Paycom Software, Inc. (NYSE:PAYC) Announces Quarterly Dividend of $0.38

Key Points

• Paycom announced a quarterly dividend of $0.375 per share, payable June 8 to shareholders of record on May 26 (ex-dividend May 26), which equates to a $1.50 annual dividend and about a 1.1% yield.
• With a payout ratio around 15% and analysts forecasting roughly $9.54 EPS next year, the dividend is well-covered and appears sustainable under current earnings expectations.
• Paycom posted a slight earnings beat (Q EPS $2.45 vs. $2.44) with revenue up 10.2% YoY; the stock trades at a P/E of about 16.4, market cap ~$6.3B, and carries a consensus "Hold" rating with an average price target of $168.79.

Paycom Software, Inc. (NYSE:PAYC - Get Free Report) announced a quarterly dividend on Monday, May 4th. Shareholders of record on Tuesday, May 26th will be given a dividend of 0.375 per share by the software maker on Monday, June 8th. This represents a c) dividend on an annualized basis and a yield of 1.1%. The ex-dividend date is Tuesday, May 26th.

Paycom Software has a payout ratio of 15.1% meaning its dividend is sufficiently covered by earnings. Equities analysts expect Paycom Software to earn $9.54 per share next year, which means the company should continue to be able to cover its $1.50 annual dividend with an expected future payout ratio of 15.7%.

Paycom Software Stock Performance

PAYC opened at $132.30 on Tuesday. The business's fifty day moving average is $124.88 and its two-hundred day moving average is $147.63. The company has a market cap of $6.31 billion, a price-to-earnings ratio of 16.35, a PEG ratio of 1.39 and a beta of 0.77. Paycom Software has a one year low of $104.90 and a one year high of $267.76.

Paycom Software (NYSE:PAYC - Get Free Report) last posted its earnings results on Wednesday, February 11th. The software maker reported $2.45 EPS for the quarter, topping analysts' consensus estimates of $2.44 by $0.01. The company had revenue of $544.30 million for the quarter, compared to the consensus estimate of $542.79 million. Paycom Software had a return on equity of 24.25% and a net margin of 22.10%.Paycom Software's quarterly revenue was up 10.2% compared to the same quarter last year. During the same period in the previous year, the business earned $2.32 earnings per share. On average, analysts predict that Paycom Software will post 8.59 EPS for the current fiscal year.

Analysts Set New Price Targets

Several brokerages have recently issued reports on PAYC. Weiss Ratings restated a "sell (d+)" rating on shares of Paycom Software in a research report on Friday. Mizuho dropped their target price on Paycom Software from $180.00 to $120.00 and set a "neutral" rating for the company in a research note on Thursday, February 12th. Cantor Fitzgerald upped their target price on Paycom Software from $115.00 to $135.00 and gave the company a "neutral" rating in a research note on Friday, March 6th. Jefferies Financial Group dropped their target price on Paycom Software from $190.00 to $130.00 and set a "hold" rating for the company in a research note on Thursday, February 12th. Finally, UBS Group dropped their target price on Paycom Software from $210.00 to $183.00 and set a "buy" rating for the company in a research note on Tuesday, April 21st. Five investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and an average price target of $168.79.

Paycom Software Company Profile

Paycom Software, Inc NYSE: PAYC is a cloud-based human capital management (HCM) software provider that delivers an end-to-end solution for human resources, payroll, talent acquisition, time and labor management, and talent management. Its single-database platform enables organizations to process payroll, track time, administer benefits, and manage recruiting and employee development through a unified system. Paycom's software is designed to streamline administrative tasks, improve data accuracy, and provide real-time reporting and analytics to support strategic HR decisions.

The company's core offerings include payroll processing with built-in tax compliance, employee self-service functionality, automated time tracking, and customizable talent acquisition tools that allow employers to create and post job requisitions, screen candidates, and conduct onboarding electronically.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.