Paycom Software (NYSE:PAYC) Rating Lowered to "Strong Sell" at Zacks Research

Key Points

• Paycom Software has been downgraded from a "hold" rating to a "strong sell" rating by Zacks Research, reflecting concerns over the company’s performance.
• Analysts have varied opinions on Paycom, with price targets ranging from $225 to $285, indicating uncertainty in its stock performance amid recent changes in ratings.
• Despite recent downgrades, Paycom reported strong quarterly earnings, surpassing estimates with a revenue increase of 10.5% compared to the previous year.

Paycom Software (NYSE:PAYC - Get Free Report) was downgraded by investment analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued to clients and investors on Wednesday,Zacks.com reports.

PAYC has been the subject of several other reports. Barclays decreased their price objective on shares of Paycom Software from $250.00 to $225.00 and set an "equal weight" rating for the company in a research report on Tuesday. UBS Group decreased their price objective on shares of Paycom Software from $310.00 to $285.00 and set a "buy" rating for the company in a research report on Wednesday, September 17th. Jefferies Financial Group decreased their price objective on shares of Paycom Software from $250.00 to $225.00 and set a "hold" rating for the company in a research report on Monday, October 13th. Guggenheim started coverage on shares of Paycom Software in a research note on Friday, September 26th. They set a "buy" rating and a $270.00 target price on the stock. Finally, BMO Capital Markets increased their target price on shares of Paycom Software from $244.00 to $258.00 and gave the stock a "market perform" rating in a research note on Thursday, August 7th. Four analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of "Hold" and a consensus target price of $243.69.

Paycom Software Stock Down 1.0%

PAYC opened at $200.38 on Wednesday. Paycom Software has a twelve month low of $163.75 and a twelve month high of $267.76. The company has a fifty day moving average of $215.03 and a 200-day moving average of $228.13. The stock has a market cap of $11.60 billion, a PE ratio of 27.12, a price-to-earnings-growth ratio of 2.24 and a beta of 0.82.

Paycom Software (NYSE:PAYC - Get Free Report) last posted its quarterly earnings data on Wednesday, August 6th. The software maker reported $2.06 earnings per share for the quarter, topping the consensus estimate of $1.78 by $0.28. Paycom Software had a net margin of 21.22% and a return on equity of 25.40%. The company had revenue of $483.60 million during the quarter, compared to analysts' expectations of $472.00 million. During the same period in the prior year, the company posted $1.62 earnings per share. Paycom Software's revenue for the quarter was up 10.5% compared to the same quarter last year. Sell-side analysts anticipate that Paycom Software will post 7.15 EPS for the current fiscal year.

Insider Buying and Selling at Paycom Software

In other Paycom Software news, insider Bradley Scott Smith sold 1,500 shares of the firm's stock in a transaction on Friday, September 12th. The shares were sold at an average price of $223.27, for a total value of $334,905.00. Following the transaction, 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 ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 10.90% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in PAYC. Baillie Gifford & Co. lifted its stake in shares of Paycom Software by 1,918.4% in the first 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. Alyeska Investment Group L.P. bought a new position in shares of Paycom Software in the first quarter valued at $114,440,000. Jennison Associates LLC bought a new position in shares of Paycom Software in the second quarter valued at $49,853,000. Vanguard Group Inc. lifted its stake in shares of Paycom Software by 3.0% in the second quarter. Vanguard Group Inc. now owns 5,623,570 shares of the software maker's stock valued at $1,301,294,000 after buying an additional 165,647 shares in the last quarter. Finally, State Street Corp raised its holdings in shares of Paycom Software by 8.4% in the second quarter. State Street Corp now owns 2,097,910 shares of the software maker's stock valued at $485,456,000 after purchasing an additional 162,477 shares during the last quarter. 87.77% of the stock is 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.

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