Key Takeaways From Dayforce Analyst Ratings

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Dayforce DAY underwent analysis by 7 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 3 0 4 0 0
Last 30D 1 0 2 0 0
1M Ago 0 0 0 0 0
2M Ago 0 0 0 0 0
3M Ago 2 0 2 0 0

In the assessment of 12-month price targets, analysts unveil insights for Dayforce, presenting an average target of $75.0, a high estimate of $82.00, and a low estimate of $62.00. Witnessing a positive shift, the current average has risen by 1.01% from the previous average price target of $74.25.

Decoding Analyst Ratings: A Detailed Look

In examining recent analyst actions, we gain insights into how financial experts perceive Dayforce. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Raimo Lenschow Barclays Lowers Equal-Weight $62.00 $74.00
Arvind Ramnani Piper Sandler Lowers Neutral $68.00 $75.00
Scott Berg Needham Maintains Buy $82.00 -
Scott Berg Needham Maintains Buy $82.00 -
Raimo Lenschow Barclays Lowers Equal-Weight $74.00 $75.00
Scott Berg Needham Maintains Buy $82.00 -
Arvind Ramnani Piper Sandler Raises Neutral $75.00 $73.00

Key Insights:

  • Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Dayforce. This information provides a snapshot of how analysts perceive the current state of the company.
  • Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Dayforce compared to the broader market.
  • Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Dayforce's stock. This comparison reveals trends in analysts' expectations over time.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Dayforce's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Dayforce analyst ratings.

Unveiling the Story Behind Dayforce

Dayforce provides payroll and human capital management solutions targeting clients with 100-100,000 employees. Following the 2012 acquisition of Dayforce, Dayforce pivoted away from its legacy on-premises Bureau business to become a cloud HCM provider. As of fiscal 2022, about 80% of group revenue was derived from the flagship Dayforce platform geared toward enterprise clients. The remaining revenue is about evenly split between cloud platform Powerpay, targeting small businesses in Canada, and legacy Bureau products.

Financial Insights: Dayforce

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

Revenue Growth: Dayforce's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2023, the company achieved a revenue growth rate of approximately 18.92%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Industrials sector.

Net Margin: Dayforce's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 11.41%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Dayforce's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 1.95%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Dayforce's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 0.51%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.52.

The Basics of Analyst Ratings

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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