Finance Halo
Company Overview
Dayforce, Inc. (DAY) is a global provider of human capital management (HCM) solutions. The company offers a comprehensive cloud platform that addresses the needs of human resources, payroll, talent, and workforce management. DAY operates in the human resources technology industry, holding a significant position with its all-in-one solution for a diverse range of businesses.
Price Action Analysis
The daily chart displays a period of consolidation following a prior uptrend. Several attempts to break above the $69.50-$70.00 resistance zone have been met with selling pressure, forming tight trading ranges. Volume on these attempts has been mixed, lacking significant confirmation of a breakout. The recent price action shows a strong bullish candle on high volume, indicating a potential breakout attempt from the consolidation pattern.
The weekly chart reveals a longer-term uptrend that has seen significant gains over the past two years, peaking around $80 before entering a corrective phase. The stock has since consolidated in the $50-$60 range for an extended period, followed by a gradual ascent and a period of tight consolidation in the $68-$70 range on the daily chart. The recent surge in volume on the daily chart suggests increased investor interest and a potential shift in momentum.
News & Catalysts
Recent News and Analyst Updates
- Dayforce Acquired by Thoma Bravo: Dayforce, Inc. was acquired by Thoma Bravo for approximately $12.3 billion, leading to its delisting from the NYSE and Toronto Stock Exchange. This significant event marks the end of its public trading life. (Source: Various, February 4, 2026)
- New Brand Campaign and AI Initiatives: Dayforce launched a new brand campaign, 'Tiny Briefcase,' on February 18, 2026, emphasizing simplification through its AI-powered platform. Additionally, the company achieved ISO 42001 for trustworthy AI on February 10, 2026, signaling a commitment to responsible AI development. These initiatives, while forward-looking, may not have had a direct impact on recent price action due to the impending privatization.
- Q3 2025 Earnings Miss and Analyst Downgrades: Dayforce reported Q3 2025 EPS of $0.37, missing estimates, and saw a decline in gross and operating margins. This led to some analyst price target adjustments, with TD Cowen lowering its target to $67 in late 2025. This news likely contributed to a more cautious sentiment and capped upside potential prior to the acquisition announcement. (Source: Various, October 29, 2025 onwards)
Fondamental analysis
Given the recent acquisition of Dayforce, Inc. by Thoma Bravo, traditional fundamental analysis for publicly traded shares is no longer applicable as the stock has been delisted. The data below reflects the state of the company prior to this event.
Key Financial Metrics (Pre-Acquisition)
| Metric | Value | Notes |
|---|---|---|
| Revenue (Latest Reported) | ~$1.3B | Q3 2025 (YoY +9.5%) |
| EPS (Latest Reported) | $0.37 | Q3 2025 (Missed estimates) |
| Recurring Revenue Growth | +14% | Q3 2025 |
| Professional Services Growth | +22.5% | Q3 2025 |
| Gross Margin | Decreasing | Q3 2025 |
| Operating Margin (Non-GAAP) | Decreasing | Q3 2025 |
| Analyst Consensus | Hold | Late 2025 |
| Consensus Price Target | ~$69.07 | Late 2025 (High: $90, Low: $52) |
Key Takeaways
- Revenue Growth: The company demonstrated consistent revenue growth, particularly from its core Dayforce platform.
- Profitability Concerns: Recent quarterly results indicated pressure on margins, leading to an earnings miss.
- Analyst Sentiment: Prior to the acquisition, the analyst community held a mixed to neutral stance, with a majority recommending a "Hold" rating.
- Valuation: The consensus price target in late 2025 hovered around the $69 mark, suggesting that the market perceived fair value in that range, aligning with the trading levels observed around that time.
Market & Sentiment Context
Market Context: The broader software and HR technology sectors have experienced volatility, influenced by macroeconomic factors and shifts in investor appetite for growth stocks. While the sector has generally seen strong long-term demand for cloud-based solutions, companies like Dayforce faced scrutiny regarding profitability and path to sustainable growth, especially in a higher interest rate environment.
Catalysts: The primary catalyst for Dayforce's recent history as a public entity was the acquisition by Thoma Bravo. Prior to this, potential catalysts could have included strong earnings reports, successful product innovations (like their AI advancements), or strategic partnerships. However, the Q3 2025 earnings miss likely dampened positive sentiment.
Investor Sentiment: Leading up to the acquisition, investor sentiment appeared cautious. The earnings miss and margin pressures likely contributed to a "wait-and-see" attitude, reflected in the mixed analyst ratings and the consolidation pattern observed on the daily chart. The high volume on the recent strong daily candle, however, could indicate a surge of buying interest, possibly in anticipation of the deal closing or a potential short squeeze. Given the company is now private, evaluating current sentiment through typical volume/price action analysis is not possible for public investors.
Investment Outlook
As Dayforce has been acquired and is no longer a publicly traded entity, a traditional investment outlook is not applicable. For investors who held the stock prior to the acquisition, the outcome was the privatization of the company, with shareholders receiving the agreed-upon acquisition price.
For historical analysis purposes, if the stock were still trading and the recent breakout on high volume were to hold, the outlook would be cautiously optimistic. The pattern suggested a potential continuation of the upward move, targeting previous resistance levels. However, the news of the acquisition fundamentally changes the investment landscape for this ticker.
Key Buy/Sell Levels
The current price for DAY is $69.86.
Resistance Levels
- $70.00 - $70.50: This zone represents the immediate resistance level, previously tested multiple times during the consolidation phase. The breakout candle on high volume is currently pushing against this level.
- Distance from current price: This level is being tested currently.
Support Levels
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$68.90 - $69.20: This area served as the upper boundary of the recent consolidation and now acts as the first level of support. The strong volume on the breakout candle suggests this level may have held as support.
- Distance from current price: This level was tested in the prior trading period.
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$68.00: A more significant support level, aligning with the lower end of the recent trading range.
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$50 - $60: This wider zone represents a major support area seen on the weekly chart, from which the stock began its ascent before the most recent consolidation.
Given the acquisition, these levels are historical references rather than actionable trading zones for new investments in the public market.
Summary & Takeaways
Dayforce, Inc. (DAY) has recently undergone a significant corporate event with its acquisition by Thoma Bravo, rendering it a private entity. Prior to this, the stock exhibited a clear consolidation pattern on the daily chart, with a notable breakout attempt occurring on high volume.
Historically, the stock showed strong upward momentum on the weekly chart over the past two years, followed by a period of consolidation. Fundamental analysis prior to the acquisition indicated steady revenue growth but recent margin pressures and an earnings miss led to a cautious analyst outlook.
The key takeaway for current market participants is that DAY is no longer a publicly traded stock. The technical levels and fundamental data discussed pertain to its historical performance as a public company.