Paycom Software, Inc. (PAYC) - What Are Researchers Saying About This Stock?

Key Points

• Analysts maintain a “Hold” consensus: Of 16 firms covering Paycom, 10 rate it Hold, five Buy and one Sell. The average 12-month price target is $216.93, below the reported share price of $232.29.
• Paycom exceeded quarterly expectations: The company reported adjusted EPS of $2.78 versus the $2.38 consensus estimate, while revenue rose 9.8% year over year to $531.2 million.
• Paycom continues returning capital to shareholders: It declared a quarterly dividend of $0.375, equivalent to a $1.50 annualized payout and a 0.6% yield; institutional investors own 87.77% of the stock.

Paycom Software, Inc. (NYSE:PAYC - Get Free Report) has been assigned a consensus recommendation of "Hold" from the sixteen research firms that are presently covering the firm, MarketBeat reports. One research analyst has rated the stock with a sell recommendation, ten have given a hold recommendation and five have assigned a buy recommendation to the company. The average 12 month target price among analysts that have updated their coverage on the stock in the last year is $216.93.

A number of research analysts have recently weighed in on the company. Cantor Fitzgerald increased their price target on Paycom Software from $135.00 to $195.00 and gave the company a "neutral" rating in a research note on Thursday, August 6th. KeyCorp boosted their target price on Paycom Software from $270.00 to $280.00 and gave the stock an "overweight" rating in a research report on Monday, September 21st. Weiss Ratings upgraded shares of Paycom Software from a "hold (c)" rating to a "hold (c+)" rating in a report on Thursday. UBS Group upped their target price on shares of Paycom Software from $205.00 to $285.00 and gave the company a "buy" rating in a research note on Tuesday, September 1st. Finally, Wall Street Zen downgraded shares of Paycom Software from a "buy" rating to a "hold" rating in a research note on Sunday, September 6th.

Paycom Software Trading Up 1.0%

PAYC opened at $232.29 on Friday. The company has a debt-to-equity ratio of 1.57, a current ratio of 1.07 and a quick ratio of 1.07. The company has a market cap of $10.47 billion, a price-to-earnings ratio of 24.69, a price-to-earnings-growth ratio of 1.25 and a beta of 0.82. The firm has a 50 day simple moving average of $221.50 and a 200 day simple moving average of $164.36. Paycom Software has a fifty-two week low of $104.90 and a fifty-two week high of $244.98.

Paycom Software (NYSE:PAYC - Get Free Report) last announced its quarterly earnings data 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 net margin of 22.78% and a return on equity of 37.06%. The firm had revenue of $531.20 million for the quarter, compared to analysts' expectations of $513.12 million. During the same period last year, the firm earned $2.06 earnings per share. The business's revenue for the quarter was up 9.8% on a year-over-year basis. On average, sell-side analysts anticipate that Paycom Software will post 10.64 earnings per share for the current year.

Paycom Software Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, September 8th. Stockholders of record on Monday, August 24th were issued a $0.3750 dividend. The ex-dividend date of this dividend was Monday, August 24th. This represents a $1.50 annualized dividend and a dividend yield of 0.6%. Paycom Software's payout ratio is 15.94%.

Insider Activity at Paycom Software

In related news, insider Shane Hadlock sold 241 shares of the company's stock in a transaction on Friday, August 28th. The shares were sold at an average price of $240.07, for a total value of $57,856.87. Following the completion of the sale, the insider owned 69,911 shares in the company, valued at $16,783,533.77. This represents a 0.34% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 13.20% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. BlackRock Inc. bought a new stake in shares of Paycom Software in the second quarter valued at about $632,460,000. Contour Asset Management LLC acquired a new stake in Paycom Software in the 4th quarter valued at approximately $60,333,000. Bank of New York Mellon Corp acquired a new stake in Paycom Software in the 2nd quarter valued at approximately $42,858,000. River Road Asset Management LLC lifted its stake in Paycom Software by 481.9% in the 4th quarter. River Road Asset Management LLC now owns 392,403 shares of the software maker's stock valued at $62,533,000 after acquiring an additional 324,970 shares in the last quarter. Finally, Equity Investment Corp bought a new stake in Paycom Software in the 2nd quarter valued at approximately $37,085,000. 87.77% of the stock is owned by institutional investors and hedge funds.

About Paycom Software

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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