Dayforce (NYSE:DAY) Shares Gap Down Following Weak Earnings

Dayforce Inc (NYSE:DAY)’s stock price gapped down before the market opened on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $71.74, but opened at $67.03. Dayforce shares last traded at $65.61, with a volume of 376,341 shares traded.

The company reported $0.37 earnings per share for the quarter, missing the consensus estimate of $0.46 by ($0.09). Dayforce had a return on equity of 6.69% and a net margin of 3.12%.

Analyst Ratings Changes

DAY has been the topic of a number of analyst reports. Jefferies Financial Group upped their target price on Dayforce from $55.00 to $65.00 and gave the company a “hold” rating in a research note on Tuesday, October 22nd. Stifel Nicolaus boosted their price target on Dayforce from $82.00 to $90.00 and gave the company a “buy” rating in a report on Wednesday, December 18th. Needham & Company LLC boosted their price target on Dayforce from $82.00 to $95.00 and gave the company a “buy” rating in a report on Wednesday, November 13th. Scotiabank started coverage on Dayforce in a report on Monday, November 18th. They issued a “sector perform” rating and a $75.00 price target for the company. Finally, Piper Sandler reiterated an “overweight” rating and issued a $94.00 price target (up previously from $82.00) on shares of Dayforce in a report on Wednesday, November 13th. Seven research analysts have rated the stock with a hold rating and eight have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $80.07.

Insider Activity

In other news, COO Stephen H. Holdridge sold 1,000 shares of the stock in a transaction on Friday, November 15th. The stock was sold at an average price of $76.26, for a total transaction of $76,260.00. Following the completion of the sale, the chief operating officer now owns 121,022 shares in the company, valued at approximately $9,229,137.72. This represents a 0.82 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO David D. Ossip sold 858,697 shares of the company’s stock in a transaction on Tuesday, November 26th. The shares were sold at an average price of $79.55, for a total value of $68,309,346.35. Following the completion of the transaction, the chief executive officer now directly owns 794,527 shares in the company, valued at approximately $63,204,622.85. The trade was a 51.94 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 860,697 shares of company stock worth $68,456,936. Insiders own 4.90% of the company’s stock.

Institutional Investors Weigh In On Dayforce

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Proficio Capital Partners LLC acquired a new stake in Dayforce during the 4th quarter worth about $1,314,000. Fjarde AP Fonden Fourth Swedish National Pension Fund lifted its stake in Dayforce by 4.4% in the 4th quarter. Fjarde AP Fonden Fourth Swedish National Pension Fund now owns 33,254 shares of the company’s stock valued at $2,416,000 after buying an additional 1,400 shares in the last quarter. ING Groep NV lifted its stake in Dayforce by 307.4% in the 4th quarter. ING Groep NV now owns 20,142 shares of the company’s stock valued at $1,463,000 after buying an additional 15,198 shares in the last quarter. CIBC Asset Management Inc lifted its stake in Dayforce by 4.3% in the 4th quarter. CIBC Asset Management Inc now owns 24,406 shares of the company’s stock valued at $1,773,000 after buying an additional 995 shares in the last quarter. Finally, CFC Planning Co LLC purchased a new position in Dayforce in the 4th quarter valued at about $244,000.

Dayforce Price Performance

The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.15 and a current ratio of 1.15. The stock’s 50 day moving average is $74.07 and its two-hundred day moving average is $66.26. The stock has a market capitalization of $10.25 billion, a PE ratio of 198.84, a price-to-earnings-growth ratio of 2.59 and a beta of 1.26.

Dayforce Company Profile

Dayforce Inc, together with its subsidiaries, operates as a human capital management (HCM) software company in the United States, Canada, and internationally. It offers Dayforce, a cloud HCM platform that provides human resources, payroll and tax, workforce management, wallet, benefits, and talent intelligence functionalities; and Powerpay, a cloud HR and payroll solution for the small business market.