Paylocity combines a perfect four-quarter earnings beat streak with an attractive forward valuation of 12.3x and a wide economic moat, but near-term momentum remains deeply negative with the stock trading below its 200-day moving average on falling volume, warranting patience before adding exposure.
Thesis pillars
- Moat Fcf Quality→Stable
- Earnings Beat Quality↓Deteriorating
- Valuation Analyst Upside↓Deteriorating
- +1 more pillar — see the Why tab for full reasoning
Paylocity Holding Corporation (PCTY) Stock Analysis
Momentum Cont setup · Catalyst-Driven edge
Technology · Software - Application
Wait for pullback to $114.89. At $125.27 the A.R:R is 0.7:1 — below the 1.5:1 minimum for BUY_NOW. Engine's entry $114.89 (Atr Pullback Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum.
Paylocity provides cloud-based HCM, payroll, and spend management software to approximately 41,650 U.S. clients as of June 30, 2025, serving organizations that on average have over 150 employees. Revenue of $1,595.2 million in fiscal 2025 comes from SaaS subscriptions priced by... Read more
Wait for pullback to $114.89. At $125.27 the A.R:R is 0.7:1 — below the 1.5:1 minimum for BUY_NOW. Engine's entry $114.89 (Atr Pullback Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum. Chart setup: Trend continuation, RSI 66, MACD bullish. Maintain position. Not compelling to add more. | News modifier +2 (HOLD_IF_HOLDING → STRONG_BUY_WAIT) Score 6.3/10, moderate confidence.
Passes 6/10 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: moderate.
About Paylocity Holding Corporation
About Paylocity Holding Corporation
Paylocity Holding Corporation generated $1,595.2 million in fiscal 2025 revenue, a 14% increase over $1,402.5 million in fiscal 2024, serving approximately 41,650 U.S. clients with an average of over 150 employees per client as of June 30, 2025. All clients are domestically based, and the company estimates its target addressable market at about 1.3 million U.S. businesses employing approximately 73 million people. Annual revenue retention exceeded 92% in each of fiscal years 2023, 2024, and 2025.
Paylocity earns revenue through SaaS subscriptions priced based on the solutions purchased, the number of client employees, and the timing of services rendered. The product suite spans Payroll and Tax Services, Human Resources, Time and Attendance, Talent management (Recruiting, Onboarding, and Performance), Benefits administration, and a finance module covering Expense Management, AP Automation, and Corporate Cards. More than 25% of new client revenue in fiscal 2025 originated from a referral network of 401(k) advisors, benefits administrators, insurance brokers, and third-party administrators. The HCM and payroll market is highly competitive; the 10-K names Automatic Data Processing, Dayforce, Paychex, Paycom Software, and Ultimate Kronos Group as primary competitors, noting that several have greater name recognition and significantly greater resources. No single client accounted for more than 1% of revenues in any of the three fiscal years ended June 30, 2025.
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Paylocity's competitive risk profile includes both larger incumbents and potential AI-native entrants. The 10-K specifically warns that if current competitors are acquired by parties with greater resources, those acquirers may sustain price competition — including price concessions and delayed payment terms — that Paylocity cannot match. Separately, if new AI or machine learning technologies allow competitors to deliver HCM solutions at lower prices or more conveniently, the company's market position may be weakened. The non-deterministic nature of generative AI outputs is cited as a reliability risk: if AI features fail or produce inaccurate results, client dissatisfaction and reputational damage could follow.
See also: Technology · Software - Application
From Paylocity Holding Corporation's most recent 10-K filing, extracted June 11, 2026.
Recent developments
updated 2026-07-26Recent Developments — Paylocity Holding Corporation
Latest news
- NEWS Paylocity Holding Corp (PCTY) Shares Surge 5.5% -- What GF Score of 74 Tells Investors - GuruFocus — GuruFocus positive
- NEWS Is Paylocity (PCTY) stock struggling to move higher | Q1 2026: Profit Exceeds Views - AI Stock Signals - Newser — Newser positive
- NEWS PCTY Maintained by UBS -- Price Target Raised to $128 - GuruFocus — GuruFocus positive
- NEWS UBS Adjusts Price Target on Paylocity to $128 From $122, Maintains Neutral Rating - marketscreener.com — marketscreener.com neutral
- NEWS Barclays Remains a Hold on Paylocity (PCTY) - The Globe and Mail — The Globe and Mail neutral
Generated 2026-07-26T06:37:02Z.
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Rating Breakdown
1 floor-breaker
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
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Verdict History
Frequently Asked Questions
Wait for pullback to $114.89. At $125.27 the A.R:R is 0.7:1 — below the 1.5:1 minimum for BUY_NOW. Engine's entry $114.89 (Atr Pullback Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum. Chart setup: Trend continuation, RSI 66, MACD bullish. Maintain position. Not compelling to add more. | News modifier +2 (HOLD_IF_HOLDING → STRONG_BUY_WAIT) Target $137.94 (+10.1%), stop $104.34 (−20.1%), A.R:R 0.7:1. Score 6.3/10, moderate confidence.
Take-profit target: $137.94 (+10.1% upside). Target $137.94 (+10.1%), stop $104.34 (−20.1%), A.R:R 0.7:1. Stop-loss: $104.34.
Paylocity Holding Corporation trades at a P/E of 25.8 (forward 14.4). TrendMatrix value score: 6.3/10. Verdict: Buy (Wait for Entry).
27 analysts cover PCTY with a consensus score of 4.3/5. Average price target: $153.
What does Paylocity Holding Corporation do?Paylocity provides cloud-based HCM, payroll, and spend management software to approximately 41,650 U.S. clients as of...
Paylocity provides cloud-based HCM, payroll, and spend management software to approximately 41,650 U.S. clients as of June 30, 2025, serving organizations that on average have over 150 employees. Revenue of $1,595.2 million in fiscal 2025 comes from SaaS subscriptions priced by the number of solutions purchased and client employee count, with more than 25% of new client revenue generated by referrals.