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

Key Points

• Paycom Software has received a consensus rating of "Hold" from 14 brokerages, with 10 analysts recommending a hold and 4 a buy, and an average target price of $241.77.
• The company recently reported a quarterly earnings per share (EPS) of $2.06, surpassing expectations of $1.78, with a revenue of $483.60 million for the quarter, reflecting a 10.5% increase year-over-year.
• Paycom has declared a quarterly dividend of $0.375 per share, representing an annualized dividend yield of 0.7% and a payout ratio of 20.3%.

Shares of Paycom Software, Inc. (NYSE:PAYC - Get Free Report) have been assigned a consensus rating of "Hold" from the fourteen brokerages that are presently covering the company, MarketBeat reports. Ten research analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. The average 1-year target price among brokers that have covered the stock in the last year is $241.7692.

Several brokerages have commented on PAYC. Barclays lifted their price objective on shares of Paycom Software from $240.00 to $250.00 and gave the stock an "equal weight" rating in a research report on Thursday, August 7th. JPMorgan Chase & Co. raised their price target on shares of Paycom Software from $215.00 to $235.00 and gave the stock a "neutral" rating in a research note on Thursday, August 7th. Guggenheim assumed coverage on Paycom Software in a research note on Friday. They set a "buy" rating and a $270.00 price target for the company. TD Cowen raised shares of Paycom Software from a "hold" rating to a "buy" rating and boosted their price target for the company from $246.00 to $258.00 in a research report on Monday, September 22nd. Finally, Cantor Fitzgerald raised shares of Paycom Software to a "hold" rating in a report on Thursday, September 11th.

Paycom Software Stock Up 0.3%

PAYC stock opened at $218.08 on Tuesday. The firm has a market cap of $12.62 billion, a PE ratio of 29.51, a P/E/G ratio of 2.39 and a beta of 0.81. The business has a 50 day moving average of $224.84 and a 200-day moving average of $230.11. Paycom Software has a 12-month low of $159.82 and a 12-month high of $267.76.

Paycom Software (NYSE:PAYC - Get Free Report) last issued its quarterly earnings results on Wednesday, August 6th. The software maker reported $2.06 EPS for the quarter, topping analysts' consensus estimates of $1.78 by $0.28. The business had revenue of $483.60 million for the quarter, compared to analyst estimates of $472.00 million. Paycom Software had a return on equity of 25.40% and a net margin of 21.22%.Paycom Software's quarterly revenue was up 10.5% compared to the same quarter last year. During the same period last year, the company posted $1.62 earnings per share. On average, research analysts expect that Paycom Software will post 7.15 earnings per share for the current year.

Paycom Software Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, September 8th. Stockholders of record on Monday, August 25th were given a $0.375 dividend. The ex-dividend date was Monday, August 25th. This represents a $1.50 annualized dividend and a dividend yield of 0.7%. Paycom Software's payout ratio is 20.30%.

Insider Transactions at Paycom Software

In related news, insider Bradley Scott Smith sold 1,500 shares of the stock in a transaction dated Friday, September 12th. The stock was sold at an average price of $223.27, for a total transaction of $334,905.00. Following the sale, the insider owned 24,533 shares of the company's stock, valued at approximately $5,477,482.91. This represents a 5.76% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 10.90% of the company's stock.

Institutional Investors Weigh In On Paycom Software

A number of institutional investors and hedge funds have recently modified their holdings of the company. SouthState Corp purchased a new position in Paycom Software during the first quarter valued at approximately $27,000. von Borstel & Associates Inc. purchased a new stake in Paycom Software in the 1st quarter worth approximately $27,000. CYBER HORNET ETFs LLC purchased a new stake in Paycom Software in the 2nd quarter worth approximately $29,000. Golden State Wealth Management LLC boosted its holdings in Paycom Software by 112.3% in the 1st quarter. Golden State Wealth Management LLC now owns 138 shares of the software maker's stock valued at $30,000 after purchasing an additional 73 shares during the period. Finally, MUFG Securities EMEA plc purchased a new position in shares of Paycom Software during the 2nd quarter valued at $33,000. 87.77% of the stock is owned by hedge funds and other institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.