Why Paylocity Holding Corporation (PCTY) Shares Retreated -4.36% Today

What just happened? Paylocity Holding Corporation (NASDAQ:PCTY) stock value has plummeted by nearly -4.36% or (-4.45 points) to $97.72 from its previous close of $102.17. Does this decline mean it the best stock to buy right now? The shares seem to have an active trading volume day with a reported 156872 contracts so far this session. PCTY shares had a relatively better volume day versus average trading capacity of 316.4 thousand shares, but with a 33.56 million float and a 13.69% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for PCTY stock indicates that the average analyst price target is $102.86 per share. This means the stock has a potential increase of 5.26% from where the PCTY share price has been trading recently which is between $98.94 and $103.2542. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $97.

The shorts are running away from Paylocity Holding Corporation (PCTY) stock. The latest set of short interest data was released on 15 May 2019, and the numbers show a drop in short interest in PCTY shares. While short interest still represents only 2.57% of PCTY’s float, the number of shares shorted have fallen by -10896. The number of shares shorted fell to 864053 shares, down from 874949 shares during the preceding fortnight. With average daily trading volumes at 326197 shares, days to cover increased to about 2.408311 days. The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “Paylocity (PCTY) Up 5% Since Last Earnings Report: Can It Continue?” and dated June 01, 2019.

During the recent trading session for Paylocity Holding Corporation (NASDAQ:PCTY), the company witnessed their stock rise $3.18 over a week and surge $4.27 from the price 20 days ago. When compared to their established 52-week high of $103.8, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 05/28/19. The recent low of $53.46 stood for a -5.86% since 12/24/18, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 1.86 is also allocated to the stock. Since the beta is greater than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.

Looking at the current readings for Paylocity Holding Corporation, the two-week RSI stands at 51.26. This figure suggests that PCTY stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current PCTY readings is similarly very revealing as it has a stochastic reading of 73.02% at this stage. This figure means that PCTY share price today is being oversold.

Technical chart claims that Paylocity Holding Corporation (PCTY) would settle between $103.97/share to $105.77/share level. However, if the stock price goes below the $99.66 mark, then the market for Paylocity Holding Corporation becomes much weaker. If that happens, the stock price might even plunge as low as $97.14 for its downside target. The stock is currently in the green zone of MACD, with the indicator reading 1.9. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.

Analysts at KeyBanc Capital Markets, assumed coverage of PCTY assigning Overweight rating, according to their opinion released on April 17. Needham analysts again handed out a Buy recommendation to Paylocity Holding Corporation (NASDAQ:PCTY) stock but they lifted target price for the shares in a flash note issued to investors on February 07. The target price has been raised from $80 to $100. Analysts at BofA/Merrill are sticking to their Buy stance. However, on February 07, they lifted price target for these shares to $89 from $80.

PCTY equity has an average rating of 1.94, with the figure leaning towards a bullish end. 16 analysts who tracked the company were contacted by Reuters. Amongst them, 5 rated the stock as a hold while the remaining 11 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while no rated it as a sell. 11 analysts rated Paylocity Holding Corporation (NASDAQ:PCTY) as a buy or a strong buy while not a single analyst advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.

Moving on, PCTY stock price is currently trading at 62.34X forward 12-month Consensus EPS estimates, and its P/S ratio is 12.19 while for the average stock in the same group, the multiple is 9.65. Paylocity Holding Corporation current P/E ratio of 134.98 means it is trading at a discount against its industry’s 144.56. In the past 5 years, this ratio for the stock has been fluctuating between 83.68 and 363.53.

Paylocity Holding Corporation (PCTY)’s current-quarter revenues are projected to climb by nearly 21.66% to hit $117540, based on current Zacks Consensus Estimate. The firm’s full-year revenues are expected to expand by over 23.12% from $377530 to a noteworthy $464800. At the other end of the current quarter income statement, Paylocity Holding Corporation is expected to see its adjusted earnings surge by roughly 127.27% to hit $0.25 per share. For the fiscal year, PCTY’s earnings are projected to climb by roughly 72% to hit $1.29 per share.