Paycom Software (NYSE:PAYC) Stock Price Target Raised at Guggenheim

Key Points

• Guggenheim raised Paycom Software’s price target to $300 from $225 and maintained a “buy” rating, implying roughly 9.17% upside from the reported share price.
• Paycom shares rose 0.8% to $274.80, near their one-year high, after the company reported quarterly EPS of $2.78 and revenue of $531.2 million, both above analyst expectations.
• Analyst opinion remains mixed: five analysts rate the stock a buy, 10 rate it a hold and one rates it a sell, resulting in a consensus “hold” rating and $225.14 target price.

Paycom Software (NYSE:PAYC - Get Free Report) had its price target boosted by equities researchers at Guggenheim from $225.00 to $300.00 in a research report issued on Friday, Benzinga reports. The brokerage presently has a "buy" rating on the software maker's stock. Guggenheim's price objective suggests a potential upside of 9.17% from the company's current price.

PAYC has been the topic of several other research reports. KeyCorp lifted their price objective on Paycom Software from $270.00 to $280.00 and gave the company an "overweight" rating in a report on Monday, September 21st. Stifel Nicolaus boosted their price objective on Paycom Software from $120.00 to $200.00 and gave the company a "hold" rating in a research report on Thursday, August 6th. BTIG Research increased their target price on Paycom Software from $160.00 to $230.00 and gave the stock a "buy" rating in a research note on Thursday, August 6th. Barclays raised 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. Finally, Zacks Research lowered shares of Paycom Software from a "strong-buy" rating to a "hold" rating in a research note on Monday, October 5th. Five investment analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $225.14.

Paycom Software Trading Up 0.8%

PAYC stock traded up $2.19 during midday trading on Friday, hitting $274.80. 87,705 shares of the company's stock were exchanged, compared to its average volume of 1,177,000. The stock's fifty day moving average price is $230.58 and its 200-day moving average price is $172.91. 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 $12.39 billion, a PE ratio of 29.20, a price-to-earnings-growth ratio of 1.40 and a beta of 0.82. Paycom Software has a one year low of $104.90 and a one year high of $274.29.

Paycom Software (NYSE:PAYC - Get Free Report) last posted its 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 during the quarter, compared to analysts' expectations of $513.12 million. During the same period in the previous year, the firm earned $2.06 earnings per share. The company's revenue was up 9.8% on a year-over-year basis. Research analysts predict that Paycom Software will post 10.80 earnings per share for the current fiscal year.

Insider Activity

In other Paycom Software news, insider Shane Hadlock sold 241 shares of Paycom Software stock in a transaction dated 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 owned 69,911 shares of the company's stock, valued at $16,783,533.77. This trade represents a 0.34% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. 13.20% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the company. BlackRock Inc. acquired a new stake in Paycom Software in the 2nd quarter valued at approximately $632,460,000. Bank of New York Mellon Corp acquired a new position in Paycom Software during the 2nd quarter worth approximately $42,858,000. Equity Investment Corp acquired a new position in Paycom Software during the 2nd quarter worth approximately $37,085,000. Bank of America Corp DE acquired a new position in Paycom Software during the 2nd quarter worth approximately $34,146,000. Finally, Reinhart Partners LLC. grew its stake in shares of Paycom Software by 20.1% during 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 in the last quarter. 87.77% of the stock is owned by institutional investors and hedge funds.

About Paycom Software

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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