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

Paylocity Holding Corporation (NASDAQ:PCTY)’s stock price dropped 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. Approximately 68,597 shares changed hands during mid-day trading, a decline of 90% from the average daily volume of 675,045 shares. The stock had previously closed at $127.05.

Other analysts have also recently issued research reports about the stock. UBS Group reduced their price objective on shares of Paylocity from $150.00 to $145.00 and set a “neutral” rating for the company in a research note on Friday. BMO Capital Markets reduced their price target on shares of Paylocity from $185.00 to $150.00 and set an “outperform” rating for the company in a research report on Friday. Zacks Research raised Paylocity from a “strong sell” rating to a “hold” rating in a research note on Monday, November 10th. Citizens Jmp dropped their price objective on Paylocity from $245.00 to $170.00 and set a “market outperform” rating for the company in a research note on Friday. Finally, JMP Securities set a $245.00 price objective on Paylocity in a report on Wednesday, November 5th. Sixteen research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Paylocity currently has an average rating of “Moderate Buy” and a consensus price target of $183.14.

Insider Buying and Selling

In other Paylocity 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 transaction of $249,520.05. Following the completion of the transaction, the chief financial officer owned 77,229 shares of the company’s stock, valued at approximately $11,093,945.85. This trade represents a 2.20% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Company 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

Institutional Trading of Paylocity

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. DekaBank Deutsche Girozentrale boosted its stake in shares of Paylocity by 0.9% during the 2nd quarter. DekaBank Deutsche Girozentrale now owns 6,148 shares of the software maker’s stock worth $1,097,000 after purchasing an additional 54 shares during the last quarter. Verdence Capital Advisors LLC raised its position in shares of Paylocity by 5.7% in the second quarter. Verdence Capital Advisors LLC now owns 1,205 shares of the software maker’s stock valued at $218,000 after buying an additional 65 shares during the last quarter. ProShare Advisors LLC lifted its stake in shares of Paylocity by 3.3% during the second quarter. ProShare Advisors LLC now owns 2,055 shares of the software maker’s stock valued at $372,000 after buying an additional 65 shares during the period. Federated Hermes Inc. boosted its position in Paylocity by 1.6% during the third quarter. Federated Hermes Inc. now owns 4,848 shares of the software maker’s stock worth $772,000 after acquiring an additional 78 shares during the last quarter. Finally, SBI Securities Co. Ltd. grew its stake in Paylocity by 47.4% in the 2nd quarter. SBI Securities Co. Ltd. now owns 252 shares of the software maker’s stock worth $46,000 after acquiring an additional 81 shares during the period. Hedge funds and other institutional investors own 94.76% of the company’s stock.

Paylocity Trading Down 7.2%

The stock has a market capitalization of $6.41 billion, a PE ratio of 27.73, a PEG ratio of 3.74 and a beta of 0.54. The company’s 50 day simple moving average is $145.27 and its 200 day simple moving average is $156.88.

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