Paycom Software (NYSE:PAYC) Cut to "Hold" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Paycom Software to “Hold” from “Buy.” The broader analyst consensus is also “Hold,” with 15 analysts assigning Hold ratings and an average price target of $214.23.
• Paycom’s latest quarterly results exceeded expectations, with EPS of $2.78 versus the $2.38 consensus and revenue of $531.2 million versus $513.12 million expected. Revenue increased 9.8% year over year.
• PAYC shares opened at $231.81 after falling 3.6%; the stock trades near its 52-week high of $244.98. Institutional investors own 87.77% of the company, while an insider recently sold shares worth about $612,000.

Paycom Software (NYSE:PAYC - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a report released on Sunday, Wall Street Zen reports.

PAYC has been the topic of a number of other research reports. TD Cowen raised their price target on shares of Paycom Software from $149.00 to $244.00 and gave the company a "buy" rating in a report on Thursday, August 6th. Cantor Fitzgerald boosted their price objective on shares of Paycom Software from $135.00 to $195.00 and gave the company a "neutral" rating in a report on Thursday, August 6th. Barclays increased their price objective on shares of Paycom Software from $154.00 to $210.00 and gave the company an "equal weight" rating in a research report on Thursday, August 6th. Stifel Nicolaus raised their target price on shares of Paycom Software from $120.00 to $200.00 and gave the stock a "hold" rating in a report on Thursday, August 6th. Finally, Citigroup lifted their target price on shares of Paycom Software from $136.00 to $194.00 and gave the stock a "neutral" rating in a research report on Friday, August 7th. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and nine have assigned a Hold rating to the company's stock. According to MarketBeat.com, Paycom Software presently has an average rating of "Hold" and an average target price of $214.23.

Paycom Software Stock Down 3.6%

PAYC stock opened at $231.81 on Friday. Paycom Software has a 1-year low of $104.90 and a 1-year high of $244.98. The business has a fifty day moving average price of $182.32 and a 200-day moving average price of $147.45. The company has a debt-to-equity ratio of 1.57, a current ratio of 1.07 and a quick ratio of 1.07. The stock has a market capitalization of $10.45 billion, a P/E ratio of 24.63, a P/E/G ratio of 1.29 and a beta of 0.78.

Paycom Software (NYSE:PAYC - Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The software maker reported $2.78 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.38 by $0.40. Paycom Software had a return on equity of 37.06% and a net margin of 22.78%.The firm had revenue of $531.20 million for the quarter, compared to the consensus estimate of $513.12 million. During the same period in the prior year, the company posted $2.06 earnings per share. The company's quarterly revenue was up 9.8% on a year-over-year basis. Equities analysts forecast that Paycom Software will post 10.65 earnings per share for the current fiscal year.

Insider Buying and Selling at Paycom Software

In other news, insider Shane Hadlock sold 2,577 shares of the stock in a transaction that occurred on Thursday, August 27th. The shares were sold at an average price of $237.60, for a total value of $612,295.20. Following the transaction, the insider owned 70,152 shares in the company, valued at $16,668,115.20. This represents a 3.54% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 13.20% of the stock is owned by company insiders.

Institutional Trading of Paycom Software

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Fluent Financial LLC purchased a new position in Paycom Software during the second quarter valued at $2,439,000. Principal Financial Group Inc. increased its position in Paycom Software by 290.5% in the first quarter. Principal Financial Group Inc. now owns 243,762 shares of the software maker's stock worth $29,627,000 after buying an additional 181,346 shares in the last quarter. Northwestern Mutual Wealth Management Co. raised its stake in shares of Paycom Software by 1,151.4% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 170,854 shares of the software maker's stock worth $27,227,000 after buying an additional 157,201 shares during the period. Janus Henderson Group PLC raised its stake in shares of Paycom Software by 467.2% in the first quarter. Janus Henderson Group PLC now owns 23,200 shares of the software maker's stock worth $2,819,000 after buying an additional 19,110 shares during the period. Finally, Virtu Financial LLC purchased a new position in shares of Paycom Software during the 4th quarter valued at about $912,000. 87.77% of the stock is owned by hedge funds and other institutional investors.

About Paycom Software

Paycom Software, Inc NYSE: PAYC is a cloud-based human capital management (HCM) software provider that delivers an end-to-end solution for human resources, payroll, talent acquisition, time and labor management, and talent management. Its single-database platform enables organizations to process payroll, track time, administer benefits, and manage recruiting and employee development through a unified system. Paycom's software is designed to streamline administrative tasks, improve data accuracy, and provide real-time reporting and analytics to support strategic HR decisions.

The company's core offerings include payroll processing with built-in tax compliance, employee self-service functionality, automated time tracking, and customizable talent acquisition tools that allow employers to create and post job requisitions, screen candidates, and conduct onboarding electronically.

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