Paycom Software (NYSE:PAYC) Price Target Raised to $258.00 at BMO Capital Markets

Key Points

• BMO Capital Markets raised its price target for Paycom Software's stock from $244.00 to $258.00, indicating a potential upside of 15.48% from its last close.
• Paycom Software reported quarterly earnings of $2.06 per share, surpassing analysts' expectations of $1.78, and recorded a revenue increase of 10.5% compared to the previous year.
• Insider selling activity included CEO Chad R. Richison selling 23,200 shares for about $6.15 million, resulting in a 0.71% decrease in his ownership stake.

Paycom Software (NYSE:PAYC - Get Free Report) had its price objective lifted by BMO Capital Markets from $244.00 to $258.00 in a report issued on Thursday, Marketbeat Ratings reports. The firm currently has a "market perform" rating on the software maker's stock. BMO Capital Markets' target price would indicate a potential upside of 12.52% from the stock's previous close.

PAYC has been the subject of several other reports. KeyCorp raised their target price on Paycom Software from $245.00 to $270.00 and gave the company an "overweight" rating in a research report on Thursday, May 8th. Stifel Nicolaus raised their price objective on shares of Paycom Software from $187.00 to $215.00 and gave the stock a "hold" rating in a report on Thursday, May 8th. Barclays boosted their target price on shares of Paycom Software from $221.00 to $240.00 and gave the company an "equal weight" rating in a research note on Thursday, May 8th. Needham & Company LLC restated a "hold" rating on shares of Paycom Software in a research note on Thursday, May 8th. Finally, Piper Sandler upped their price objective on Paycom Software from $224.00 to $246.00 and gave the company a "neutral" rating in a research note on Thursday, May 8th. Eleven analysts have rated the stock with a hold rating and one has issued a buy rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus price target of $234.80.

Paycom Software Trading Down 1.8%

NYSE PAYC traded down $4.09 during trading hours on Thursday, hitting $229.29. The company's stock had a trading volume of 672,064 shares, compared to its average volume of 608,893. Paycom Software has a 52 week low of $152.46 and a 52 week high of $267.76. The company has a market capitalization of $13.26 billion, a PE ratio of 31.03, a price-to-earnings-growth ratio of 2.57 and a beta of 0.81. The company's 50-day simple moving average is $236.39 and its two-hundred day simple moving average is $227.01.

Paycom Software (NYSE:PAYC - Get Free Report) last released its earnings results on Wednesday, August 6th. The software maker reported $2.06 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.78 by $0.28. The company had revenue of $483.60 million during the quarter, compared to analyst estimates of $472.00 million. Paycom Software had a return on equity of 25.40% and a net margin of 21.22%. Paycom Software's quarterly revenue was up 10.5% on a year-over-year basis. During the same period in the prior year, the company posted $1.62 earnings per share. Research analysts anticipate that Paycom Software will post 7.15 EPS for the current fiscal year.

Insider Activity

In other Paycom Software news, CEO Chad R. Richison sold 26,426 shares of the firm's stock in a transaction dated Monday, May 12th. The stock was sold at an average price of $255.52, for a total value of $6,752,371.52. Following the completion of the transaction, the chief executive officer owned 3,277,249 shares in the company, valued at $837,402,664.48. This trade represents a 0.80% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Bradley Scott Smith sold 1,500 shares of the company's stock in a transaction dated Thursday, June 12th. The shares were sold at an average price of $249.96, for a total value of $374,940.00. Following the sale, the insider owned 27,233 shares in the company, valued at approximately $6,807,160.68. This represents a 5.22% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 52,016 shares of company stock worth $13,514,208. 10.90% of the stock is owned by corporate insiders.

Institutional Trading of Paycom Software

Several institutional investors and hedge funds have recently bought and sold shares of the company. Glass Jacobson Investment Advisors llc increased its holdings in shares of Paycom Software by 746.7% in the fourth quarter. Glass Jacobson Investment Advisors llc now owns 127 shares of the software maker's stock worth $26,000 after purchasing an additional 112 shares during the period. von Borstel & Associates Inc. bought a new position in shares of Paycom Software in the first quarter worth $27,000. SouthState Corp bought a new position in shares of Paycom Software in the first quarter worth $27,000. Golden State Wealth Management LLC increased its holdings in shares of Paycom Software by 112.3% in the first quarter. Golden State Wealth Management LLC now owns 138 shares of the software maker's stock worth $30,000 after purchasing an additional 73 shares during the period. Finally, MassMutual Private Wealth & Trust FSB increased its holdings in shares of Paycom Software by 135.9% in the first quarter. MassMutual Private Wealth & Trust FSB now owns 151 shares of the software maker's stock worth $33,000 after purchasing an additional 87 shares during the period. 87.77% of the stock is currently owned by hedge funds and other institutional investors.

About Paycom Software

Paycom Software, Inc provides cloud-based human capital management (HCM) solution delivered as software-as-a-service for small to mid-sized companies in the United States. It offers functionality and data analytics that businesses need to manage the employment life cycle from recruitment to retirement.