In the preceding three months, 7 analysts have released ratings for Dayforce (NYSE:DAY), presenting a wide array of perspectives from bullish to bearish.
The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 2 | 2 | 3 | 0 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 0 | 0 | 1 | 0 | 0 |
| 2M Ago | 2 | 1 | 2 | 0 | 0 |
| 3M Ago | 0 | 0 | 0 | 0 | 0 |
The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $72.86, a high estimate of $82.00, and a low estimate of $62.00. This current average has decreased by 6.79% from the previous average price target of $78.17.
Exploring Analyst Ratings: An In-Depth Overview
An in-depth analysis of recent analyst actions unveils 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 |
|---|---|---|---|---|---|
| Daniel Jester | BMO Capital | Maintains | Outperform | $75.00 | $75.00 |
| Arvind Ramnani | Piper Sandler | Maintains | Neutral | $68.00 | $68.00 |
| Daniel Jester | BMO Capital | Lowers | Outperform | $75.00 | $82.00 |
| Arvind Ramnani | Mizuho | Lowers | Buy | $80.00 | $95.00 |
| 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 | - |
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: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Dayforce compared to the broader market.
- Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Dayforce's stock. This comparison reveals trends in analysts' expectations over time.
Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Dayforce's market standing. Stay informed and make data-driven decisions with our Ratings Table.
Stay up to date on Dayforce analyst ratings.
All You Need to Know About 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.
Dayforce: A Financial Overview
Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.
Revenue Growth: Over the 3 months period, Dayforce showcased positive performance, achieving a revenue growth rate of 16.43% as of 31 March, 2024. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Industrials sector, the company excelled with a growth rate higher than the average among peers.
Net Margin: Dayforce's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 1.65%, the company may face hurdles in effective cost management.
Return on Equity (ROE): Dayforce's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 0.29%, the company may face hurdles in achieving optimal financial performance.
Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.07%, the company may need to address challenges in generating satisfactory returns from its assets.
Debt Management: Dayforce's debt-to-equity ratio is below the industry average. With a ratio of 0.51, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
How Are Analyst Ratings Determined?
Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.
In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.
This article was generated by Benzinga's automated content engine and reviewed by an editor.