Paycom Software (NYSE:PAYC) Stock Price Down 3.8% - What's Next?

Paycom Software, Inc. (NYSE:PAYC - Get Free Report)'s share price was down 3.8% during trading on Wednesday . The company traded as low as $232.54 and last traded at $232.63. Approximately 552,115 shares traded hands during mid-day trading, a decline of 18% from the average daily volume of 670,842 shares. The stock had previously closed at $241.73.

Wall Street Analysts Forecast Growth

Several analysts have commented on the company. Stifel Nicolaus upped their price objective on Paycom Software from $187.00 to $215.00 and gave the company a "hold" rating in a research note on Thursday, May 8th. Piper Sandler increased their price target on Paycom Software from $224.00 to $246.00 and gave the stock a "neutral" rating in a report on Thursday, May 8th. Barclays upped their price objective on shares of Paycom Software from $221.00 to $240.00 and gave the stock an "equal weight" rating in a research report on Thursday, May 8th. Needham & Company LLC reaffirmed a "hold" rating on shares of Paycom Software in a report on Thursday, May 8th. Finally, KeyCorp increased their price target on shares of Paycom Software from $245.00 to $270.00 and gave the stock an "overweight" 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 company's stock. According to MarketBeat.com, Paycom Software has a consensus rating of "Hold" and a consensus price target of $226.90.

Paycom Software Trading Down 3.7%

The company's 50-day moving average is $241.90 and its two-hundred day moving average is $223.02. The stock has a market capitalization of $13.46 billion, a P/E ratio of 33.19, a P/E/G ratio of 2.71 and a beta of 0.81.

Paycom Software (NYSE:PAYC - Get Free Report) last issued its quarterly earnings results on Wednesday, May 7th. The software maker reported $2.80 EPS for the quarter, beating analysts' consensus estimates of $2.62 by $0.18. Paycom Software had a return on equity of 25.53% and a net margin of 20.60%. The company had revenue of $530.50 million for the quarter, compared to analyst estimates of $522.92 million. During the same period last year, the company earned $2.59 earnings per share. The company's quarterly revenue was up 6.1% compared to the same quarter last year. Sell-side analysts expect that Paycom Software, Inc. will post 7.15 EPS for the current fiscal year.

Paycom Software Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Monday, June 9th. Investors of record on Tuesday, May 27th were paid a dividend of $0.375 per share. This represents a $1.50 annualized dividend and a yield of 0.64%. The ex-dividend date was Tuesday, May 27th. Paycom Software's dividend payout ratio is presently 21.40%.

Insider Buying and Selling

In other news, COO Randall Peck sold 890 shares of the business's stock in a transaction on Wednesday, June 4th. The shares were sold at an average price of $263.21, for a total transaction of $234,256.90. Following the transaction, the chief operating officer now directly owns 49,394 shares in the company, valued at $13,000,994.74. The trade was a 1.77% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Chad R. Richison sold 120,000 shares of the company's stock in a transaction dated Thursday, May 8th. The stock was sold at an average price of $243.52, for a total value of $29,222,400.00. Following the completion of the transaction, the chief executive officer now directly 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 disclosure for this sale can be found here. Insiders have sold 172,016 shares of company stock worth $42,736,608 in the last three months. 10.90% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. Sylebra Capital LLC lifted its position in Paycom Software by 63.8% in the fourth quarter. Sylebra Capital LLC now owns 3,215,085 shares of the software maker's stock worth $658,996,000 after purchasing an additional 1,252,617 shares during the period. FMR LLC boosted its position in shares of Paycom Software by 137.8% during the 4th quarter. FMR LLC now owns 2,396,452 shares of the software maker's stock valued at $491,201,000 after acquiring an additional 1,388,533 shares in the last quarter. Baillie Gifford & Co. increased its stake in 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 acquiring an additional 1,505,990 shares during the period. Geode Capital Management LLC raised its position in Paycom Software by 6.3% in the fourth quarter. Geode Capital Management LLC now owns 1,516,768 shares of the software maker's stock worth $310,245,000 after purchasing an additional 89,848 shares in the last quarter. Finally, Invesco Ltd. raised its position in Paycom Software by 5.0% in the first quarter. Invesco Ltd. now owns 1,233,057 shares of the software maker's stock worth $269,398,000 after purchasing an additional 58,176 shares in the last quarter. 87.77% of the stock is currently owned by institutional investors and hedge funds.

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.

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