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

Key Points

• Paycom Software, Inc. has received an average rating of "Hold" from eleven brokerage firms, with one analyst providing a buy recommendation and a 12-month price target averaging $234.80.
• The company reported earnings of $2.06 per share for the most recent quarter, exceeding analysts' predictions, alongside a revenue of $483.60 million which was also above estimates.
• Paycom has announced a quarterly dividend of $0.375 per share, representing an annualized dividend of $1.50 and a yield of 0.7%.

Paycom Software, Inc. (NYSE:PAYC - Get Free Report) has received a consensus recommendation of "Hold" from the eleven brokerages that are covering the stock, MarketBeat reports. Ten investment analysts have rated the stock with a hold recommendation and one has assigned a buy recommendation to the company. The average twelve-month target price among analysts that have updated their coverage on the stock in the last year is $234.80.

A number of research analysts recently issued reports on PAYC shares. 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. JPMorgan Chase & Co. lifted their price objective on Paycom Software from $215.00 to $235.00 and gave the company a "neutral" rating in a research report on Thursday, August 7th. Barclays lifted their price objective on Paycom Software from $240.00 to $250.00 and gave the company an "equal weight" rating in a research report on Thursday, August 7th. Stifel Nicolaus lifted their price objective on Paycom Software from $187.00 to $215.00 and gave the company a "hold" rating in a research report on Thursday, May 8th. Finally, Needham & Company LLC reaffirmed a "hold" rating on shares of Paycom Software in a research report on Thursday, May 8th.

Paycom Software Stock Up 2.7%

Shares of PAYC stock traded up $5.72 on Monday, reaching $220.93. The company's stock had a trading volume of 470,434 shares, compared to its average volume of 626,703. Paycom Software has a 12-month low of $153.08 and a 12-month high of $267.76. The company has a market capitalization of $12.78 billion, a P/E ratio of 29.92, a PEG ratio of 2.50 and a beta of 0.81. The stock's 50 day simple moving average is $234.64 and its 200-day simple moving average is $227.30.

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

Paycom Software Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, September 8th. Investors of record on Monday, August 25th will be paid a $0.375 dividend. The ex-dividend date of this dividend is Monday, August 25th. This represents a $1.50 dividend on an annualized basis and a yield of 0.7%. Paycom Software's payout ratio is 20.30%.

Insider Buying and Selling

In other news, insider Bradley Scott Smith sold 1,500 shares of the business's stock in a transaction on Thursday, June 12th. The shares were sold at an average price of $249.96, for a total transaction of $374,940.00. Following the sale, the insider directly owned 27,233 shares of the company's stock, valued at $6,807,160.68. The trade was a 5.22% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Chad R. Richison sold 23,200 shares of the business's stock in a transaction on Wednesday, June 4th. The shares were sold at an average price of $265.20, for a total transaction of $6,152,640.00. Following the sale, the chief executive officer directly owned 3,224,049 shares in the company, valued at $855,017,794.80. This trade represents a 0.71% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 25,590 shares of company stock valued at $6,761,837 over the last 90 days. Corporate insiders own 10.90% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Baillie Gifford & Co. grew its stake in Paycom Software by 1,918.4% during the 1st 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 in the last quarter. Sylebra Capital LLC grew its stake in shares of Paycom Software by 63.8% in the 4th 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. Alyeska Investment Group L.P. purchased a new position in shares of Paycom Software during the 1st quarter worth approximately $114,440,000. Zurich Insurance Group Ltd FI purchased a new position in shares of Paycom Software during the 4th quarter worth approximately $60,882,000. Finally, Universal Beteiligungs und Servicegesellschaft mbH purchased a new position in shares of Paycom Software during the 4th quarter worth approximately $57,068,000. 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.