Paycom Software (NYSE:PAYC) Sets New 52-Week High - Still a Buy?

Paycom Software, Inc. (NYSE:PAYC - Get Free Report)'s stock price reached a new 52-week high during trading on Tuesday . The company traded as high as $263.91 and last traded at $263.48, with a volume of 193987 shares traded. The stock had previously closed at $259.54.

Wall Street Analysts Forecast Growth

A number of equities analysts recently commented on the company. BMO Capital Markets lifted their price target on Paycom Software from $215.00 to $244.00 and gave the stock a "market perform" rating in a research note on Thursday, May 8th. Wall Street Zen downgraded Paycom Software from a "buy" rating to a "hold" rating in a research note on Tuesday, March 4th. Piper Sandler raised their target price on shares of Paycom Software from $224.00 to $246.00 and gave the stock a "neutral" rating in a report on Thursday, May 8th. JPMorgan Chase & Co. raised their target price on shares of Paycom Software from $185.00 to $200.00 and gave the stock a "neutral" rating in a report on Thursday, February 13th. Finally, Barclays raised their target price on shares of Paycom Software from $221.00 to $240.00 and gave the stock an "equal weight" rating in a report on Thursday, May 8th. Eleven investment analysts have rated the stock with a hold rating and one has assigned a buy rating to the stock. Based on data from MarketBeat.com, Paycom Software has a consensus rating of "Hold" and an average target price of $226.90.

Paycom Software Price Performance

The stock has a fifty day moving average price of $233.78 and a two-hundred day moving average price of $221.54. The company has a market cap of $15.38 billion, a P/E ratio of 29.87, a PEG ratio of 2.40 and a beta of 0.80.

Paycom Software (NYSE:PAYC - Get Free Report) last released its quarterly earnings results on Wednesday, May 7th. The software maker reported $2.80 earnings per share for the quarter, beating analysts' consensus estimates of $2.62 by $0.18. Paycom Software had a return on equity of 33.53% and a net margin of 26.66%. The company had revenue of $530.50 million for the quarter, compared to analysts' expectations of $522.92 million. During the same quarter in the previous year, the company posted $2.59 earnings per share. The business's revenue for the quarter was up 6.1% compared to the same quarter last year. As a group, analysts forecast that Paycom Software, Inc. will post 7.15 earnings per share for the current year.

Paycom Software Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, June 9th. Investors of record on Tuesday, May 27th will be issued a dividend of $0.375 per share. The ex-dividend date is Tuesday, May 27th. This represents a $1.50 annualized dividend and a yield of 0.56%. Paycom Software's payout ratio is 21.40%.

Insider Buying and Selling

In other Paycom Software news, CEO Chad R. Richison sold 120,000 shares of Paycom Software stock in a transaction that occurred on Thursday, May 8th. The shares were sold at an average price of $243.52, for a total value of $29,222,400.00. Following the transaction, the chief executive officer now owns 3,307,249 shares in the company, valued at approximately $805,381,276.48. The trade was a 3.50% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, insider Bradley Scott Smith sold 3,000 shares of Paycom Software stock in a transaction that occurred on Thursday, March 13th. The stock was sold at an average price of $201.01, for a total transaction of $603,030.00. Following the completion of the transaction, the insider now owns 28,733 shares in the company, valued at approximately $5,775,620.33. This trade represents a 9.45% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 150,316 shares of company stock valued at $36,812,058 over the last quarter. Corporate insiders own 10.90% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in PAYC. Glass Jacobson Investment Advisors llc grew its position in Paycom Software by 746.7% during the 4th quarter. Glass Jacobson Investment Advisors llc now owns 127 shares of the software maker's stock worth $26,000 after purchasing an additional 112 shares in the last quarter. von Borstel & Associates Inc. purchased a new position in Paycom Software during the 1st quarter worth approximately $27,000. SouthState Corp purchased a new position in Paycom Software during the 1st quarter worth approximately $27,000. Murphy & Mullick Capital Management Corp purchased a new position in Paycom Software during the 4th quarter worth approximately $30,000. Finally, Golden State Wealth Management LLC grew its position in Paycom Software by 112.3% during the 1st quarter. Golden State Wealth Management LLC now owns 138 shares of the software maker's stock worth $30,000 after purchasing an additional 73 shares in the last quarter. Institutional investors and hedge funds own 87.77% of the company's stock.

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.