Is Paylocity Holding Corporation (PCTY) a Strong Long Term Bet?

Alger Capital, an investment management company, released its “Alger Mid Cap Focus Fund” third quarter investor letter. A copy of the same can be downloaded here. Mid-cap growth stocks declined 0.65% for the quarter, as measured by the Russel Midcap Growth Index. Class Z shares of the fund underperformed the Russel Midcap Growth Index in the quarter. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Alger Capital highlighted stocks like Paylocity Holding Corporation (NASDAQ:PCTY) in the Q3 2022 investor letter. Headquartered in Schaumburg, Illinois, Paylocity Holding Corporation (NASDAQ:PCTY) is a software company. On December 13, 2022, Paylocity Holding Corporation (NASDAQ:PCTY) stock closed at $211.38 per share. One-month return of Paylocity Holding Corporation (NASDAQ:PCTY) was -6.85%, and its shares lost 7.21% of their value over the last 52 weeks. Paylocity Holding Corporation (NASDAQ:PCTY) has a market capitalization of $11.768 billion.

Alger Capital made the following comment about Paylocity Holding Corporation (NASDAQ:PCTY) in its Q3 2022 investor letter:

“Paylocity Holding Corporation (NASDAQ:PCTY) is a leading software-as-a-service company that provides cloud-based payroll and human capital management in underserved small to mid-size markets. Most new sales activity covers employers with 50 to 500 employees.

Shares outperformed during the quarter as the company reported strong fiscal fourth-quarter earnings, which were generated by improving product demand. Sales momentum was also strong with a 28% year-over-year increase during the period, exceeding consensus expectations. In another positive development, the time required to establish initial meetings, receive decisions from potential clients and complete implementations have all returned to normal following previous challenges resulting from the Covid-19 pandemic.”

Software

Paylocity Holding Corporation (NASDAQ:PCTY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held Paylocity Holding Corporation (NASDAQ:PCTY) at the end of the third quarter, which was 24 in the previous quarter.

We discussed Paylocity Holding Corporation (NASDAQ:PCTY) in another article and shared ClearBridge Investments’ views on the company. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.