Paylocity's one-year target price raised by UBS amid increased institutional ownership

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Paylocity's one-year target price raised by UBS amid increased institutional ownership

UBS initiated coverage on cloud-based HR and payroll software provider Paylocity Holding (NASDAQ: PCTY ) on Tuesday, with a Neutral recommendation. The one-year price target for the company is set at $259.34, marking an 82.77% increase from its closing price of $141.89.

The projected annual revenue for Paylocity is $1,402MM, indicating a growth of 13.16%. Additionally, the company's non-GAAP EPS is forecasted to reach 4.98.

Institutional ownership in Paylocity has seen an uptick, with a 2.70% increase over the last quarter reported by 951 funds. Notably, major stakeholders such as Price T Rowe Associates, T. Rowe Price New Horizons Fund, T. Rowe Price Investment Management, Wasatch Advisors, and Vanguard Total Stock Market Index Fund Investor Shares continue to hold substantial shares in the company.

However, there has been a decrease in the average portfolio weight dedicated to PCTY, which fell by 12.47%. The shift suggests a diversification strategy among investors even as they maintain significant stakes in Paylocity.

InvestingPro Insights

InvestingPro's real-time data reveals that Paylocity Holding has a market cap of $8370.0M and a P/E ratio of 57.09. The company's revenue for the last twelve months as of Q1 2024 stands at $1238.9M, with a growth rate of 34.05%. The gross profit margin is also impressive at 69.12%.

Turning to InvestingPro Tips, Paylocity is noted for its high earnings quality, with free cash flow exceeding net income. The company also yields a high return on invested capital and holds more cash than debt on its balance sheet. Despite recent market turbulence, Paylocity is trading at a low P/E ratio relative to near-term earnings growth.

These insights, among many others, can be found on InvestingPro, which lists a total of 25 tips for PCTY. For those interested in a deeper understanding of the company's financial health and future prospects, InvestingPro is an invaluable resource.

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