCTY) last issued its quarterly earnings data on Thursday, February 8th. The software maker reported $0.16 earnings per share for the quarter, beating analysts’ consensus estimates of $0.12 by $0.04. Paylocity had a return on equity of 9.09% and a net margin of 3.57%. The firm had revenue of $86.00 million during the quarter, compared to analyst estimates of $85.03 million. During the same quarter last year, the firm earned $0.10 EPS. Paylocity’s quarterly revenue was up 25.3% on a year-over-year basis. research analysts anticipate that Paylocity will post 0.33 EPS for the current fiscal year.

In other Paylocity news, SVP Edward W. Gaty sold 5,062 shares of Paylocity stock in a transaction on Friday, December 1st. The stock was sold at an average price of $45.82, for a total transaction of $231,940.84. Following the sale, the senior vice president now owns 116,135 shares of the company’s stock, valued at approximately $5,321,305.70. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Michael R. Haske sold 9,700 shares of Paylocity stock in a transaction on Thursday, January 18th. The shares were sold at an average price of $50.10, for a total value of $485,970.00. Following the sale, the insider now directly owns 1,201,844 shares in the company, valued at approximately $60,212,384.40. The disclosure for this sale can be found here. In the last three months, insiders sold 1,369,846 shares of company stock worth $63,474,241. Company insiders own 48.80% of the company’s stock.

Institutional investors and hedge funds have recently bought and sold shares of the company. Franklin Resources Inc. grew its holdings in shares of Paylocity by 40.1% in the 1st quarter. Franklin Resources Inc. now owns 2,643,065 shares of the software maker’s stock worth $86,534,000 after acquiring an additional 756,779 shares during the last quarter. Vanguard Group Inc. grew its stake in Paylocity by 3.8% in the second quarter. Vanguard Group Inc. now owns 2,070,015 shares of the software maker’s stock valued at $93,524,000 after purchasing an additional 75,709 shares in the last quarter. FMR LLC grew its stake in Paylocity by 5.2% in the second quarter. FMR LLC now owns 1,963,017 shares of the software maker’s stock valued at $88,689,000 after purchasing an additional 97,368 shares in the last quarter. Lord Abbett & CO. LLC lifted its position in shares of Paylocity by 15.0% in the fourth quarter. Lord Abbett & CO. LLC now owns 1,948,787 shares of the software maker’s stock worth $79,023,000 after buying an additional 253,643 shares during the last quarter. Finally, BlackRock Inc. lifted its position in shares of Paylocity by 1.7% in the fourth quarter. BlackRock Inc. now owns 1,821,962 shares of the software maker’s stock worth $85,924,000 after buying an additional 30,155 shares during the last quarter. 60.47% of the stock is currently owned by institutional investors.

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About Paylocity

Paylocity Holding Corporation is a cloud-based provider of payroll and human capital management (HCM), software solutions for medium-sized organizations. The Company’s services are provided in a software-as-a-service delivery model utilizing its cloud-based platform. The cloud-based platform provides a suite of applications using a multi-tenant architecture.

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