Paycom Software, Inc. (NYSE:PAYC) Given Consensus Recommendation of "Hold" by Analysts

Key Points

• Analysts collectively rate Paycom Software “Hold.” Of 15 brokerages, nine issued hold ratings, five recommended buying, and one gave a strong-buy rating; the average 12-month price target is approximately $204.69.
• Paycom exceeded quarterly expectations, reporting $2.78 in EPS versus the $2.38 consensus and revenue of $531.2 million versus $513.1 million expected. Revenue increased 9.8% year over year, while analysts forecast $10.48 in full-year EPS.
• The company declared a quarterly dividend of $0.375 per share, equivalent to $1.50 annually and a 0.7% yield. Institutional investors own 87.77% of Paycom’s outstanding shares.

Shares of Paycom Software, Inc. (NYSE:PAYC - Get Free Report) have earned an average recommendation of "Hold" from the fifteen brokerages that are covering the stock, MarketBeat.com reports. Nine equities research analysts have rated the stock with a hold rating, five have issued a buy rating and one has given a strong buy rating to the company. The average 1 year price objective among brokerages that have issued ratings on the stock in the last year is $204.6923.

Several research analysts recently weighed in on the stock. Barclays upped their target price on shares of Paycom Software from $154.00 to $210.00 and gave the stock an "equal weight" rating in a report on Thursday, August 6th. Zacks Research raised Paycom Software from a "hold" rating to a "strong-buy" rating in a report on Monday, May 18th. TD Cowen boosted their price objective on Paycom Software from $149.00 to $244.00 and gave the company a "buy" rating in a research report on Thursday, August 6th. Citigroup upped their price objective on Paycom Software from $136.00 to $194.00 and gave the stock a "neutral" rating in a research note on Friday, August 7th. Finally, Cantor Fitzgerald increased their target price on Paycom Software from $135.00 to $195.00 and gave the stock a "neutral" rating in a research report on Thursday, August 6th.

Paycom Software Price Performance

Shares of NYSE:PAYC opened at $225.72 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. Paycom Software has a 1-year low of $104.90 and a 1-year high of $234.60. The company has a market capitalization of $10.17 billion, a P/E ratio of 23.99, a P/E/G ratio of 1.25 and a beta of 0.76. The firm's 50 day simple moving average is $158.68 and its two-hundred day simple moving average is $139.22.

Paycom Software (NYSE:PAYC - Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The software maker reported $2.78 earnings per share for the quarter, topping analysts' consensus estimates of $2.38 by $0.40. The business had revenue of $531.20 million during the quarter, compared to analyst estimates of $513.12 million. Paycom Software had a net margin of 22.78% and a return on equity of 37.06%. The company's revenue was up 9.8% on a year-over-year basis. During the same period in the prior year, the business posted $2.06 earnings per share. Research analysts expect that Paycom Software will post 10.48 EPS for the current fiscal year.

Paycom Software Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 8th. Shareholders of record on Monday, August 24th will be paid a $0.375 dividend. This represents a $1.50 annualized dividend and a yield of 0.7%. The ex-dividend date is Monday, August 24th. Paycom Software's dividend payout ratio is presently 15.94%.

Hedge Funds Weigh In On Paycom Software

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. CYBER HORNET ETFs LLC bought a new stake in Paycom Software in the 2nd quarter valued at $29,000. MUFG Securities EMEA plc bought a new position in shares of Paycom Software during the 2nd quarter valued at about $33,000. Brown Brothers Harriman & Co. grew its position in shares of Paycom Software by 190.6% during the fourth quarter. Brown Brothers Harriman & Co. now owns 154 shares of the software maker's stock valued at $25,000 after purchasing an additional 101 shares in the last quarter. Palisade Asset Management LLC purchased a new position in shares of Paycom Software during the third quarter valued at about $33,000. Finally, Clearstead Advisors LLC increased its holdings in shares of Paycom Software by 140.3% in the fourth quarter. Clearstead Advisors LLC now owns 161 shares of the software maker's stock worth $26,000 after purchasing an additional 94 shares during the last quarter. Institutional investors own 87.77% of the company's stock.

About Paycom Software

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.

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