6 Analysts Assess Paylocity Holding: What You Need To Know

Throughout the last three months, 6 analysts have evaluated Paylocity Holding PCTY, offering a diverse set of opinions from bullish to bearish.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $188.33, along with a high estimate of $200.00 and a low estimate of $178.00. Witnessing a positive shift, the current average has risen by 1.69% from the previous average price target of $185.20.

Decoding Analyst Ratings: A Detailed Look

In examining recent analyst actions, we gain insights into how financial experts perceive Paylocity Holding. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Paylocity Holding. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Paylocity Holding compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Paylocity Holding's stock. This comparison reveals trends in analysts' expectations over time.

For valuable insights into Paylocity Holding's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Paylocity Holding analyst ratings.

Delving into Paylocity Holding's Background

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.

Paylocity Holding's Financial Performance

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

Revenue Growth: Paylocity Holding's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2024, the company achieved a revenue growth rate of approximately 18.07%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Industrials sector.

Net Margin: Paylocity Holding's net margin is impressive, surpassing industry averages. With a net margin of 21.26%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Paylocity Holding's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 8.18%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Paylocity Holding's ROA stands out, surpassing industry averages. With an impressive ROA of 1.81%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: With a below-average debt-to-equity ratio of 0.05, Paylocity Holding adopts a prudent financial strategy, indicating a balanced approach to debt management.

What Are 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 also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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