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

Key Points

• Paycom Software, Inc. has received an average recommendation of "Hold" from twelve research firms, with only one analyst issuing a buy recommendation.
• The company recently announced a quarterly dividend of $0.375 per share, which will be paid on September 8th, reflecting a 0.7% dividend yield.
• Paycom's stock performance includes a 52-week price range with a low of $153.08 and a high of $267.76, as well as a recent quarterly EPS of $2.06, exceeding analyst expectations.

Shares of Paycom Software, Inc. (NYSE:PAYC - Get Free Report) have earned a consensus recommendation of "Hold" from the twelve research firms that are currently covering the stock, MarketBeat Ratings reports. Eleven analysts have rated the stock with a hold rating and one has assigned a buy rating to the company. The average twelve-month price target among brokerages that have issued ratings on the stock in the last year is $234.3636.

PAYC has been the subject of a number of research analyst reports. Barclays boosted their price target on Paycom Software from $240.00 to $250.00 and gave the company an "equal weight" rating in a report on Thursday, August 7th. BMO Capital Markets boosted their price target on Paycom Software from $244.00 to $258.00 and gave the company a "market perform" rating in a report on Thursday, August 7th. KeyCorp boosted their price target on Paycom Software from $285.00 to $290.00 and gave the company an "overweight" rating in a report on Thursday, August 7th. Cantor Fitzgerald started coverage on Paycom Software in a report on Thursday, August 14th. They issued a "neutral" rating and a $230.00 price target for the company. Finally, JPMorgan Chase & Co. upped their price objective on Paycom Software from $215.00 to $235.00 and gave the stock a "neutral" rating in a research note on Thursday, August 7th.

Paycom Software Trading Down 0.9%

PAYC stock traded down $2.07 during midday trading on Friday, hitting $222.23. 369,364 shares of the company's stock were exchanged, compared to its average volume of 625,104. Paycom Software has a 12-month low of $158.03 and a 12-month high of $267.76. The firm has a 50 day moving average price of $227.77 and a 200-day moving average price of $229.59. The stock has a market capitalization of $12.86 billion, a price-to-earnings ratio of 30.07, 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 (EPS) for the quarter, topping the consensus estimate of $1.78 by $0.28. Paycom Software had a return on equity of 25.40% and a net margin of 21.22%.The company had revenue of $483.60 million for the quarter, compared to the consensus estimate of $472.00 million. During the same period in the previous year, the business earned $1.62 EPS. Paycom Software's revenue for the quarter was up 10.5% compared to the same quarter last year. On average, sell-side analysts forecast that Paycom Software will post 7.15 EPS for the current fiscal year.

Paycom Software Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Monday, September 8th. Investors of record on Monday, August 25th were paid 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 was Monday, August 25th. Paycom Software's dividend payout ratio is presently 20.30%.

Insider Buying and Selling

In related news, insider Bradley Scott Smith sold 1,500 shares of the company's stock in a transaction on Thursday, June 12th. The stock was sold at an average price of $249.96, for a total transaction of $374,940.00. Following the completion of the transaction, the insider directly owned 27,233 shares in the company, valued at $6,807,160.68. This represents a 5.22% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 10.90% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. boosted its position in Paycom Software by 3.0% during the 2nd quarter. Vanguard Group Inc. now owns 5,623,570 shares of the software maker's stock worth $1,301,294,000 after acquiring an additional 165,647 shares during the period. Sylebra Capital LLC lifted its holdings in shares of Paycom Software by 63.8% in the fourth quarter. Sylebra Capital LLC now owns 3,215,085 shares of the software maker's stock valued at $658,996,000 after buying an additional 1,252,617 shares during the period. State Street Corp lifted its holdings in shares of Paycom Software by 8.4% in the second quarter. State Street Corp now owns 2,097,910 shares of the software maker's stock valued at $485,456,000 after buying an additional 162,477 shares during the period. Geode Capital Management LLC lifted its holdings in shares of Paycom Software by 5.3% in the second quarter. Geode Capital Management LLC now owns 1,661,685 shares of the software maker's stock valued at $383,265,000 after buying an additional 83,154 shares during the period. Finally, Baillie Gifford & Co. lifted its holdings in shares of Paycom Software by 1,918.4% in the first quarter. Baillie Gifford & Co. now owns 1,584,493 shares of the software maker's stock valued at $346,180,000 after buying an additional 1,505,990 shares during the period. Institutional investors and hedge funds own 87.77% of the company's stock.

Paycom Software Company Profile

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.