Citigroup Cuts Paylocity (NASDAQ:PCTY) Price Target to $149.00

Paylocity (NASDAQ:PCTY) had its target price reduced by Citigroup from $179.00 to $149.00 in a research note published on Friday morning,Benzinga reports. They currently have a buy rating on the software maker’s stock.

A number of other research firms have also recently commented on PCTY. Guggenheim raised Paylocity from a “neutral” rating to a “buy” rating and set a $180.00 price target on the stock in a report on Monday, November 10th. Robert W. Baird set a $220.00 target price on Paylocity in a research note on Friday. BMO Capital Markets lowered their price target on Paylocity from $185.00 to $150.00 and set an “outperform” rating on the stock in a report on Friday. Jefferies Financial Group cut their price objective on shares of Paylocity from $180.00 to $150.00 and set a “buy” rating for the company in a report on Friday. Finally, KeyCorp lowered their target price on shares of Paylocity from $225.00 to $190.00 and set an “overweight” rating on the stock in a report on Friday. Sixteen analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Paylocity presently has an average rating of “Moderate Buy” and a consensus target price of $183.14.

Paylocity Price Performance

NASDAQ PCTY opened at $117.85 on Friday. Paylocity has a 12 month low of $113.70 and a 12 month high of $223.80. The stock 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. The company’s 50 day moving average is $145.27 and its two-hundred day moving average is $156.48. The company has a current ratio of 1.04, a quick ratio of 1.07 and a debt-to-equity ratio of 0.07.

Paylocity (NASDAQ:PCTY) last posted its quarterly earnings results on Thursday, February 5th. The software maker reported $1.85 earnings per share for the quarter, topping analysts’ consensus estimates of $1.57 by $0.28. The business had revenue of $416.13 million during the quarter, compared to analyst estimates of $408.37 million. Paylocity had a net margin of 14.19% and a return on equity of 23.44%. The company’s revenue was up 10.4% on a year-over-year basis. During the same period in the prior year, the business posted $1.52 earnings per share. As a group, research analysts anticipate that Paylocity will post 4.36 earnings per share for the current year.

Insiders Place Their Bets

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

Institutional Trading of Paylocity

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

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.