JPMorgan Chase & Co. Forecasts Strong Price Appreciation for Paycom Software (NYSE:PAYC) Stock

Key Points

• JPMorgan Chase & Co. has raised its price target for Paycom Software from $215.00 to $235.00, indicating a potential upside of 0.82%, while maintaining a "neutral" rating on the stock.
• Other analysts have also increased their price targets for Paycom, with KeyCorp raising theirs to $290.00 and BMO Capital Markets to $258.00, reflecting a general positive outlook for the stock.
• Paycom Software reported impressive quarterly earnings of $2.06 per share, exceeding analysts' expectations, alongside a revenue increase of 10.5% year-over-year.

Paycom Software (NYSE:PAYC - Get Free Report) had its price objective hoisted by research analysts at JPMorgan Chase & Co. from $215.00 to $235.00 in a research report issued on Thursday,Benzinga reports. The brokerage currently has a "neutral" rating on the software maker's stock. JPMorgan Chase & Co.'s target price suggests a potential upside of 0.82% from the company's current price.

Other analysts have also issued reports about the stock. KeyCorp lifted their target price on shares of Paycom Software from $285.00 to $290.00 and gave the company an "overweight" rating in a research report on Thursday. BMO Capital Markets raised their price objective on Paycom Software from $244.00 to $258.00 and gave the stock a "market perform" rating in a research note on Thursday. Needham & Company LLC reissued a "hold" rating on shares of Paycom Software in a report on Thursday, May 8th. Piper Sandler raised their price objective on shares of Paycom Software from $224.00 to $246.00 and gave the stock a "neutral" rating in a research report on Thursday, May 8th. Finally, Barclays upped their target price on shares of Paycom Software from $240.00 to $250.00 and gave the stock an "equal weight" rating in a report on Thursday. Eleven analysts have rated the stock with a hold rating and one has given a buy rating to the company. According to data from MarketBeat, the company has an average rating of "Hold" and an average price target of $234.80.

Paycom Software Stock Performance

Shares of PAYC traded up $9.83 during trading hours on Thursday, hitting $233.09. 1,156,146 shares of the stock were exchanged, compared to its average volume of 623,313. The stock's 50-day moving average price is $237.44 and its two-hundred day moving average price is $226.70. Paycom Software has a 12-month low of $152.46 and a 12-month high of $267.76. The company has a market cap of $13.48 billion, a price-to-earnings ratio of 33.25, a price-to-earnings-growth ratio of 2.46 and a beta of 0.81.

Paycom Software (NYSE:PAYC - Get Free Report) last posted its quarterly earnings data on Wednesday, August 6th. The software maker reported $2.06 earnings per share for the quarter, beating analysts' consensus estimates of $1.78 by $0.28. The company had revenue of $483.60 million during the quarter, compared to analysts' expectations of $472.00 million. Paycom Software had a net margin of 20.60% and a return on equity of 25.53%. The firm's revenue for the quarter was up 10.5% on a year-over-year basis. During the same period in the prior year, the company posted $1.62 EPS. On average, research analysts expect that Paycom Software will post 7.15 earnings per share for the current year.

Insiders Place Their Bets

In other news, COO Randall Peck sold 890 shares of the firm's stock in a transaction on Wednesday, June 4th. The shares were sold at an average price of $263.21, for a total value of $234,256.90. Following the transaction, the chief operating officer owned 49,394 shares of the company's stock, valued at approximately $13,000,994.74. This trade represents a 1.77% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Chad R. Richison sold 23,200 shares of the firm's stock in a transaction dated Wednesday, June 4th. The shares were sold at an average price of $265.20, for a total value of $6,152,640.00. Following the sale, the chief executive officer owned 3,224,049 shares of the company's stock, valued at $855,017,794.80. This represents a 0.71% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 52,016 shares of company stock valued at $13,514,208 in the last ninety days. Insiders own 10.90% of the company's stock.

Hedge Funds Weigh In On Paycom Software

A number of hedge funds have recently modified their holdings of PAYC. Glass Jacobson Investment Advisors llc increased its stake 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 stake in shares of Paycom Software in the 1st quarter valued at approximately $27,000. SouthState Corp bought a new position in shares of Paycom Software during the first quarter valued at $27,000. Golden State Wealth Management LLC boosted its stake in 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 in the last quarter. Finally, MassMutual Private Wealth & Trust FSB grew its holdings in Paycom Software by 135.9% during the 1st quarter. MassMutual Private Wealth & Trust FSB now owns 151 shares of the software maker's stock worth $33,000 after acquiring an additional 87 shares during the last quarter. 87.77% of the stock is currently owned by institutional investors and hedge funds.

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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