Dayforce stock jumped early Monday amid a report that private equity firm Thoma Bravo is in talks to acquire the software company.
On the stock market today, Dayforce stock popped 24% to nearly 66. As of Friday's market close, Dayforce stock had retreated 27% in 2025.
Bloomberg reported that Thoma Bravo was in talks with Dayforce on Sunday.
"We believe it would be logical for Dayforce to go private here given shares are not getting credit for its improving fundamentals," said TD Cowen analyst Jared Levine in a report.
Dayforce Stock: Crowded Market
Dayforce, formerly Ceridian, competes in the human capital management (HCM) market vs. Automatic Data Processing, Paychex, Workday, Paycom Software, Paylocity Holding and others.
At Jefferies, analyst Samad Samana said in a report: "We would not be surprised if Dayforce chose to sell given the lack of appreciation for the stock in the public markets. It has been tough sledding for Dayforce the last few years post-COVID highs, not unlike the rest of the HR/payroll coverage universe."
The company garners most revenue from its Dayforce business, having moved on from payroll service bureau-type services. Growth comes largely from taking away customers of ADP and Paychex.
At BMO Capital Markets, analyst Daniel Jester said in a report: "Dayforce shares have lagged and traded at a discount to peers amid a recent moderation in growth. But recent bookings improvement and building opportunities in the large and global enterprise markets are drivers of future optimism with ongoing material margin improvement potential."
Coupa Connection At Thoma Bravo
He added: "News of potential interest is not surprising given the depressed trading multiple for Dayforce shares recently. For example, Dayforce former co-CEO Leigh Turner is the chief executive at Thoma Bravo holding Coupa."
Thoma Bravo in 2022 acquired software maker Coupa in a deal valued at $8 billion, including debt. The private equity firm has acquired a number of software makers.
Originally part of computer maker Control Data, Dayforce became a stand-alone company in 1992 and went private in 2007. The software maker held an initial public offering in 2018 and raised $462 million.
From a technical view, Dayforce stock holds a Composite Rating of 55 out of a best-possible 99, according to IBD Stock Checkup. IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
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