Paycom Software (NYSE:PAYC) Now Covered by Bank of America

Key Points

• Bank of America initiated coverage of Paycom Software with an “underperform” rating and a $200 price target, implying about 7.6% downside from the stock’s reported price of $216.44.
• Analyst sentiment is broadly cautious: Paycom has an average “hold” rating and a consensus price target of $213.93, with nine analysts rating it a hold and one assigning a sell rating.
• Paycom’s latest quarterly results exceeded expectations, with adjusted EPS of $2.78 versus the $2.38 consensus and revenue of $531.2 million, up 9.8% year over year.

Equities researchers at Bank of America assumed coverage on shares of Paycom Software (NYSE:PAYC - Get Free Report) in a research report issued to clients and investors on Tuesday. The brokerage set an "underperform" rating and a $200.00 price target on the software maker's stock. Bank of America's price objective points to a potential downside of 7.60% from the stock's current price.

Other equities research analysts have also issued research reports about the company. JPMorgan Chase & Co. lifted their price objective on Paycom Software from $140.00 to $264.00 and gave the company a "neutral" rating in a report on Tuesday, August 25th. Wall Street Zen cut Paycom Software from a "buy" rating to a "hold" rating in a report on Sunday, September 6th. Citigroup lifted their price target on Paycom Software from $136.00 to $194.00 and gave the company a "neutral" rating in a research note on Friday, August 7th. Cantor Fitzgerald upped their price objective on Paycom Software from $135.00 to $195.00 and gave the stock a "neutral" rating in a report on Thursday, August 6th. Finally, BMO Capital Markets raised their target price on Paycom Software from $145.00 to $208.00 and gave the company a "market perform" rating in a report on Thursday, August 6th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, nine have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $213.93.

Paycom Software Stock Performance

NYSE:PAYC traded down $4.14 during midday trading on Tuesday, reaching $216.44. The stock had a trading volume of 45,020 shares, compared to its average volume of 1,233,279. The firm has a fifty day simple moving average of $208.67 and a two-hundred day simple moving average of $158.38. Paycom Software has a 12-month low of $104.90 and a 12-month high of $244.98. 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 stock has a market cap of $9.75 billion, a P/E ratio of 22.96, a P/E/G ratio of 1.23 and a beta of 0.78.

Paycom Software (NYSE:PAYC - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The software maker reported $2.78 EPS for the quarter, topping analysts' consensus estimates of $2.38 by $0.40. The company had revenue of $531.20 million during the quarter, compared to the consensus estimate of $513.12 million. Paycom Software had a net margin of 22.78% and a return on equity of 37.06%. Paycom Software's quarterly revenue was up 9.8% on a year-over-year basis. During the same quarter in the prior year, the firm earned $2.06 EPS. On average, equities analysts expect that Paycom Software will post 10.64 EPS for the current year.

Insiders Place Their Bets

In other Paycom Software news, insider Shane Hadlock sold 2,577 shares of the company's 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 transaction, the insider directly owned 70,152 shares in the company, valued at approximately $16,668,115.20. This represents a 3.54% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders own 13.20% of the company's stock.

Institutional Trading of Paycom Software

A number of hedge funds have recently bought and sold shares of PAYC. Clearstead Advisors LLC grew its position in shares of Paycom Software by 140.3% in the fourth quarter. Clearstead Advisors LLC now owns 161 shares of the software maker's stock valued at $26,000 after purchasing an additional 94 shares during the period. Caitlin John LLC purchased a new stake in shares of Paycom Software during the 2nd quarter valued at $31,000. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new position in Paycom Software in the second quarter valued at $33,000. EFG International AG purchased a new position in shares of Paycom Software in the 2nd quarter worth about $36,000. Finally, Trust Co. of Vermont purchased a new stake in shares of Paycom Software during the 2nd quarter worth about $40,000. Institutional investors and hedge funds own 87.77% of the company's stock.

Paycom Software Company Profile

Paycom Software, Inc is a provider of cloud-based payroll and human capital management (HCM) software for businesses. Its platform is designed to help organizations manage employee data and payroll processes through a unified system, serving small, midsize and larger employers primarily in the United States.

The company's products and services include payroll processing, tax management, time and labor management, talent acquisition, onboarding, employee learning, performance management, compensation planning, benefits administration, expense management and compliance tools.

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