TD Cowen Issues Positive Forecast for Paycom Software (NYSE:PAYC) Stock Price

Key Points

• TD Cowen raised Paycom Software’s price target to $286 from $244 and maintained a “buy” rating, implying 29.38% upside from the reported $221.06 share price.
• Paycom reported quarterly earnings of $2.78 per share, beating estimates of $2.38, while revenue of $531.2 million exceeded expectations and increased 9.8% year over year.
• Analyst sentiment remains mixed: Paycom has an average “hold” rating and a consensus price target of $216.93, despite 87.77% institutional ownership and several recently increased price targets.

Paycom Software (NYSE:PAYC - Get Free Report) had its price target lifted by equities researchers at TD Cowen from $244.00 to $286.00 in a report issued on Friday, Benzinga reports. The firm currently has a "buy" rating on the software maker's stock. TD Cowen's price target would suggest a potential upside of 29.38% from the company's current price.

Several other brokerages also recently issued reports on PAYC. Cantor Fitzgerald raised their price objective 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. JPMorgan Chase & Co. increased their price target on Paycom Software from $140.00 to $264.00 and gave the stock a "neutral" rating in a report on Tuesday, August 25th. BTIG Research raised their price target on Paycom Software from $160.00 to $230.00 and gave the stock a "buy" rating in a research note on Thursday, August 6th. Stifel Nicolaus boosted their price objective on Paycom Software from $120.00 to $200.00 and gave the company a "hold" rating in a report on Thursday, August 6th. Finally, UBS Group upped their price objective on Paycom Software from $205.00 to $285.00 and gave the company a "buy" rating in a research report on Tuesday, September 1st. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, nine have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $216.93.

Paycom Software Trading Up 0.0%

NYSE PAYC traded up $0.07 on Friday, hitting $221.06. 115,101 shares of the stock were exchanged, compared to its average volume of 1,219,833. 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 has a fifty day moving average price of $215.01 and a two-hundred day moving average price of $161.05. The firm has a market capitalization of $9.96 billion, a P/E ratio of 23.49, a P/E/G ratio of 1.20 and a beta of 0.82. 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 announced its earnings results on Wednesday, August 5th. The software maker reported $2.78 earnings per share for the quarter, beating 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 business's revenue for the quarter was up 9.8% on a year-over-year basis. During the same quarter in the prior year, the firm posted $2.06 earnings per share. Research analysts forecast that Paycom Software will post 10.64 EPS for the current fiscal year.

Insider Buying and Selling

In other news, insider Shane Hadlock sold 241 shares of the business's stock in a transaction dated Friday, August 28th. The stock was sold at an average price of $240.07, for a total transaction of $57,856.87. Following the sale, the insider owned 69,911 shares in the company, valued at approximately $16,783,533.77. The trade was a 0.34% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 13.20% of the stock is owned by insiders.

Institutional Trading of Paycom Software

A number of hedge funds have recently modified their holdings of the stock. Caitlin John LLC purchased a new position in shares of Paycom Software during the 2nd quarter valued at approximately $31,000. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in shares of Paycom Software during the 2nd quarter worth $33,000. EFG International AG purchased a new stake in shares of Paycom Software in the 2nd quarter valued at approximately $36,000. Trust Co. of Vermont acquired a new stake in Paycom Software during the second quarter worth $40,000. Finally, Global Retirement Partners LLC purchased a new stake in Paycom Software in the 2nd quarter valued at about $43,000. 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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