UBS Group Issues Pessimistic Forecast for Paycom Software (NYSE:PAYC) Stock Price

Key Points

• UBS Group has lowered its price target for Paycom Software from $310.00 to $285.00, maintaining a "buy" rating, which suggests a potential upside of 32.69% from the last close.
• Several analysts have adjusted their price targets for Paycom Software, with estimates now ranging from $244.00 to $290.00, while the stock currently has a consensus rating of "Hold."
• Paycom reported $2.06 earnings per share for the last quarter, exceeding expectations and reflecting a 10.5% year-over-year revenue growth.

Paycom Software (NYSE:PAYC - Free Report) had its price target reduced by UBS Group from $310.00 to $285.00 in a research report released on Wednesday morning,Benzinga reports. UBS Group currently has a buy rating on the software maker's stock.

A number of other research firms also recently weighed in on PAYC. 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. KeyCorp increased their price objective 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. BMO Capital Markets increased their price target on shares of Paycom Software from $244.00 to $258.00 and gave the company a "market perform" rating in a research report on Thursday, August 7th. Cantor Fitzgerald upgraded Paycom Software to a "hold" rating in a research note on Thursday, September 11th. Finally, Barclays increased their target price on shares of Paycom Software from $240.00 to $250.00 and gave the stock an "equal weight" rating in a research report on Thursday, August 7th. Two analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $238.58.

Paycom Software Stock Down 0.1%

PAYC stock traded down $0.23 during midday trading on Wednesday, hitting $216.32. 1,660,400 shares of the company traded hands, compared to its average volume of 558,613. The stock has a market capitalization of $12.52 billion, a price-to-earnings ratio of 29.27, a price-to-earnings-growth ratio of 2.38 and a beta of 0.81. The business has a 50 day simple moving average of $225.68 and a 200-day simple moving average of $229.55. Paycom Software has a twelve month low of $158.03 and a twelve month high of $267.76.

Paycom Software (NYSE:PAYC - Get Free Report) last released its quarterly earnings data on Wednesday, August 6th. The software maker reported $2.06 earnings per share for the quarter, beating the consensus estimate of $1.78 by $0.28. The business had revenue of $483.60 million for the quarter, compared to analysts' expectations 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 for the quarter was up 10.5% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.62 EPS. Equities research analysts forecast that Paycom Software will post 7.15 EPS for the current year.

Paycom Software Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, September 8th. Shareholders of record on Monday, August 25th were paid a $0.375 dividend. The ex-dividend date of this dividend was Monday, August 25th. This represents a $1.50 annualized dividend and a dividend yield of 0.7%. Paycom Software's dividend payout ratio (DPR) is currently 20.30%.

Insider Buying and Selling at Paycom Software

In related news, insider Bradley Scott Smith sold 1,500 shares of the company's stock in a transaction dated Friday, September 12th. The shares were sold at an average price of $223.27, for a total value of $334,905.00. Following the sale, the insider owned 24,533 shares in the company, valued at $5,477,482.91. This represents a 5.76% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Insiders own 10.90% of the company's stock.

Institutional Trading of Paycom Software

Large investors have recently added to or reduced their stakes in the business. Baillie Gifford & Co. boosted its holdings in shares of Paycom Software by 1,918.4% in the 1st quarter. Baillie Gifford & Co. now owns 1,584,493 shares of the software maker's stock valued at $346,180,000 after buying an additional 1,505,990 shares in the last quarter. Sylebra Capital LLC boosted its stake in Paycom Software by 63.8% in the 4th quarter. Sylebra Capital LLC now owns 3,215,085 shares of the software maker's stock worth $658,996,000 after buying an additional 1,252,617 shares during the last quarter. Alyeska Investment Group L.P. acquired a new position in Paycom Software during the 1st quarter valued at approximately $114,440,000. Universal Beteiligungs und Servicegesellschaft mbH acquired a new position in Paycom Software during the fourth quarter valued at $57,068,000. Finally, Jennison Associates LLC bought a new stake in shares of Paycom Software in the 2nd quarter worth approximately $49,853,000. 87.77% of the stock is currently owned by institutional investors.

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.