Paycom Software (NYSE:PAYC) Given New $305.00 Price Target at BTIG Research

Key Points

• BTIG Research raised Paycom Software’s price target to $305 from $230 and maintained a “buy” rating, implying 11.06% potential upside from the reported current price.
• Analyst sentiment remains mixed: Paycom has five Buy, ten Hold, and one Sell rating, resulting in an overall “Hold” consensus and an average price target of $230.50.
• Paycom’s latest quarterly results exceeded expectations, with adjusted earnings of $2.78 per share and revenue of $531.2 million, up 9.8% year over year.

Paycom Software (NYSE:PAYC - Get Free Report) had its target price hoisted by analysts at BTIG Research from $230.00 to $305.00 in a research note issued to investors on Monday, Benzinga reports. The firm presently has a "buy" rating on the software maker's stock. BTIG Research's price target suggests a potential upside of 11.06% from the company's current price.

A number of other equities analysts have also recently issued reports on PAYC. Zacks Research cut shares of Paycom Software from a "strong-buy" rating to a "hold" rating in a research report on Monday, October 5th. Barclays increased their target price on shares of Paycom Software from $210.00 to $250.00 and gave the stock an "equal weight" rating in a report on Tuesday, October 13th. Bank of America initiated coverage on Paycom Software in a research note on Tuesday, September 29th. They issued an "underperform" rating and a $200.00 target price on the stock. Cantor Fitzgerald boosted their price target on Paycom Software from $135.00 to $195.00 and gave the company a "neutral" rating in a report on Thursday, August 6th. Finally, JPMorgan Chase & Co. upped their price target on Paycom Software from $140.00 to $264.00 and gave the company a "neutral" rating in a research report on Tuesday, August 25th. Five equities research analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of "Hold" and an average target price of $230.50.

Paycom Software Price Performance

Shares of Paycom Software stock opened at $274.64 on Monday. The company has a debt-to-equity ratio of 1.57, a current ratio of 1.07 and a quick ratio of 1.07. Paycom Software has a one year low of $104.90 and a one year high of $275.22. The business's 50 day simple moving average is $231.72 and its two-hundred day simple moving average is $173.97. The stock has a market capitalization of $12.38 billion, a P/E ratio of 29.19, a price-to-earnings-growth 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. 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 during the quarter, compared to analyst estimates of $513.12 million. During the same quarter in the prior year, the firm posted $2.06 earnings per share. The business's quarterly revenue was up 9.8% compared to the same quarter last year. Analysts forecast that Paycom Software will post 10.80 EPS for the current year.

Insider Buying and Selling

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

Institutional Investors Weigh In On Paycom Software

Hedge funds have recently made changes to their positions in the company. BlackRock Inc. purchased a new stake in shares of Paycom Software during the second quarter valued at approximately $632,460,000. Bank of New York Mellon Corp purchased a new position in Paycom Software in the 2nd quarter worth approximately $42,858,000. Equity Investment Corp purchased a new position in Paycom Software in the 2nd quarter worth approximately $37,085,000. Bank of America Corp DE purchased a new position in Paycom Software in the 2nd quarter worth approximately $34,146,000. Finally, Reinhart Partners LLC. raised its holdings in Paycom Software by 20.1% in the 2nd quarter. Reinhart Partners LLC. now owns 1,219,906 shares of the software maker's stock worth $153,320,000 after acquiring an additional 204,191 shares during the last quarter. 87.77% of the stock is currently owned by institutional investors.

Paycom Software Company Profile

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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