Dayforce (NYSE:DAY) Shares Gap Down on Disappointing Earnings

Shares of Dayforce Inc (NYSE:DAY) 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 trading hands.

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

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on the stock. Piper Sandler reaffirmed an “overweight” rating and set a $83.00 price target (down from $94.00) on shares of Dayforce in a report on Wednesday. Needham & Company LLC reaffirmed a “buy” rating and set a $95.00 price target on shares of Dayforce in a report on Thursday. KeyCorp lifted their price target on shares of Dayforce from $80.00 to $92.00 and gave the company an “overweight” rating in a report on Wednesday, November 13th. BMO Capital Markets boosted their target price on shares of Dayforce from $80.00 to $90.00 and gave the stock an “outperform” rating in a report on Wednesday, November 13th. Finally, Scotiabank reduced their target price on shares of Dayforce from $75.00 to $72.00 and set a “sector perform” rating on the stock in a report on Thursday. Seven investment analysts have rated the stock with a hold rating and eight have given a buy rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $78.64.

Insider Activity at Dayforce

In related news, CEO David D. Ossip sold 858,697 shares of the business’s stock in a transaction on Tuesday, November 26th. The shares were sold at an average price of $79.55, for a total transaction of $68,309,346.35. Following the transaction, the chief executive officer now owns 794,527 shares in the company, valued at $63,204,622.85. The trade was a 51.94 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, COO Stephen H. Holdridge sold 1,000 shares of the business’s stock in a transaction on Wednesday, January 15th. The shares were sold at an average price of $71.33, for a total transaction of $71,330.00. Following the transaction, the chief operating officer now owns 119,022 shares in the company, valued at $8,489,839.26. The trade was a 0.83 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 860,697 shares of company stock worth $68,456,936 in the last quarter. Company insiders own 4.90% of the company’s stock.

Institutional Trading of Dayforce

A number of hedge funds and other institutional investors have recently bought and sold shares of DAY. Creative Planning bought a new stake in Dayforce during the 2nd quarter valued at $276,000. SG Americas Securities LLC bought a new stake in Dayforce during the 3rd quarter valued at $442,000. Handelsbanken Fonder AB grew its stake in shares of Dayforce by 23.5% in the 3rd quarter. Handelsbanken Fonder AB now owns 37,800 shares of the company’s stock worth $2,315,000 after acquiring an additional 7,200 shares in the last quarter. Czech National Bank bought a new stake in shares of Dayforce in the 3rd quarter worth $1,973,000. Finally, GAMMA Investing LLC bought a new stake in shares of Dayforce in the 3rd quarter worth $118,000.

Dayforce Stock 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 has a market cap of $10.34 billion, a P/E ratio of 198.78, a price-to-earnings-growth ratio of 2.59 and a beta of 1.26. The company’s 50 day moving average price is $73.63 and its 200-day moving average price is $66.39.

About Dayforce

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.