Unveiling 9 Analyst Insights On Paylocity Holding

In the preceding three months, 9 analysts have released ratings for Paylocity Holding PCTY, presenting a wide array of perspectives from bullish to bearish.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Analysts have recently evaluated Paylocity Holding and provided 12-month price targets. The average target is $199.89, accompanied by a high estimate of $250.00 and a low estimate of $160.00. This current average represents a 22.65% decrease from the previous average price target of $258.43.

Breaking Down Analyst Ratings: A Detailed Examination

A clear picture of Paylocity Holding's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Paylocity Holding. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Paylocity Holding compared to the broader market.
• Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Paylocity Holding's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Paylocity Holding analyst ratings.

Discovering Paylocity Holding: A Closer Look

Paylocity is a provider of payroll and human capital management, or HCM, solutions servicing small- to midsize clients in the United States. The company was founded in 1997 and targets businesses with 10 to 5,000 employees and services about 36,000 clients as of fiscal 2023. Alongside core payroll services, Paylocity offers HCM solutions such as time and attendance and recruiting software, as well workplace collaboration and communication tools.

Understanding the Numbers: Paylocity Holding's Finances

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

Revenue Growth: Over the 3 months period, Paylocity Holding showcased positive performance, achieving a revenue growth rate of 25.39% as of 30 September, 2023. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Industrials sector.

Net Margin: Paylocity Holding's net margin excels beyond industry benchmarks, reaching 10.87%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Paylocity Holding's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 3.98%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Paylocity Holding's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.94%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Paylocity Holding's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.08.

The Basics of Analyst Ratings

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

This article was generated by Benzinga's automated content engine and reviewed by an editor.