Paycom Software (NYSE:PAYC) Upgraded to "Buy" at Wall Street Zen

Key Points

• Wall Street Zen upgraded Paycom Software from “hold” to “buy,” although the broader analyst consensus remains “Hold,” with an average price target of $208.08.
• Paycom reported stronger-than-expected quarterly results, with EPS of $2.78 versus the $2.38 estimate and revenue of $531.2 million, up 9.8% year over year.
• Paycom shares opened at $239.00, near their 12-month high of $242.50, while institutional investors and hedge funds own approximately 87.77% of the stock.

Paycom Software (NYSE:PAYC - Get Free Report) was upgraded by equities researchers at Wall Street Zen from a "hold" rating to a "buy" rating in a research note issued on Saturday.

Other equities analysts have also issued reports about the stock. Cantor Fitzgerald upped their target price on shares of Paycom Software from $135.00 to $195.00 and gave the stock a "neutral" rating in a research report on Thursday, August 6th. Stifel Nicolaus boosted their price objective on shares of Paycom Software from $120.00 to $200.00 and gave the stock a "hold" rating in a research report on Thursday, August 6th. Zacks Research raised Paycom Software from a "hold" rating to a "strong-buy" rating in a report on Monday, May 18th. TD Cowen increased their price objective on Paycom Software from $149.00 to $244.00 and gave the company a "buy" rating in a research report on Thursday, August 6th. Finally, Barclays lifted their target price on Paycom Software from $154.00 to $210.00 and gave the company an "equal weight" rating in a research note on Thursday, August 6th. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and nine have given a Hold rating to the company. Based on data from MarketBeat.com, Paycom Software currently has an average rating of "Hold" and an average price target of $208.08.

Paycom Software Stock Performance

Paycom Software stock opened at $239.00 on Friday. The stock has a 50-day simple moving average of $171.24 and a 200 day simple moving average of $143.49. The company has a quick ratio of 1.07, a current ratio of 1.07 and a debt-to-equity ratio of 1.57. Paycom Software has a 12-month low of $104.90 and a 12-month high of $242.50. The stock has a market capitalization of $10.77 billion, a price-to-earnings ratio of 25.40, a P/E/G ratio of 1.32 and a beta of 0.76.

Paycom Software (NYSE:PAYC - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The software maker reported $2.78 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.38 by $0.40. The business had revenue of $531.20 million for 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%. The firm's quarterly revenue was up 9.8% on a year-over-year basis. During the same quarter in the prior year, the company earned $2.06 EPS. On average, research analysts anticipate that Paycom Software will post 10.65 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Paycom Software

Several institutional investors have recently modified their holdings of PAYC. California State Teachers Retirement System raised its position in shares of Paycom Software by 9,363.4% in the 2nd quarter. California State Teachers Retirement System now owns 5,681,993 shares of the software maker's stock valued at $714,113,000 after acquiring an additional 5,621,951 shares during the period. BlackRock Inc. bought a new stake in Paycom Software in the second quarter valued at approximately $632,460,000. Reinhart Partners LLC. increased its stake in Paycom Software by 887.4% in the fourth quarter. Reinhart Partners LLC. now owns 598,323 shares of the software maker's stock valued at $95,351,000 after purchasing an additional 537,726 shares in the last quarter. Contour Asset Management LLC acquired a new stake in Paycom Software in the fourth quarter worth $60,333,000. Finally, Two Sigma Investments LP raised its holdings in Paycom Software by 228.7% in the third quarter. Two Sigma Investments LP now owns 532,124 shares of the software maker's stock worth $110,756,000 after purchasing an additional 370,219 shares during the period. 87.77% of the stock is currently owned by institutional investors and hedge funds.

About Paycom Software

Paycom Software, Inc NYSE: PAYC is a cloud-based human capital management (HCM) software provider that delivers an end-to-end solution for human resources, payroll, talent acquisition, time and labor management, and talent management. Its single-database platform enables organizations to process payroll, track time, administer benefits, and manage recruiting and employee development through a unified system. Paycom's software is designed to streamline administrative tasks, improve data accuracy, and provide real-time reporting and analytics to support strategic HR decisions.

The company's core offerings include payroll processing with built-in tax compliance, employee self-service functionality, automated time tracking, and customizable talent acquisition tools that allow employers to create and post job requisitions, screen candidates, and conduct onboarding electronically.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source