Paycom Software (NYSE:PAYC) Price Target Cut to $183.00 by Analysts at UBS Group

Key Points

• UBS Group cut its price target on Paycom from $210 to $183 but kept a buy rating, which implies roughly a 40% upside from the current share price.
• Several other brokers (Citigroup, TD Cowen, BTIG, BMO) have also trimmed targets or ratings, leaving a MarketBeat consensus of "Hold" with an average target of $168.79.
• Shares traded around $130.64 (down intraday), well below the 200‑day average and 52‑week high, despite a slim EPS beat and 10.2% year‑over‑year revenue growth for the quarter.

Paycom Software (NYSE:PAYC - Get Free Report) had its price objective dropped by research analysts at UBS Group from $210.00 to $183.00 in a research note issued on Tuesday,Benzinga reports. The firm presently has a "buy" rating on the software maker's stock. UBS Group's price target indicates a potential upside of 40.08% from the stock's current price.

PAYC has been the subject of a number of other research reports. Weiss Ratings downgraded Paycom Software from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Tuesday, February 3rd. Citigroup reduced their price objective on Paycom Software from $185.00 to $128.00 and set a "neutral" rating for the company in a research report on Friday, February 13th. TD Cowen reduced their price objective on Paycom Software from $200.00 to $184.00 and set a "buy" rating for the company in a research report on Thursday, January 8th. BTIG Research reduced their price objective on Paycom Software from $195.00 to $140.00 and set a "buy" rating for the company in a research report on Thursday, February 12th. Finally, BMO Capital Markets reduced their price objective on Paycom Software from $175.00 to $137.00 and set a "market perform" rating for the company in a research report on Thursday, February 12th. Five investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Paycom Software currently has an average rating of "Hold" and a consensus target price of $168.79.

Paycom Software Trading Down 1.8%

PAYC traded down $2.34 during midday trading on Tuesday, reaching $130.64. The company's stock had a trading volume of 498,102 shares, compared to its average volume of 1,722,550. The stock has a market cap of $6.23 billion, a P/E ratio of 16.17, a PEG ratio of 1.34 and a beta of 0.79. The company has a fifty day simple moving average of $124.25 and a 200 day simple moving average of $151.87. Paycom Software has a twelve month low of $104.90 and a twelve month high of $267.76.

Paycom Software (NYSE:PAYC - Get Free Report) last released its earnings results on Wednesday, February 11th. The software maker reported $2.45 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.44 by $0.01. Paycom Software had a return on equity of 24.25% and a net margin of 22.10%.The firm had revenue of $544.30 million for the quarter, compared to analyst estimates of $542.79 million. During the same quarter last year, the firm posted $2.32 EPS. The company's revenue was up 10.2% on a year-over-year basis. Sell-side analysts expect that Paycom Software will post 8.59 earnings per share for the current year.

Hedge Funds Weigh In On Paycom Software

Several hedge funds and other institutional investors have recently modified their holdings of the stock. UMB Bank n.a. raised its position in Paycom Software by 7.6% in the 3rd quarter. UMB Bank n.a. now owns 789 shares of the software maker's stock valued at $164,000 after purchasing an additional 56 shares during the last quarter. ORG Wealth Partners LLC raised its position in Paycom Software by 4.4% in the 3rd quarter. ORG Wealth Partners LLC now owns 1,390 shares of the software maker's stock valued at $289,000 after purchasing an additional 59 shares during the last quarter. Mackenzie Financial Corp raised its position in Paycom Software by 4.0% in the 3rd quarter. Mackenzie Financial Corp now owns 1,624 shares of the software maker's stock valued at $338,000 after purchasing an additional 63 shares during the last quarter. Davis Investment Partners LLC raised its position in Paycom Software by 2.3% in the 4th quarter. Davis Investment Partners LLC now owns 2,988 shares of the software maker's stock valued at $455,000 after purchasing an additional 68 shares during the last quarter. Finally, Compound Planning Inc. raised its position in Paycom Software by 2.9% in the 3rd quarter. Compound Planning Inc. now owns 2,899 shares of the software maker's stock valued at $603,000 after purchasing an additional 83 shares during the last quarter. Institutional investors own 87.77% of the company's stock.

About Paycom Software

Paycom Software, Inc NYSE: PAYC is a cloud-based human capital management (HCM) software provider that delivers an end-to-end solution for human resources, payroll, talent acquisition, time and labor management, and talent management. Its single-database platform enables organizations to process payroll, track time, administer benefits, and manage recruiting and employee development through a unified system. Paycom's software is designed to streamline administrative tasks, improve data accuracy, and provide real-time reporting and analytics to support strategic HR decisions.

The company's core offerings include payroll processing with built-in tax compliance, employee self-service functionality, automated time tracking, and customizable talent acquisition tools that allow employers to create and post job requisitions, screen candidates, and conduct onboarding electronically.

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