Paylocity Holding Corporation (PCTY) - Stock Analysis

Last updated: Aug 30, 2026

Research Idea

Research content for general circulation. Not individualized advice. Methodology & Disclosures

Strongest near-term momentum setup: stock rose about 26.6% over 21 trading days and closed at a fresh 21-day high on 2026-07-20. Fiscal Q3 showed a beat at the top end of guidance, raised full-year revenue and EBITDA guidance, and a new $1B repurchase program.

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Idea window: 7/20/2026 – 7/27/2026Sector: Technology

AI Analyst Overview

Last Price
$154.43
Market Cap
$8.27B
1D Return
-0.11%
YTD Return
+1.27%

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Valuation Metrics

P/E
30.9
P/B
6.8
P/S
4.7
EV/EBITDA
16.7
Div Yield
—

Fundamental Analysis

7.0

Key Financial Insights: • Strong Cash Flow • Tight Liquidity • Premium Valuation PCTY combines strong profitability and free-cash-flow generation with modest funded debt, but tight liquidity, elevated total liabilities, and premium valuation multiples warrant caution.

CashFlow
ValuationRisk

Price Behavior

7.0

Key Price Behavior Insights: • Sustained uptrend • $152 support • $158 resistance Support Level: $152; deeper support $145–$148 Resistance Level: $158 Over the last month, PCTY gained about 15% to near $158, maintaining bullish momentum above $152 support but facing resistance at $158 and profit-taking risk if support breaks.

Bullish
Volatile

Sentiment & News

7.0

Key News Insights: • Earnings Beat • AI Expansion • Golden Cross Paylocity's earnings beat, AI-led growth, bullish analyst support and golden-cross signal strengthen its outlook despite peer-margin gaps and insider selling.

Paylocity
AIGrowth
AI

AI Summary

7.0
Positive

PCTY is now an execution-dependent installed-base monetization story: investors should own it only if cross-selling and AI/adjacent-service adoption can sustain revenue-per-client growth and justify its premium multiple, while monitoring whether growth slips toward 9%–10% without corresponding margin gains.

CrossSell
ValuationRisk
Execution
AI summary updated 4 days ago

Description

Paylocity Holding Corporation provides cloud-based human capital management and payroll software for U.S. employers, combining payroll and tax processing with time and attendance, scheduling, and employee self-service tools. Its platform also includes talent and benefits administration, employee engagement features, analytics and reporting, plus implementation, training and regulatory support. The company sells through direct representatives to organizations across multiple sectors and is headquartered in Schaumburg, Illinois, with origins dating to 1997.

Idea History

DateCloseTickerCompanySummaryStatusP/L
Jul 20Jul 27PCTYPaylocity Holding Corporation
Strongest near-term momentum setup: stock rose about 26.6% over 21 trading days and closed at a fresh 21-day high on 2026-07-20. Fiscal Q3 showed a beat at the top end of guidance, raised full-year revenue and EBITDA guidance, and a new $1B repurchase program.
Closed+2.3%
Research content for educational purposes only. Not investment advice. All decisions are your responsibility.