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

Paylocity (NASDAQ:PCTY) had its target price lowered by investment analysts at Citigroup from $179.00 to $149.00 in a research report issued on Friday,Benzinga reports. The brokerage currently has a “buy” rating on the software maker’s stock. Citigroup’s price objective would indicate a potential upside of 26.43% from the stock’s previous close.

Other equities analysts have also issued research reports about the company. TD Cowen reiterated a “buy” rating on shares of Paylocity in a research note on Friday. Mizuho lowered their price target on shares of Paylocity from $180.00 to $150.00 and set an “outperform” rating on the stock in a report on Friday. Stifel Nicolaus cut their price objective on shares of Paylocity from $188.00 to $165.00 and set a “buy” rating on the stock in a research report on Friday. BTIG Research reduced their price objective on shares of Paylocity from $180.00 to $150.00 and set a “buy” rating for the company in a research note on Friday. Finally, Weiss Ratings cut shares of Paylocity from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Tuesday, January 27th. Sixteen equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Paylocity currently has an average rating of “Moderate Buy” and an average price target of $183.14.

Paylocity Stock Down 7.2%

Shares of PCTY stock opened at $117.85 on Friday. 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 has a 52-week low of $113.70 and a 52-week high of $223.80. The company’s 50 day moving average is $145.27 and its 200 day moving average is $156.69.

Paylocity (NASDAQ:PCTY) last posted its 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. Paylocity had a return on equity of 23.03% and a net margin of 14.19%.The company had revenue of $416.13 million during the quarter, compared to analyst estimates of $408.37 million. During the same quarter in the prior year, the business earned $1.52 earnings per share. Paylocity’s revenue was up 10.4% on a year-over-year basis. Analysts anticipate that Paylocity will post 4.36 EPS for the current fiscal year.

Insider Transactions at Paylocity

In other Paylocity news, CFO Ryan Glenn sold 1,737 shares of the firm’s stock in a transaction on Wednesday, November 19th. The shares were 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 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 the SEC website. Insiders own 19.40% of the company’s stock.

Institutional Trading of Paylocity

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Millennium Management LLC raised its stake in shares of Paylocity by 97.7% in the third quarter. Millennium Management LLC now owns 748,803 shares of the software maker’s stock worth $119,262,000 after purchasing an additional 369,975 shares during the last quarter. Alyeska Investment Group L.P. acquired a new stake in Paylocity during the 3rd quarter valued at approximately $104,657,000. Dimensional Fund Advisors LP boosted its holdings in shares of Paylocity by 14.2% in the 3rd quarter. Dimensional Fund Advisors LP now owns 616,747 shares of the software maker’s stock valued at $98,237,000 after acquiring an additional 76,603 shares during the last quarter. JPMorgan Chase & Co. raised its holdings in shares of Paylocity by 22.1% during the third quarter. JPMorgan Chase & Co. now owns 555,393 shares of the software maker’s stock worth $88,459,000 after purchasing an additional 100,400 shares during the last quarter. Finally, Qube Research & Technologies Ltd lifted its position in Paylocity by 61.3% during the third quarter. Qube Research & Technologies Ltd now owns 552,313 shares of the software maker’s stock valued at $87,967,000 after purchasing an additional 209,897 shares during the period. Institutional investors and hedge funds own 94.76% of the company’s stock.

More Paylocity News

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.