Guggenheim Initiates Coverage on Paycom Software (NYSE:PAYC)

Key Points

• Guggenheim has initiated coverage on Paycom Software with a "buy" rating and a price target of $270.00, indicating a potential upside of 25.51% from the stock's previous close.
• Multiple analysts have recently adjusted their target prices for Paycom, with BMO raising it to $258.00 and UBS lowering it to $285.00.
• Paycom Software reported $2.06 EPS for the last quarter, surpassing estimates by $0.28 and showing a 10.5% year-over-year revenue growth.

Equities researchers at Guggenheim assumed coverage on shares of Paycom Software (NYSE:PAYC - Get Free Report) in a research report issued to clients and investors on Friday,Briefing.com Automated Import reports. The brokerage set a "buy" rating and a $270.00 price target on the software maker's stock. Guggenheim's price target indicates a potential upside of 25.51% from the company's previous close.

A number of other equities analysts have also recently issued reports on the company. BMO Capital Markets raised their target price on Paycom Software from $244.00 to $258.00 and gave the stock a "market perform" rating in a report on Thursday, August 7th. Cantor Fitzgerald raised shares of Paycom Software to a "hold" rating in a research note on Thursday, September 11th. TD Cowen raised shares of Paycom Software from a "hold" rating to a "buy" rating and lifted their price target for the stock from $246.00 to $258.00 in a research report on Monday. UBS Group reduced their price target on shares of Paycom Software from $310.00 to $285.00 and set a "buy" rating on the stock in a research report on Wednesday, September 17th. Finally, KeyCorp lifted their price target on shares of Paycom Software from $285.00 to $290.00 and gave the stock an "overweight" rating in a research report on Thursday, August 7th. Four analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company's stock. According to MarketBeat.com, Paycom Software currently has an average rating of "Hold" and a consensus target price of $241.77.

Paycom Software Stock Down 1.1%

Paycom Software stock opened at $215.13 on Friday. The business's 50-day simple moving average is $225.28 and its 200 day simple moving average is $229.62. The stock has a market cap of $12.45 billion, a price-to-earnings ratio of 29.11, a P/E/G ratio of 2.39 and a beta of 0.81. Paycom Software has a 12-month low of $158.03 and a 12-month high of $267.76.

Paycom Software (NYSE:PAYC - Get Free Report) last issued 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. Paycom Software had a net margin of 21.22% and a return on equity of 25.40%. The company had revenue of $483.60 million for the quarter, compared to analyst estimates of $472.00 million. During the same quarter last year, the firm earned $1.62 EPS. The company's revenue for the quarter was up 10.5% on a year-over-year basis. As a group, sell-side analysts expect that Paycom Software will post 7.15 EPS for the current year.

Insider Activity at Paycom Software

In other news, insider Bradley Scott Smith sold 1,500 shares of the business's stock in a transaction on Friday, September 12th. The shares were sold at an average price of $223.27, for a total value of $334,905.00. Following the sale, the insider owned 24,533 shares of the company's stock, valued at $5,477,482.91. The trade was a 5.76% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 10.90% of the stock is currently owned by company insiders.

Institutional Trading of Paycom Software

Institutional investors and hedge funds have recently bought and sold shares of the stock. SouthState Corp bought a new stake in Paycom Software during the first quarter worth about $27,000. von Borstel & Associates Inc. bought a new stake in shares of Paycom Software during the 1st quarter worth approximately $27,000. CYBER HORNET ETFs LLC bought a new stake in Paycom Software during the second quarter worth $29,000. Golden State Wealth Management LLC raised its position in Paycom Software by 112.3% during the first quarter. Golden State Wealth Management LLC now owns 138 shares of the software maker's stock worth $30,000 after acquiring an additional 73 shares in the last quarter. Finally, MUFG Securities EMEA plc bought a new stake in Paycom Software during the second quarter worth $33,000. Institutional investors own 87.77% of the company's stock.

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.

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