Paycom Software (NYSE:PAYC) Stock Price Down 4.9% - Should You Sell?

Paycom Software, Inc. (NYSE:PAYC - Get Free Report)'s stock price dropped 4.9% on Wednesday . The stock traded as low as $224.69 and last traded at $223.48. Approximately 165,127 shares traded hands during trading, a decline of 75% from the average daily volume of 662,627 shares. The stock had previously closed at $235.05.

Analyst Upgrades and Downgrades

Several equities analysts recently weighed in on the stock. Stifel Nicolaus increased their price objective on shares of Paycom Software from $187.00 to $215.00 and gave the company a "hold" rating in a report on Thursday, May 8th. Needham & Company LLC reiterated a "hold" rating on shares of Paycom Software in a research report on Thursday, May 8th. Wall Street Zen lowered Paycom Software from a "buy" rating to a "hold" rating in a research report on Tuesday, March 4th. BMO Capital Markets lifted their price objective 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. Finally, Piper Sandler increased their target price on Paycom Software from $224.00 to $246.00 and gave the company a "neutral" rating in a research note on Thursday, May 8th. Eleven investment analysts have rated the stock with a hold rating and one has issued a buy rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Hold" and a consensus target price of $226.90.

Paycom Software Trading Down 5.0%

The firm has a market capitalization of $12.91 billion, a P/E ratio of 31.84, a PEG ratio of 2.57 and a beta of 0.81. The business has a 50 day moving average of $243.56 and a 200-day moving average of $223.04.

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

Paycom Software Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Monday, June 9th. Shareholders of record on Tuesday, May 27th were paid a $0.375 dividend. This represents a $1.50 dividend on an annualized basis and a yield of 0.67%. The ex-dividend date was Tuesday, May 27th. Paycom Software's dividend payout ratio is currently 21.40%.

Insider Activity

In other news, insider Bradley Scott Smith sold 1,500 shares of the company's stock in a transaction that occurred on Thursday, June 12th. The stock was sold at an average price of $249.96, for a total value of $374,940.00. Following the transaction, the insider now owns 27,233 shares of the company's stock, valued at approximately $6,807,160.68. This represents a 5.22% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Chad R. Richison sold 26,426 shares of the stock in a transaction that occurred on Monday, May 12th. The stock was sold at an average price of $255.52, for a total value of $6,752,371.52. Following the transaction, the chief executive officer now owns 3,277,249 shares in the company, valued at approximately $837,402,664.48. This trade represents a 0.80% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 172,016 shares of company stock valued at $42,736,608 in the last quarter. Company insiders own 10.90% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Inspire Investing LLC bought a new position in Paycom Software during the first quarter worth about $2,202,000. Strs Ohio acquired a new stake in Paycom Software during the first quarter worth approximately $728,000. GK Wealth Management LLC bought a new position in Paycom Software during the 1st quarter worth $599,000. Acadian Asset Management LLC raised its holdings in Paycom Software by 69.7% in the 1st quarter. Acadian Asset Management LLC now owns 16,965 shares of the software maker's stock valued at $3,703,000 after acquiring an additional 6,966 shares in the last quarter. Finally, Focus Partners Wealth lifted its position in shares of Paycom Software by 220.8% during the 1st quarter. Focus Partners Wealth now owns 3,940 shares of the software maker's stock valued at $861,000 after acquiring an additional 2,712 shares during the period. 87.77% of the stock is 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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