Paycom Software, Inc. (NYSE:PAYC) to Issue Quarterly Dividend of $0.38

Key Points

• Paycom Software, Inc. has announced a quarterly dividend of $0.38, which will be paid on September 8th to investors of record as of August 25th.
• The company reported a net margin of 20.60% and a year-over-year revenue increase of 6.1%, with quarterly earnings of $2.80 per share exceeding estimates.
• Equities analysts have raised their price targets for Paycom Software, with a consensus price target now at $226.90, reflecting a strong "hold" rating from eleven analysts.

Paycom Software, Inc. (NYSE:PAYC - Get Free Report) declared a quarterly dividend on Monday, August 4th, RTT News reports. Investors of record on Monday, August 25th will be paid a dividend of 0.375 per share by the software maker on Monday, September 8th. This represents a c) annualized dividend and a yield of 0.7%.

Paycom Software has a dividend payout ratio of 15.1% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect Paycom Software to earn $7.97 per share next year, which means the company should continue to be able to cover its $1.50 annual dividend with an expected future payout ratio of 18.8%.

Paycom Software Price Performance

NYSE PAYC traded up $3.02 on Monday, reaching $229.46. 566,688 shares of the company's stock traded hands, compared to its average volume of 613,647. Paycom Software has a 12 month low of $152.46 and a 12 month high of $267.76. The stock has a 50-day simple moving average of $239.49 and a 200 day simple moving average of $226.60. The stock has a market cap of $13.27 billion, a PE ratio of 32.73, a P/E/G ratio of 2.49 and a beta of 0.81.

Paycom Software (NYSE:PAYC - Get Free Report) last posted its quarterly earnings results on Wednesday, May 7th. The software maker reported $2.80 earnings per share for the quarter, topping the consensus estimate of $2.62 by $0.18. The business had revenue of $530.50 million during the quarter, compared to the consensus estimate of $522.92 million. Paycom Software had a net margin of 20.60% and a return on equity of 25.53%. The firm's revenue for the quarter was up 6.1% on a year-over-year basis. During the same period in the previous year, the firm posted $2.59 earnings per share. As a group, analysts anticipate that Paycom Software will post 7.15 EPS for the current year.

Analysts Set New Price Targets

Several equities analysts have recently commented on the stock. BMO Capital Markets upped their price objective on shares of Paycom Software from $215.00 to $244.00 and gave the company a "market perform" rating in a research note on Thursday, May 8th. Barclays boosted their price target on shares of Paycom Software from $221.00 to $240.00 and gave the company an "equal weight" rating in a research report on Thursday, May 8th. Piper Sandler boosted their price target on shares of Paycom Software from $224.00 to $246.00 and gave the company a "neutral" rating in a research report on Thursday, May 8th. Needham & Company LLC reiterated a "hold" rating on shares of Paycom Software in a research report on Thursday, May 8th. Finally, Stifel Nicolaus boosted their price target on shares of Paycom Software from $187.00 to $215.00 and gave the company a "hold" rating in a research report on Thursday, May 8th. Eleven investment analysts have rated the stock with a hold rating and one has given a buy rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $226.90.

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.

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