Paycom Software (NYSE:PAYC) Given New $225.00 Price Target at Barclays

Key Points

• Barclays has lowered its price target for Paycom Software from $250.00 to $225.00 while maintaining an "equal weight" rating, indicating an upside potential of 11.69% from the current price.
• Several other analysts have increased their price targets for Paycom, with JPMorgan Chase raising theirs to $235.00 and BMO Capital Markets to $258.00, reflecting varying outlooks on the company's stock.
• Paycom Software recently reported a 10.5% year-over-year revenue increase, achieving $483.60 million in revenue and $2.06 earnings per share for the quarter, surpassing analysts' expectations.

Paycom Software (NYSE:PAYC - Get Free Report) had its price objective dropped by investment analysts at Barclays from $250.00 to $225.00 in a research note issued to investors on Tuesday,Benzinga reports. The brokerage presently has an "equal weight" rating on the software maker's stock. Barclays's price target indicates a potential upside of 11.69% from the company's current price.

A number of other analysts have also weighed in on the company. JPMorgan Chase & Co. upped their target price on Paycom Software from $215.00 to $235.00 and gave the stock a "neutral" rating in a report on Thursday, August 7th. BMO Capital Markets increased their price objective on Paycom Software from $244.00 to $258.00 and gave the company a "market perform" rating in a report on Thursday, August 7th. Cantor Fitzgerald raised Paycom Software to a "hold" rating in a research report on Thursday, September 11th. Weiss Ratings reissued a "hold (c)" rating on shares of Paycom Software in a report on Wednesday, October 8th. Finally, Guggenheim began coverage on shares of Paycom Software in a report on Friday, September 26th. They set a "buy" rating and a $270.00 price objective on the stock. Four analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company. According to data from MarketBeat, Paycom Software presently has an average rating of "Hold" and a consensus target price of $243.69.

Paycom Software Stock Up 0.4%

Paycom Software stock opened at $201.46 on Tuesday. The business has a fifty day moving average of $215.88 and a two-hundred day moving average of $228.43. The firm has a market cap of $11.66 billion, a P/E ratio of 27.26, a P/E/G ratio of 2.20 and a beta of 0.82. Paycom Software has a twelve month low of $162.62 and a twelve month high of $267.76.

Paycom Software (NYSE:PAYC - Get Free Report) last posted 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. The company had revenue of $483.60 million during 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 revenue was up 10.5% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.62 earnings per share. Equities analysts expect that Paycom Software will post 7.15 earnings per share for the current year.

Insiders Place Their Bets

In other Paycom Software 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 directly owned 24,533 shares of the company's stock, valued at approximately $5,477,482.91. This trade represents a 5.76% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 10.90% of the company's stock.

Institutional Investors Weigh In On Paycom Software

Several hedge funds and other institutional investors have recently added to or reduced their stakes in PAYC. Baillie Gifford & Co. grew its position 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 worth $346,180,000 after purchasing an additional 1,505,990 shares during the period. Alyeska Investment Group L.P. purchased a new stake in shares of Paycom Software during the 1st quarter worth about $114,440,000. Jennison Associates LLC purchased a new stake in shares of Paycom Software during the 2nd quarter worth about $49,853,000. Vanguard Group Inc. boosted its stake in shares of Paycom Software by 3.0% during the 2nd quarter. Vanguard Group Inc. now owns 5,623,570 shares of the software maker's stock worth $1,301,294,000 after acquiring an additional 165,647 shares in the last quarter. Finally, State Street Corp boosted its stake in shares of Paycom Software by 8.4% during the 2nd quarter. State Street Corp now owns 2,097,910 shares of the software maker's stock worth $485,456,000 after acquiring an additional 162,477 shares in the last quarter. 87.77% of the stock is owned by institutional investors and hedge funds.

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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