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

Key Points

• Consensus "Hold": Paycom was given an average "Hold" rating by 17 analysts (1 sell, 11 hold, 5 buy) with a 12‑month average target of $170.71.
• Analyst downgrades: Several major firms cut price targets recently (Mizuho to $120, BMO to $137, Citigroup to $128) while some maintain buy views (Guggenheim at $180), signaling mixed but softer sentiment.
• Recent results showed a slight EPS beat ($2.45 vs. $2.44) and revenue up 10.2% to $544.3M; shares trade around $126.74 with a P/E of 15.67 and an annual dividend of $1.50 (yield ~1.2%).

Paycom Software, Inc. (NYSE:PAYC - Get Free Report) has been assigned an average rating of "Hold" from the seventeen ratings firms that are covering the firm, MarketBeat.com reports. One research analyst has rated the stock with a sell rating, eleven have given a hold rating and five have assigned a buy rating to the company. The average twelve-month target price among analysts that have issued ratings on the stock in the last year is $170.7143.

A number of equities analysts have recently weighed in on PAYC shares. Mizuho dropped their price target on shares of Paycom Software from $180.00 to $120.00 and set a "neutral" rating on the stock in a research note on Thursday, February 12th. Zacks Research raised shares of Paycom Software from a "strong sell" rating to a "hold" rating in a research note on Wednesday, February 18th. BMO Capital Markets dropped their price target on shares of Paycom Software from $175.00 to $137.00 and set a "market perform" rating on the stock in a research note on Thursday, February 12th. Citigroup dropped their price target on shares of Paycom Software from $185.00 to $128.00 and set a "neutral" rating on the stock in a research note on Friday, February 13th. Finally, Guggenheim dropped their price target on shares of Paycom Software from $210.00 to $180.00 and set a "buy" rating on the stock in a research note on Thursday, February 12th.

Paycom Software Stock Up 1.0%

Shares of NYSE:PAYC opened at $126.74 on Friday. The company's fifty day moving average is $124.18 and its two-hundred day moving average is $153.07. Paycom Software has a 12-month low of $104.90 and a 12-month high of $267.76. The company has a market cap of $6.04 billion, a P/E ratio of 15.67, a price-to-earnings-growth ratio of 1.32 and a beta of 0.79.

Paycom Software (NYSE:PAYC - Get Free Report) last announced its earnings results on Wednesday, February 11th. The software maker reported $2.45 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.44 by $0.01. Paycom Software had a net margin of 22.10% and a return on equity of 24.25%. The company had revenue of $544.30 million for the quarter, compared to the consensus estimate of $542.79 million. During the same period in the previous year, the business earned $2.32 EPS. The company's revenue was up 10.2% on a year-over-year basis. Equities research analysts anticipate that Paycom Software will post 7.15 earnings per share for the current year.

Paycom Software Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Monday, March 23rd. Stockholders of record on Monday, March 9th were paid a $0.375 dividend. The ex-dividend date of this dividend was Monday, March 9th. This represents a $1.50 dividend on an annualized basis and a dividend yield of 1.2%. Paycom Software's dividend payout ratio is 18.54%.

Hedge Funds Weigh In On Paycom Software

A number of hedge funds have recently modified their holdings of PAYC. Hsbc Holdings PLC increased its position in Paycom Software by 25.5% during the fourth quarter. Hsbc Holdings PLC now owns 98,103 shares of the software maker's stock worth $15,651,000 after buying an additional 19,937 shares during the last quarter. Corient Private Wealth LLC increased its position in Paycom Software by 218.3% during the fourth quarter. Corient Private Wealth LLC now owns 14,217 shares of the software maker's stock worth $2,266,000 after buying an additional 9,750 shares during the last quarter. Union Savings Bank acquired a new position in Paycom Software during the fourth quarter worth $80,000. Caitong International Asset Management Co. Ltd increased its position in Paycom Software by 66,500.0% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 666 shares of the software maker's stock worth $106,000 after buying an additional 665 shares during the last quarter. Finally, MidFirst Bank acquired a new position in Paycom Software during the fourth quarter worth $802,000. 87.77% of the stock is owned by institutional investors and hedge funds.

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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