Paycom Software (NYSE:PAYC) Given New $250.00 Price Target at Barclays

Key Points

• Barclays has raised its target price for Paycom Software stock from $240.00 to $250.00 while maintaining an "equal weight" rating, indicating a potential upside of 1.13% from the previous close.
• In recent evaluations, various analysts have boosted their target prices, with significant increases from Stifel Nicolaus, BMO Capital Markets, and KeyCorp, showing overall positive sentiment towards the stock.
• Paycom Software's earnings results surpassed expectations, reporting $2.06 per share against an estimate of $1.78, alongside a 10.5% year-over-year revenue growth to $483.60 million.

Paycom Software (NYSE:PAYC - Get Free Report) had its target price lifted by stock analysts at Barclays from $240.00 to $250.00 in a report released on Thursday,Benzinga reports. The firm currently has an "equal weight" rating on the software maker's stock. Barclays's price objective would suggest a potential upside of 9.03% from the company's current price.

Several other equities research analysts also recently weighed in on PAYC. Piper Sandler increased their target price on shares of Paycom Software from $224.00 to $246.00 and gave the company a "neutral" rating in a research note on Thursday, May 8th. Needham & Company LLC reissued a "hold" rating on shares of Paycom Software in a research report on Thursday, May 8th. KeyCorp increased their price objective on shares of Paycom Software from $245.00 to $270.00 and gave the stock an "overweight" rating in a research report on Thursday, May 8th. Stifel Nicolaus increased their price objective 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. Finally, BMO Capital Markets increased their price target on Paycom Software from $244.00 to $258.00 and gave the stock a "market perform" rating in a report on Thursday. Eleven investment analysts have rated the stock with a hold rating and one has given a buy rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $234.80.

Paycom Software Stock Performance

PAYC stock traded down $4.09 during midday trading on Thursday, reaching $229.29. 672,064 shares of the company traded hands, compared to its average volume of 608,893. Paycom Software has a 52-week low of $152.46 and a 52-week high of $267.76. The business has a 50 day moving average of $236.39 and a 200-day moving average of $227.14. The firm has a market capitalization of $13.26 billion, a price-to-earnings ratio of 31.03, a P/E/G ratio of 2.57 and a beta of 0.81.

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

Insiders Place Their Bets

In other news, COO Randall Peck sold 890 shares of the firm's stock in a transaction on Wednesday, June 4th. The stock was sold at an average price of $263.21, for a total transaction of $234,256.90. Following the transaction, the chief operating officer owned 49,394 shares in the company, valued at approximately $13,000,994.74. This trade represents a 1.77% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, CEO Chad R. Richison sold 26,426 shares of the firm's stock in a transaction on Monday, May 12th. The shares were sold at an average price of $255.52, for a total value of $6,752,371.52. Following the transaction, the chief executive officer owned 3,277,249 shares in the company, valued at approximately $837,402,664.48. This represents a 0.80% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 52,016 shares of company stock worth $13,514,208 in the last ninety days. 10.90% of the stock is owned by company insiders.

Hedge Funds Weigh In On Paycom Software

Several institutional investors have recently bought and sold shares of the business. Brighton Jones LLC purchased a new position in shares of Paycom Software in the 4th quarter valued at $638,000. O Shaughnessy Asset Management LLC increased its holdings in shares of Paycom Software by 46.0% in the 4th quarter. O Shaughnessy Asset Management LLC now owns 2,254 shares of the software maker's stock valued at $462,000 after acquiring an additional 710 shares during the period. Franklin Resources Inc. grew its stake in Paycom Software by 27.4% in the fourth quarter. Franklin Resources Inc. now owns 33,683 shares of the software maker's stock valued at $6,904,000 after purchasing an additional 7,250 shares during the last quarter. World Investment Advisors purchased a new position in Paycom Software in the fourth quarter valued at about $261,000. Finally, ExodusPoint Capital Management LP purchased a new position in Paycom Software in the fourth quarter valued at about $1,355,000. 87.77% of the stock is owned by hedge funds and other institutional investors.

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.