Paylocity (NASDAQ:PCTY) Hits New 1-Year Low – Should You Sell?

Paylocity Holding Corporation (NASDAQ:PCTY)’s stock price reached a new 52-week low during trading on Wednesday . The stock traded as low as $123.71 and last traded at $125.5850, with a volume of 36363 shares changing hands. The stock had previously closed at $127.26.

Analyst Upgrades and Downgrades

PCTY has been the topic of several research reports. Citizens Jmp cut their price objective on shares of Paylocity from $270.00 to $245.00 and set a “market outperform” rating on the stock in a report on Wednesday, November 5th. BTIG Research began coverage on Paylocity in a report on Tuesday, December 16th. They issued a “buy” rating and a $180.00 price target on the stock. Cantor Fitzgerald reissued an “overweight” rating on shares of Paylocity in a research report on Thursday, January 29th. Weiss Ratings downgraded Paylocity from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Tuesday, January 27th. Finally, Guggenheim upgraded Paylocity from a “neutral” rating to a “buy” rating and set a $180.00 target price on the stock in a research note on Monday, November 10th. Fifteen 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. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $204.05.

Paylocity Trading Up 0.1%

The stock has a market capitalization of $6.93 billion, a PE ratio of 31.93, a price-to-earnings-growth ratio of 3.99 and a beta of 0.54. The company’s 50-day moving average is $146.67 and its 200 day moving average is $157.75.

Paylocity (NASDAQ:PCTY) last issued its quarterly earnings results 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. The business had revenue of $408.17 million for the quarter, compared to analyst estimates of $399.53 million. Paylocity had a net margin of 13.75% and a return on equity of 22.07%. Paylocity’s revenue for the quarter was up 12.5% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.66 EPS. Sell-side analysts forecast that Paylocity Holding Corporation will post 4.36 EPS for the current fiscal year.

Insider Activity

In related news, CFO Ryan Glenn sold 1,737 shares of the firm’s stock in a transaction on 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 transaction, the chief financial officer owned 77,229 shares in the company, valued at $11,093,945.85. This trade represents a 2.20% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. 19.40% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of PCTY. Amiral Gestion increased its stake in shares of Paylocity by 37.6% during the third quarter. Amiral Gestion now owns 84,703 shares of the software maker’s stock worth $13,491,000 after purchasing an additional 23,162 shares in the last quarter. Capital Fund Management S.A. purchased a new stake in Paylocity during the 2nd quarter worth approximately $6,877,000. Prudential Financial Inc. raised its holdings in shares of Paylocity by 342.1% during the second quarter. Prudential Financial Inc. now owns 68,883 shares of the software maker’s stock valued at $12,481,000 after acquiring an additional 53,302 shares during the last quarter. Sawgrass Asset Management LLC purchased a new position in shares of Paylocity in the third quarter valued at approximately $9,156,000. Finally, Hussman Strategic Advisors Inc. acquired a new stake in shares of Paylocity in the second quarter worth approximately $2,283,000. 94.76% of the stock is owned by institutional investors and hedge funds.

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.