Jefferies Financial Group Forecasts Strong Price Appreciation for Paycom Software (NYSE:PAYC) Stock

Key Points

• Jefferies raised Paycom Software’s price target from $160 to $300 while maintaining a “hold” rating, implying 15.29% upside from the prior close.
• Analyst sentiment remains mixed: Paycom has a consensus “Hold” rating and an average price target of $242.64, based on five Buy, ten Hold, and one Sell recommendation.
• Paycom’s latest quarterly results exceeded expectations, with adjusted earnings of $2.78 per share versus the $2.38 consensus and revenue of $531.2 million, up 9.8% year over year.

Paycom Software (NYSE:PAYC - Get Free Report) had its target price boosted by Jefferies Financial Group from $160.00 to $300.00 in a research report issued to clients and investors on Tuesday, Benzinga reports. The brokerage currently has a "hold" rating on the software maker's stock. Jefferies Financial Group's price target indicates a potential upside of 15.29% from the stock's previous close.

A number of other research analysts have also weighed in on the company. Cantor Fitzgerald raised their target price on Paycom Software from $135.00 to $195.00 and gave the company a "neutral" rating in a report on Thursday, August 6th. Wall Street Zen lowered Paycom Software from a "buy" rating to a "hold" rating in a research report on Sunday, September 6th. KeyCorp raised their price objective on Paycom Software from $270.00 to $280.00 and gave the company an "overweight" rating in a research note on Monday, September 21st. BMO Capital Markets lifted their price objective on shares of Paycom Software from $145.00 to $208.00 and gave the stock a "market perform" rating in a report on Thursday, August 6th. Finally, Bank of America initiated coverage on shares of Paycom Software in a research note on Tuesday, September 29th. They issued an "underperform" rating and a $200.00 target price for the company. Five equities research analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, Paycom Software currently has an average rating of "Hold" and a consensus price target of $242.64.

Paycom Software Stock Down 3.0%

PAYC stock traded down $8.04 during midday trading on Tuesday, reaching $260.21. 343,795 shares of the company's stock traded hands, compared to its average volume of 1,172,310. The company has a quick ratio of 1.07, a current ratio of 1.07 and a debt-to-equity ratio of 1.57. The firm's fifty day moving average price is $231.44 and its 200-day moving average price is $161.48. Paycom Software has a 52 week low of $104.90 and a 52 week high of $275.22. The company has a market cap of $11.73 billion, a price-to-earnings ratio of 27.63, a P/E/G ratio of 1.47 and a beta of 0.82.

Paycom Software (NYSE:PAYC - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The software maker reported $2.78 earnings per share for the quarter, beating analysts' consensus estimates of $2.38 by $0.40. The firm had revenue of $531.20 million for the quarter, compared to analyst estimates of $513.12 million. Paycom Software had a net margin of 22.78% and a return on equity of 37.06%. The business's quarterly revenue was up 9.8% compared to the same quarter last year. During the same period last year, the firm earned $2.06 earnings per share. As a group, sell-side analysts forecast that Paycom Software will post 10.80 earnings per share for the current fiscal year.

Insider Buying and Selling at Paycom Software

In other Paycom Software news, insider Shane Hadlock sold 2,577 shares of the firm's stock in a transaction on Thursday, August 27th. The stock was sold at an average price of $237.60, for a total value of $612,295.20. Following the completion of the sale, the insider directly owned 70,152 shares of the company's stock, valued at $16,668,115.20. This trade represents a 3.54% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Company insiders own 13.20% of the company's stock.

Hedge Funds Weigh In On Paycom Software

A number of institutional investors have recently made changes to their positions in the stock. Archford Capital Strategies LLC boosted its position in shares of Paycom Software by 1.1% during the second quarter. Archford Capital Strategies LLC now owns 4,684 shares of the software maker's stock valued at $589,000 after buying an additional 49 shares during the period. CX Institutional grew its stake in shares of Paycom Software by 4.7% during the third quarter. CX Institutional now owns 1,399 shares of the software maker's stock valued at $304,000 after buying an additional 63 shares during the last quarter. Versant Capital Management Inc raised its holdings in shares of Paycom Software by 2.6% in the third quarter. Versant Capital Management Inc now owns 2,689 shares of the software maker's stock worth $585,000 after buying an additional 69 shares during the period. Signaturefd LLC raised its holdings in shares of Paycom Software by 3.4% in the third quarter. Signaturefd LLC now owns 2,547 shares of the software maker's stock worth $554,000 after buying an additional 83 shares during the period. Finally, Elevation Wealth Partners LLC lifted its stake in shares of Paycom Software by 76.5% during the 3rd quarter. Elevation Wealth Partners LLC now owns 233 shares of the software maker's stock worth $51,000 after acquiring an additional 101 shares during the last quarter. Institutional investors own 87.77% of the company's stock.

About Paycom Software

Paycom Software, Inc is a provider of cloud-based human capital management (HCM) software designed to help businesses manage employee-related processes through a unified platform. Its solutions support payroll, human resources, talent acquisition and management, time and labor management, compliance, and employee engagement.

The company's software is intended to allow employers and employees to enter and manage workforce information within a single system. Its offerings include payroll processing, benefits administration, expense management, scheduling, performance management, learning, and recruiting tools.

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