Paycom Software (NYSE:PAYC) Hits New 1-Year High - Still a Buy?

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

Analyst Ratings Changes

Several equities analysts have issued reports on PAYC shares. Wall Street Zen downgraded shares of Paycom Software from a "buy" rating to a "hold" rating in a report on Tuesday, March 4th. Stifel Nicolaus upped their price target on shares of Paycom Software from $187.00 to $215.00 and gave the stock a "hold" rating in a research report on Thursday, May 8th. Barclays raised their price target on shares of Paycom Software from $221.00 to $240.00 and gave the company an "equal weight" rating in a research note on Thursday, May 8th. Piper Sandler boosted their price objective on Paycom Software from $224.00 to $246.00 and gave the stock a "neutral" rating in a research note on Thursday, May 8th. Finally, Needham & Company LLC reissued a "hold" rating on shares of Paycom Software in a report on Thursday, May 8th. Eleven equities research 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, the stock has a consensus rating of "Hold" and an average target price of $226.90.

Paycom Software Stock Performance

The firm has a market capitalization of $15.37 billion, a PE ratio of 29.85, a price-to-earnings-growth ratio of 2.40 and a beta of 0.81. The stock's 50 day simple moving average is $235.57 and its two-hundred day simple moving average is $222.19.

Paycom Software (NYSE:PAYC - Get Free Report) last announced its quarterly earnings data on Wednesday, May 7th. The software maker reported $2.80 EPS for the quarter, topping analysts' consensus estimates of $2.62 by $0.18. The firm had revenue of $530.50 million for the quarter, compared to the consensus estimate of $522.92 million. Paycom Software had a return on equity of 33.53% and a net margin of 26.66%. The firm's revenue was up 6.1% compared to the same quarter last year. During the same quarter last year, the business posted $2.59 earnings per share. Equities research analysts expect that Paycom Software, Inc. will post 7.15 earnings per share for the current fiscal year.

Paycom Software Dividend Announcement

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

Insider Activity at Paycom Software

In related news, COO Randall Peck sold 890 shares of the stock in a transaction that occurred on Wednesday, June 4th. The stock was sold at an average price of $263.21, for a total value of $234,256.90. Following the completion of the transaction, the chief operating officer now directly owns 49,394 shares in the company, valued at approximately $13,000,994.74. This represents a 1.77% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Chad R. Richison sold 120,000 shares of Paycom Software stock in a transaction 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 completion of the sale, the chief executive officer now owns 3,307,249 shares in the company, valued at $805,381,276.48. This represents a 3.50% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 173,516 shares of company stock valued at $42,964,698. 10.90% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. Glass Jacobson Investment Advisors llc increased its position in shares of Paycom Software by 746.7% during the fourth quarter. Glass Jacobson Investment Advisors llc now owns 127 shares of the software maker's stock valued at $26,000 after acquiring an additional 112 shares during the last quarter. von Borstel & Associates Inc. purchased a new position in shares of Paycom Software during the 1st quarter worth approximately $27,000. SouthState Corp acquired a new stake in Paycom Software in the 1st quarter valued at approximately $27,000. Murphy & Mullick Capital Management Corp purchased a new stake in Paycom Software in the fourth quarter valued at approximately $30,000. Finally, Golden State Wealth Management LLC raised its position in Paycom Software by 112.3% in the first quarter. Golden State Wealth Management LLC now owns 138 shares of the software maker's stock valued at $30,000 after purchasing an additional 73 shares during the period. Institutional investors and hedge funds own 87.77% of the company's stock.

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.