Paycom Software (NYSE:PAYC) Stock Gets Price Target Boost from Barclays

Key Points

• Barclays raised its Paycom Software price target from $210 to $250 while maintaining an “equal weight” rating, implying 6.11% potential upside from the prior close.
• Analyst sentiment remains cautious overall: Paycom has a consensus “Hold” rating and an average price target of $219.79, based on five Buy, ten Hold, and one Sell rating.
• Paycom’s latest quarterly results exceeded expectations, with earnings of $2.78 per share versus $2.38 expected and revenue of $531.2 million, up 9.8% year over year.

Paycom Software (NYSE:PAYC - Get Free Report) had its price target increased by stock analysts at Barclays from $210.00 to $250.00 in a report released on Tuesday, Benzinga reports. The brokerage presently has an "equal weight" rating on the software maker's stock. Barclays's price objective points to a potential upside of 6.11% from the company's previous close.

A number of other analysts also recently commented on PAYC. Stifel Nicolaus raised their price objective on Paycom Software from $120.00 to $200.00 and gave the stock a "hold" rating in a research report on Thursday, August 6th. Guggenheim boosted their price objective on Paycom Software from $180.00 to $225.00 and gave the company a "buy" rating in a research report on Thursday, August 6th. Bank of America assumed coverage on Paycom Software in a research note on Tuesday, September 29th. They issued an "underperform" rating and a $200.00 target price for the company. BMO Capital Markets raised their target price on Paycom Software from $145.00 to $208.00 and gave the stock a "market perform" rating in a research report on Thursday, August 6th. Finally, Cantor Fitzgerald lifted their price target on shares of Paycom Software from $135.00 to $195.00 and gave the stock a "neutral" rating in a research note on Thursday, August 6th. Five research analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $219.79.

Paycom Software Stock Performance

Shares of PAYC traded up $0.58 during trading hours on Tuesday, reaching $235.59. 82,973 shares of the company traded hands, compared to its average volume of 1,198,302. 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 stock's fifty day moving average is $222.82 and its 200 day moving average is $165.44. Paycom Software has a 1-year low of $104.90 and a 1-year high of $244.98. The stock has a market cap of $10.62 billion, a P/E ratio of 25.05, a price-to-earnings-growth ratio of 1.26 and a beta of 0.82.

Paycom Software (NYSE:PAYC - Get Free Report) last released its earnings results on Wednesday, August 5th. The software maker reported $2.78 earnings per share for the quarter, topping 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 business had revenue of $531.20 million for the quarter, compared to the consensus estimate of $513.12 million. During the same period last year, the business earned $2.06 earnings per share. The firm's revenue for the quarter was up 9.8% compared to the same quarter last year. Equities research analysts anticipate that Paycom Software will post 10.64 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Paycom Software news, insider Shane Hadlock sold 241 shares of the company's stock in a transaction on Friday, August 28th. The stock was sold at an average price of $240.07, for a total value of $57,856.87. Following the sale, the insider directly owned 69,911 shares in the company, valued at $16,783,533.77. This represents a 0.34% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. 13.20% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Paycom Software

Several institutional investors and hedge funds have recently made changes to their positions in the company. Archford Capital Strategies LLC grew its stake 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 purchasing an additional 49 shares during the last quarter. CX Institutional increased its holdings in shares of Paycom Software by 4.7% in the third quarter. CX Institutional now owns 1,399 shares of the software maker's stock valued at $304,000 after purchasing an additional 63 shares in the last quarter. Versant Capital Management Inc raised its position in Paycom Software by 2.6% in the 3rd quarter. Versant Capital Management Inc now owns 2,689 shares of the software maker's stock worth $585,000 after purchasing an additional 69 shares during the last quarter. Elevation Wealth Partners LLC raised its position in Paycom Software by 76.5% in the 3rd quarter. Elevation Wealth Partners LLC now owns 233 shares of the software maker's stock worth $51,000 after purchasing an additional 101 shares during the last quarter. Finally, EverSource Wealth Advisors LLC lifted its holdings in Paycom Software by 32.1% during the 1st quarter. EverSource Wealth Advisors LLC now owns 424 shares of the software maker's stock worth $52,000 after buying an additional 103 shares in the last quarter. Institutional investors and hedge funds 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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