Paycom Software, Inc. (NYSE:PAYC) Receives Average Recommendation of "Hold" from Brokerages

Key Points

• Paycom Software has a consensus “Hold” rating from 15 analysts: nine recommend holding, five recommend buying, and one gives a strong-buy rating. The average 12-month price target is $214.23.
• Recent analyst targets varied widely, with JPMorgan raising its neutral target to $264, UBS increasing its buy target to $285, and BTIG lifting its buy target to $230.
• Paycom’s latest quarter exceeded expectations, with adjusted earnings of $2.78 per share and revenue of $531.2 million, up 9.8% year over year. Shares opened at $223.37, near their 52-week high of $244.98.

Shares of Paycom Software, Inc. (NYSE:PAYC - Get Free Report) have been assigned an average rating of "Hold" from the fifteen research firms that are currently covering the firm, Marketbeat.com reports. Nine research analysts have rated the stock with a hold rating, five have given a buy rating and one has issued a strong buy rating on the company. The average 1-year price objective among brokerages that have issued a report on the stock in the last year is $214.2308.

A number of brokerages have recently commented on PAYC. JPMorgan Chase & Co. lifted their target price on shares of Paycom Software from $140.00 to $264.00 and gave the company a "neutral" rating in a report on Tuesday, August 25th. BTIG Research increased their price target on shares of Paycom Software from $160.00 to $230.00 and gave the stock a "buy" rating in a research note on Thursday, August 6th. UBS Group raised their price objective on shares of Paycom Software from $205.00 to $285.00 and gave the stock a "buy" rating in a research report on Tuesday, September 1st. Wall Street Zen cut shares of Paycom Software from a "buy" rating to a "hold" rating in a report on Sunday, September 6th. Finally, BMO Capital Markets raised their price target on Paycom Software from $145.00 to $208.00 and gave the stock a "market perform" rating in a report on Thursday, August 6th.

Insider Buying and Selling at Paycom Software

In other news, insider Shane Hadlock sold 2,577 shares of the business's stock in a transaction that occurred on Thursday, August 27th. The stock was sold at an average price of $237.60, for a total value of $612,295.20. Following the transaction, the insider owned 70,152 shares of the company's stock, valued at approximately $16,668,115.20. The trade was a 3.54% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 13.20% of the company's stock.

Institutional Investors Weigh In On Paycom Software

Several hedge funds have recently modified their holdings of PAYC. Clearstead Advisors LLC increased its stake in Paycom Software by 140.3% in the 4th quarter. Clearstead Advisors LLC now owns 161 shares of the software maker's stock valued at $26,000 after purchasing an additional 94 shares in the last quarter. Caitlin John LLC acquired a new position in Paycom Software during the second quarter worth $31,000. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new stake in Paycom Software during the second quarter worth $33,000. EFG International AG purchased a new stake in Paycom Software during the second quarter worth $36,000. Finally, Trust Co. of Vermont acquired a new stake in Paycom Software in the second quarter valued at $40,000. 87.77% of the stock is owned by institutional investors and hedge funds.

Paycom Software Stock Performance

Shares of PAYC opened at $223.37 on Tuesday. The stock has a 50-day simple moving average of $192.71 and a 200-day simple moving average of $151.89. 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 market capitalization of $10.07 billion, a PE ratio of 23.74, a PEG ratio of 1.22 and a beta of 0.78. Paycom Software has a 1 year low of $104.90 and a 1 year high of $244.98.

Paycom Software (NYSE:PAYC - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The software maker reported $2.78 EPS for the quarter, topping the consensus estimate of $2.38 by $0.40. Paycom Software had a return on equity of 37.06% and a net margin of 22.78%.The company had revenue of $531.20 million for the quarter, compared to analyst estimates of $513.12 million. During the same quarter in the previous year, the company posted $2.06 earnings per share. The firm's revenue was up 9.8% compared to the same quarter last year. On average, analysts predict that Paycom Software will post 10.65 earnings per share for the current fiscal year.

Paycom Software Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, September 8th. Shareholders of record on Monday, August 24th were given a dividend of $0.375 per share. This represents a $1.50 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date of this dividend was Monday, August 24th. Paycom Software's dividend payout ratio (DPR) is presently 15.94%.

About Paycom Software

Paycom Software, Inc is a provider of cloud-based payroll and human capital management (HCM) software for businesses. Its platform is designed to help organizations manage employee data and payroll processes through a unified system, serving small, midsize and larger employers primarily in the United States.

The company's products and services include payroll processing, tax management, time and labor management, talent acquisition, onboarding, employee learning, performance management, compensation planning, benefits administration, expense management and compliance tools.

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