Paycom Software (NYSE:PAYC) Rating Lowered to "Hold" at Zacks Research

Key Points

• Zacks Research downgraded Paycom Software to “Hold” from “Strong Buy,” while the broader analyst consensus is also “Hold” with an average price target of $216.93.
• Paycom reported stronger-than-expected quarterly results, posting $2.78 in EPS and $531.2 million in revenue, with revenue rising 9.8% year over year.
• PAYC shares opened at $222.30, near the consensus target, while institutional investors own 87.77% of the stock; an insider recently sold shares worth approximately $612,295.

Paycom Software (NYSE:PAYC - Get Free Report) was downgraded by equities research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research report issued to clients and investors on Monday, Zacks reports.

PAYC has been the subject of several other research reports. BMO Capital Markets raised their price target on Paycom Software from $145.00 to $208.00 and gave the company a "market perform" rating in a report on Thursday, August 6th. Cantor Fitzgerald increased their target price on Paycom Software from $135.00 to $195.00 and gave the company a "neutral" rating in a research report on Thursday, August 6th. Citigroup raised their target price on shares of Paycom Software from $136.00 to $194.00 and gave the company a "neutral" rating in a report on Friday, August 7th. UBS Group boosted their price target on shares of Paycom Software from $205.00 to $285.00 and gave the stock a "buy" rating in a research report on Tuesday, September 1st. Finally, Bank of America assumed coverage on shares of Paycom Software in a research report on Tuesday, September 29th. They set an "underperform" rating and a $200.00 price objective for the company. 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 company's stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $216.93.

Paycom Software Stock Performance

Shares of NYSE PAYC opened at $222.30 on Monday. The company has a debt-to-equity ratio of 1.57, a quick ratio of 1.07 and a current ratio of 1.07. The company has a market cap of $10.02 billion, a P/E ratio of 23.62, a P/E/G ratio of 1.23 and a beta of 0.82. The firm's fifty day moving average is $217.67 and its two-hundred day moving average is $162.44. Paycom Software has a 52-week low of $104.90 and a 52-week high of $244.98.

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

Insiders Place Their Bets

In other news, insider Shane Hadlock sold 2,577 shares of the stock in a transaction 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 sale, the insider owned 70,152 shares of the company's stock, valued at approximately $16,668,115.20. This represents a 3.54% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. 13.20% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. BlackRock Inc. bought a new stake in shares of Paycom Software during the 2nd quarter worth approximately $632,460,000. Reinhart Partners LLC. grew its position 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 valued at $153,320,000 after acquiring an additional 204,191 shares during the last quarter. Goldman Sachs Group Inc. increased its stake in Paycom Software by 5.2% in the fourth quarter. Goldman Sachs Group Inc. now owns 552,470 shares of the software maker's stock worth $88,042,000 after purchasing an additional 27,069 shares during the period. Dimensional Fund Advisors LP lifted its position in shares of Paycom Software by 10.1% during the first quarter. Dimensional Fund Advisors LP now owns 538,376 shares of the software maker's stock worth $65,435,000 after purchasing an additional 49,460 shares during the last quarter. Finally, River Road Asset Management LLC boosted its stake in shares of Paycom Software by 481.9% during the fourth quarter. River Road Asset Management LLC now owns 392,403 shares of the software maker's stock valued at $62,533,000 after purchasing an additional 324,970 shares during the period. Hedge funds and other institutional investors own 87.77% of the company's stock.

Paycom Software Company Profile

Paycom Software, Inc develops and provides cloud-based human capital management (HCM) software for businesses. Its platform is designed to help employers manage payroll and other workforce processes through a unified system, reducing the need for separate applications and manual data entry.

The company's products and services include payroll processing, tax management, time and labor management, talent acquisition, onboarding, talent management, employee benefits administration, expense management, and workforce analytics.

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