Conestoga Capital Advisors Sold Paylocity Holding Corp. (PCTY) in Q1

1 day ago 2

Soumya Eswaran

Wed, May 6, 2026 astatine 9:59 AM CDT 3 min read

Conestoga Capital Advisors, an plus absorption company, released its first-quarter 2026 capitalist letter. A transcript of the missive is disposable to download here. The archetypal 4th of 2026 started with optimism astir the home system and charismatic small-cap valuations, but it was affected by volatility owed to geopolitical unrest successful the Middle East and shifting expectations regarding involvement rates. This unrest drove up vigor prices and created a cautious planetary market. Energy, Basic Materials, and Industrials performed well, portion bundle companies faced challenges owed to AI disruption concerns. Market sensitivity to geopolitical events, vigor prices, and ostentation remains high. The Conestoga Smid Cap Composite fell 10.24% net-of-fees, underperforming the Russell 2500 Growth Index’s -3.52% return. The diminution was driven by antagonistic banal enactment and sector/industry-specific headwinds, notably wrong Technology, Industrials, and Health Care sectors. In addition, delight cheque the Strategy’s apical 5 holdings to cognize its champion picks successful 2026.

In its first-quarter 2026 capitalist letter, Conestoga Capital Advisors highlighted Paylocity Holding Corporation (NASDAQ:PCTY) arsenic a recently added position. Headquartered successful Schaumburg, Illinois, Paylocity Holding Corporation (NASDAQ:PCTY) is simply a bundle institution that provides cloud-based quality superior absorption and payroll bundle solutions. On May 5, 2026, Paylocity Holding Corporation (NASDAQ:PCTY) closed astatine $107.68 per share. One-month instrumentality of Paylocity Holding Corporation (NASDAQ:PCTY) was 5.14%, and its shares mislaid 41.35% implicit the past 52 weeks. Paylocity Holding Corporation (NASDAQ:PCTY) has a marketplace capitalization of $5.86 billion.

Conestoga Capital Advisors stated the pursuing regarding Paylocity Holding Corporation (NASDAQ:PCTY) successful its Q1 2026 capitalist letter:

"Paylocity Holding Corporation (NASDAQ:PCTY) provides cloud-based quality superior absorption and payroll software. We sold the presumption arsenic maturation has moderated and competitory dynamics wrong the HCM abstraction person intensified. While the institution continues to make coagulated results, we judge the risk-reward has go little charismatic fixed a much mature maturation illustration and expanding competition."

Paylocity Holding Corporation (NASDAQ:PCTY) is not connected our database of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 43 hedge money portfolios held Paylocity Holding Corporation (NASDAQ:PCTY) astatine the extremity of the 4th quarter, compared to 44 successful the erstwhile quarter. While we admit the imaginable of Paylocity Holding Corporation (NASDAQ:PCTY) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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