Paylocity Holding Corporation (PCTY) - Stock Analysis

Last updated: Sep 6, 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
$152.25
Market Cap
$8.15B
1D Return
-1.41%
YTD Return
-0.16%

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Valuation Metrics

P/E
30.5
P/B
6.7
P/S
4.6
EV/EBITDA
16.5
Div Yield
—

Fundamental Analysis

7.0

Key Financial Insights: • Strong Cash Conversion • Modest Debt Load • Softening Margins PCTY delivers strong profitability and cash flow with modest debt, but elevated valuation and softer quarterly margins warrant caution.

StrongCashFlow
PremiumValuation

Price Behavior

5.0

Key Price Behavior Insights: • Rally Reversal • Key Support • Resistance Test Support Level: $152.00; $145.00–$147.00 Resistance Level: $156.00–$160.00 PCTY's last-month rally faded into a pullback to $152.25, so watch $152 support and $156–$160 resistance for the next directional signal.

PCTY
TechnicalSetup

Sentiment & News

6.0

Key News Insights: • Earnings Momentum • Institutional Buying • Insider Sales Paylocity shows strong growth, favorable analyst and institutional support, and bullish technical momentum, though insider sales and below-peer profitability warrant monitoring.

Growth
Momentum
AI

AI Summary

6.0
Neutral

PCTY is a cash-generative, mature HCM platform whose premium valuation now depends on proving that AI, recruiting, retirement, and finance/IT cross-sell can reaccelerate high-single-digit growth and sustain margins; investors should await measurable adoption and recurring-revenue uplift before treating product expansion as a new growth engine.

CashFlow
GrowthDeceleration
AIExecution
AI summary updated today

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.