PCTY Should I Buy
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0.000(0.000%)
At close0.000(0.000%)Aft-market
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Not a good buy right now. PCTY is in a confirmed downtrend (bearish moving-average stack and worsening MACD) and is trading below near-term support (~133.6) with the next support around ~129.5. With no Intellectia buy signals today and earnings approaching (2026-02-05), the risk of near-term downside/whipsaw is higher than the reward for an impatient entry.
Trend is bearish. Moving averages are stacked negatively (SMA_200 > SMA_20 > SMA_5), signaling persistent downside momentum. MACD histogram is negative (-0.947) and expanding lower, confirming weakening momentum rather than stabilization. RSI_6 is 21.7 (oversold/washed-out), which can precede a short bounce, but oversold alone is not a buy signal when MACD is still deteriorating. Key levels: Pivot ~140.38 (major reclaim level to improve structure); resistance R1 ~147.11. Price (132.15 pre-market) is below S1 ~133.64, increasing the odds of a test of S2 ~129.48 if buyers don’t step in quickly.
points to more bullish longer-term positioning.
with risk of a move toward S2 (~129.5). Near-term options flow is defensive (volume put/call 1.25). Latest quarter profitability metrics softened (net income and EPS down YoY), which can keep multiple compression pressure on application/software names. No supportive news flow in the past week to provide an immediate upside catalyst.
Latest quarter: 2026/Q1. Revenue grew to $408.17M (+12.46% YoY), showing the core top-line trend remains healthy. Profitability was slightly weaker: net income $47.99M (-3.19% YoY) and EPS $0.86 (-2.27% YoY), indicating margin/expense pressure despite growth. Gross margin improved modestly to 68.55% (+0.32% YoY). Overall: solid growth, but earnings leverage is not currently expanding, which is consistent with the stock’s weak tape.
Recent analyst trend is mixed but still net-positive. Multiple firms maintained/initiated Buy/Outperform/Overweight ratings with targets mostly in the ~$180–$245 range (BTIG $180 Buy; Guggenheim upgraded to Buy $180; TD Cowen Buy with targets raised/cut over time; BMO Outperform; Cantor Overweight; JMP Outperform). Offsetting that, Stephens recently lowered its target to $160 and kept Equal Weight (more cautious). Wall Street pros: (Pros) expectation for sentiment recovery, potential for beat-and-raise cadence, product/integration upside, and capital return support. (Cons) multiple compression risk in software, growth/ex-float sensitivity to employment/macro, and recent profitability not showing clear acceleration.
