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

Paylocity Holding Corporation (NASDAQ:PCTY)’s stock price traded down 7.3% during mid-day trading on Friday after Citigroup lowered their price target on the stock from $179.00 to $149.00. Citigroup currently has a buy rating on the stock. Paylocity traded as low as $122.46 and last traded at $117.7590. 68,597 shares were traded 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.

Several other equities analysts have also issued reports on the company. Stifel Nicolaus cut their target price on Paylocity from $188.00 to $165.00 and set a “buy” rating on the stock in a research note on Friday. Jefferies Financial Group lowered their price target on shares of Paylocity from $180.00 to $150.00 and set a “buy” rating on the stock in a report on Friday. Stephens set a $160.00 price objective on shares of Paylocity in a research note on Friday, January 16th. Guggenheim upgraded shares of Paylocity from a “neutral” rating to a “buy” rating and set a $180.00 target price for the company in a research note on Monday, November 10th. Finally, KeyCorp reduced their price target on Paylocity from $225.00 to $190.00 and set an “overweight” rating on the stock in a research report on Friday. Sixteen research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $183.14.

Insider Transactions at Paylocity

In other Paylocity news, CFO Ryan Glenn sold 1,737 shares of the company’s 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 transaction, the chief financial officer owned 77,229 shares in the company, valued at approximately $11,093,945.85. This represents a 2.20% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Insiders own 19.40% of the company’s stock.

Trending Headlines about Paylocity

Here are the key news stories impacting Paylocity this week:

• Positive Sentiment: Q2 beat — Paylocity reported EPS of $1.85 vs. $1.57 expected and total revenue of $416.1M (up 10.4% YoY), showing solid recurring-revenue growth that supports long-term profitability. GlobeNewswire Q2 Press Release
• Positive Sentiment: Strong cash flow and buybacks — trailing‑12‑month operating cash flow and free‑cash‑flow margins remain robust; company repurchased $100M (~690k shares) in Q2 and ~$600M (~3.7M shares) since May 2024, supporting EPS and shareholder returns. GlobeNewswire Q2 Press Release
• Positive Sentiment: Product and distribution drivers — management highlighted product expansion and growth through the broker channel as sources of upside to bookings and longer‑term revenue. MSN deep dive
• Neutral Sentiment: Earnings materials available — full slide deck and call transcript provide more detail on client metrics and product road map for investors who want to dig into assumptions. MarketBeat earnings packet Seeking Alpha transcript
• Negative Sentiment: Guidance disappointed — management’s FY26 and Q3 revenue guidance came in below consensus (Q3 guidance midpoint well under street estimates), which is the main near‑term catalyst behind the selloff as it suggests slower near‑term top‑line momentum. MarketBeat guidance summary
• Negative Sentiment: Analyst price‑target cuts — multiple firms (Citigroup, Truist, Citizens JMP, Mizuho, BTIG, BMO) reduced targets today (ratings largely remain buy/outperform), trimming upside and adding near‑term selling pressure despite retained positive views. Benzinga coverage

Hedge Funds Weigh In On Paylocity

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Amiral Gestion grew its position in shares of Paylocity by 37.6% in the third quarter. Amiral Gestion now owns 84,703 shares of the software maker’s stock valued at $13,491,000 after purchasing an additional 23,162 shares during the period. Capital Fund Management S.A. acquired a new position in shares of Paylocity during the 2nd quarter worth about $6,877,000. Prudential Financial Inc. lifted its stake in Paylocity by 342.1% in the 2nd quarter. Prudential Financial Inc. now owns 68,883 shares of the software maker’s stock valued at $12,481,000 after buying an additional 53,302 shares in the last quarter. Sawgrass Asset Management LLC acquired a new stake in Paylocity in the 3rd quarter worth about $9,156,000. Finally, Hussman Strategic Advisors Inc. purchased a new stake in Paylocity during the 2nd quarter worth approximately $2,283,000. Hedge funds and other institutional investors own 94.76% of the company’s stock.

Paylocity Price Performance

The business has a fifty day simple moving average of $145.27 and a 200 day simple moving average of $156.69. The firm has a market cap of $6.41 billion, a price-to-earnings ratio of 27.73, a PEG ratio of 3.47 and a beta of 0.54.

Paylocity (NASDAQ:PCTY) last posted its earnings results on Thursday, February 5th. The software maker reported $1.85 earnings per share for the quarter, beating the consensus estimate of $1.57 by $0.28. The business had revenue of $416.13 million during the quarter, compared to the consensus estimate of $408.37 million. Paylocity had a return on equity of 23.03% and a net margin of 14.19%.The business’s quarterly revenue was up 10.4% on a year-over-year basis. During the same period in the previous year, the business earned $1.52 EPS. On average, research analysts anticipate that Paylocity Holding Corporation will post 4.36 earnings per share 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.