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

Key Points

• Paycom Software, Inc. has a consensus rating of "Hold" among 16 brokerages, with one sell recommendation and four buy recommendations.
• The average 1-year price target for Paycom stock is $243.69, reflecting a mixed outlook from analysts.
• Insider transactions show Bradley Scott Smith sold 1,500 shares recently, reducing his ownership in the company by 5.76%.

Paycom Software, Inc. (NYSE:PAYC - Get Free Report) has been assigned a consensus rating of "Hold" from the sixteen brokerages that are presently covering the stock, MarketBeat reports. One analyst has rated the stock with a sell recommendation, eleven have issued a hold recommendation and four have issued a buy recommendation on the company. The average 1-year price target among brokers that have issued a report on the stock in the last year is $243.6923.

A number of brokerages recently weighed in on PAYC. Weiss Ratings restated a "hold (c)" rating on shares of Paycom Software in a research report on Wednesday, October 8th. Barclays dropped their target price on shares of Paycom Software from $250.00 to $225.00 and set an "equal weight" rating for the company in a research report on Tuesday. KeyCorp upped their target price on shares of Paycom Software from $285.00 to $290.00 and gave the stock an "overweight" rating in a research report on Thursday, August 7th. UBS Group dropped their target price on shares of Paycom Software from $310.00 to $285.00 and set a "buy" rating for the company in a research report on Wednesday, September 17th. Finally, Zacks Research lowered shares of Paycom Software from a "hold" rating to a "strong sell" rating in a research report on Wednesday.

Insider Buying and Selling

In other Paycom Software news, insider Bradley Scott Smith sold 1,500 shares of the stock in a transaction on Friday, September 12th. The shares were sold at an average price of $223.27, for a total transaction of $334,905.00. Following the completion of the transaction, the insider owned 24,533 shares in the company, valued at $5,477,482.91. This trade represents a 5.76% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 10.90% of the stock is owned by company insiders.

Hedge Funds Weigh In On Paycom Software

Several institutional investors have recently bought and sold shares of the business. Vanguard Group Inc. lifted its position in Paycom Software by 3.0% during the second quarter. Vanguard Group Inc. now owns 5,623,570 shares of the software maker's stock valued at $1,301,294,000 after purchasing an additional 165,647 shares during the last quarter. State Street Corp lifted its position in Paycom Software by 8.4% during the second quarter. State Street Corp now owns 2,097,910 shares of the software maker's stock valued at $485,456,000 after purchasing an additional 162,477 shares during the last quarter. Geode Capital Management LLC lifted its position in Paycom Software by 5.3% during 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 purchasing an additional 83,154 shares during the last quarter. Baillie Gifford & Co. raised its stake 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 acquiring an additional 1,505,990 shares during the period. Finally, Invesco Ltd. raised its stake in shares of Paycom Software by 5.0% in the first quarter. Invesco Ltd. now owns 1,233,057 shares of the software maker's stock valued at $269,398,000 after acquiring an additional 58,176 shares during the period. Institutional investors own 87.77% of the company's stock.

Paycom Software Stock Performance

Shares of NYSE:PAYC opened at $199.56 on Friday. The firm has a fifty day moving average price of $214.69 and a 200 day moving average price of $228.17. Paycom Software has a fifty-two week low of $163.75 and a fifty-two week high of $267.76. The firm has a market cap of $11.55 billion, a price-to-earnings ratio of 27.00, a P/E/G ratio of 2.21 and a beta of 0.82.

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

Paycom Software Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Monday, September 8th. Shareholders of record on Monday, August 25th were given a dividend of $0.375 per share. The ex-dividend date was Monday, August 25th. This represents a $1.50 annualized dividend and a yield of 0.8%. Paycom Software's dividend payout ratio (DPR) is 20.30%.

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.

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