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PCTY · NASDAQ · STOCK

Paylocity (PCTY) Stock Analysis

Technology Updated October 10, 2026
$154.01
52W $92.99 – $161.93
64/100
$8.24B
30.9
0.45
AI Committee Verdict
Buy
64/100
Conviction: Moderate · 67% agreement · 6 analysts
+0.4%
-0.4%
1.00:1
Moderate

Is PCTY Bullish or Bearish?

Bullish. Innellis AI committee rates Paylocity (PCTY) Buy with a composite score of 64/100 , based on 6 analysts with 67% agreement. Last updated October 10, 2026.

What Would Change This View

Upgrade to Strong Buy
Requires a committee score of 75.0 — +11.37 from today. Applies on the first day at or above the line; upgrades are never dampened.
Downgrade to Watch
Requires the score to fall below 55.0 — -8.63 from today. The band boundary is 60.0, but a one-step downgrade must clear a further margin first. A score oscillating around the line should not change the rating every night.

Executive Summary

The committee is genuinely divided. Risk Analyst sees a compelling case — low leverage (debt-to-equity 0.07) -- balance sheet can absorb a shock. Portfolio Manager remains cautious — sector concentration is already high (hhi 2796.97). This disagreement is itself the signal — the setup is not clean in either direction.

Bull & Bear Case

Bull Case
  • ROE of 23.4% shows genuine earnings power backing the valuation — Value
  • 5 consecutive earnings beats -- consistent execution — Growth
  • Price structure making higher highs and higher lows — Technical
  • MACD histogram positive -- bullish momentum — Technical
  • Trend and market structure agree -- coherent bullish picture — Technical
  • Low leverage (debt-to-equity 0.07) -- balance sheet can absorb a shock — Risk
Bear Case
  • P/E of 30.1 is moderate-to-rich — Value
  • Price-to-book of 4.6x prices in significant intangible value — Value
  • Growth rate is decelerating quarter over quarter -- the trend line matters more than the level — Growth
  • RSI at 75 is in overbought territory — Technical
  • Price trading above the upper Bollinger Band -- stretched — Technical
Both cases are generated from quantitative data signals, not qualitative or forward-looking judgement. They summarise what the numbers say today.
Price History (6M)

AI Investment Committee

Committee Consensus As of October 10, 2026
Overall Committee Score
64/100
Agreement
67%
Analysts
6
Conviction
Moderate
Sector Rank
Top 12%
of 287 Technology peers
Value Analyst neutral
54 / 100 · High confidence
Fair value -- neither a bargain nor obviously overpriced
+ ROE of 23.4% shows genuine earnings power backing the valuation
− P/E of 30.1 is moderate-to-rich
Growth Analyst bullish
60 / 100 · High confidence
Strong, accelerating growth with consistent execution
+ 5 consecutive earnings beats -- consistent execution
− Growth rate is decelerating quarter over quarter -- the trend line matters more than the level
Technical Analyst neutral
58 / 100 · High confidence
Mixed or range-bound price action
+ Price structure making higher highs and higher lows
− RSI at 75 is in overbought territory
Risk Analyst bullish
80 / 100 · Low confidence
Risk profile is manageable -- leverage, volatility, and event exposure all look contained
+ Low leverage (debt-to-equity 0.07) -- balance sheet can absorb a shock
Macro Analyst bullish
65 / 100 · Low confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
News Analyst bullish
65 / 100 · Low confidence
News flow and recent filings/analyst actions are net positive
+ News sentiment is positive (+0.22 across 9 articles, 14d)
Portfolio Manager bearish
30 / 100 · Moderate confidence
The existing book itself argues for caution here, independent of how good this specific stock looks
− Sector concentration is already high (HHI 2796.97)
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Investment Thesis Evolution

Committee score moved marginally from 63.5 to 63.6.

Analyst-level changes:
  • News Analyst: +1 bullish signal(s).
  • Technical Analyst: +1 bearish signal(s).
  • Value Analyst: +1 bearish signal(s).

Comparing 2026-10-09 to 2026-10-10 (1 day apart).

Technical Analysis

RSI (14)
74.5
Overbought
MACD Histogram
0.984
Bullish Momentum
Trend Direction
Uptrend
Weekly: Sideways
Market Structure
Hh Hl
Support
$153.38
Resistance
$154.64
Bollinger %B
1.13
Above Upper Band
Price vs Moving Averages
EMA 9
$148.52 Above
EMA 21
$147.08 Above
EMA 50
$143.51 Above
EMA 200
$135.11 Above

Fundamental Analysis

Valuation
45
Growth
62
Profitability
83
Financial Health
62
Cash Flow
70
Valuation
P/E Ratio 30.9×
P/B Ratio 6.82×
PEG Ratio 1.38
Dividend Yield 0.00%
52W High $161.93
52W Low $92.99
Quality & Growth
ROE 2208.4%
ROA 552.2%
Gross Margin 6918.6%
Operating Margin 2179.1%
Revenue Growth YoY —
Debt / Equity 0.10
AI Fundamental Assessment
P/E ratio of 30.9 (rich relative to a 15-40x range); Price-to-book of 6.8x; PEG ratio of 1.4 (under 1.0 suggests growth is undervalued relative to price); Return on equity of 22.1%; Return on assets of 5.5%; Net margin of 15.2%; Gross margin of 69.2%; Current ratio of 1.09 (tight short-term liquidity); Debt-to-equity of 0.10; Free cash flow per share is positive (8.28); Most recent quarter beat estimates by 11.7%; 5 consecutive earnings beats; EPS growth decelerating (+56.2% -> -36.3% QoQ); Average YoY EPS growth of 17.9%; Analyst estimates falling over recent quarters
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