Stephen Holdridge, President and COO of Dayforce, Inc. (NYSE:DAY), recently sold 1,000 shares of the company's common stock, according to a recent filing with the Securities and Exchange Commission. The shares were sold at a price of $77 each, totaling $77,000. Following this transaction, Holdridge holds 122,022 shares directly.
The transaction was executed as part of a pre-established trading plan under Rule 10b5-1, which allows company insiders to set up a predetermined schedule for buying or selling stock. This provides an opportunity for insiders to diversify their holdings while avoiding potential accusations of insider trading.
In addition to his current holdings, Holdridge has a variety of performance units and options that could potentially convert into additional shares of common stock, contingent upon meeting certain performance metrics. These units and options are set to expire at various dates, with the earliest being February 24, 2025.
In other recent news, Dayforce Inc. reported a 16.6% year-over-year increase in total revenue for the third quarter, surpassing consensus expectations. This growth was partially fueled by $45.6 million in float revenue. The company's adjusted EBITDA for the quarter was $126 million, slightly above consensus estimates. Dayforce also announced amendments to its corporate bylaws and a change in its fiscal year end, as well as a plan to repurchase up to $500 million of its common stock. In leadership changes, Stephen H. Holdridge was appointed as President and Chief Operating Officer, while Christopher R. Armstrong transitioned to the role of Executive Vice President, Chief Customer Officer.
Financial firms have been active in their analyses of Dayforce, with TD (TSX:TD) Cowen maintaining a Hold rating and a consistent price target of $74.00. BMO (TSX:BMO) Capital Markets increased the price target to $80, while JPMorgan (NYSE:JPM) raised its price target for Dayforce to $63. KeyBanc initiated coverage on Dayforce, setting an Overweight rating and a price target of $70.00.
These recent developments highlight the company's financial trajectory and strategic management, as well as the potential for a re-rating of the stock based on its financial performance. The company's ability to meet its long-term goals by the fiscal year 34 is seen as a potential factor that could influence future expectations and stock performance. However, the Hold rating from TD Cowen implies that the firm advises investors to maintain their current positions in Dayforce shares without making additional investments.
InvestingPro Insights
As Stephen Holdridge, President and COO of Dayforce, Inc. (NYSE:DAY), recently sold shares, it's worth examining some key financial metrics and insights from InvestingPro to provide context for this insider transaction.
Dayforce has shown impressive financial performance, with revenue growing by 16.85% over the last twelve months to $1.69 billion. The company boasts a robust gross profit margin of 49.65%, reflecting strong pricing power and operational efficiency. This aligns with an InvestingPro Tip highlighting Dayforce's "impressive gross profit margins."
Despite the recent insider sale, Dayforce's stock has demonstrated significant momentum. InvestingPro data reveals a 33.36% price return over the past month and a substantial 55.28% return over the last three months. This strong performance is corroborated by an InvestingPro Tip noting a "significant return over the last week."
However, investors should be aware that the stock is trading at a high P/E ratio of 239.82, which may indicate an elevated valuation. This is consistent with another InvestingPro Tip suggesting that Dayforce is "trading at a high earnings multiple."
For those interested in a more comprehensive analysis, InvestingPro offers 18 additional tips for Dayforce, providing a deeper understanding of the company's financial health and market position.
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