Paycom Software (NYSE:PAYC) Trading Up 8.1% - What's Next?

Key Points

• Paycom shares rose 8.1% in midday trading to about $163.61, exceeding the analyst consensus price target of $159.75. Trading volume was significantly below average.
• Analysts maintain a generally positive view, with one Strong Buy, five Buy, and eight Hold ratings, resulting in a consensus “Moderate Buy” rating.
• Paycom exceeded quarterly expectations, reporting $3.15 in EPS versus $2.99 expected and $571.8 million in revenue, up 7.8% year over year. The company also pays a quarterly dividend of $0.375 per share, yielding approximately 0.9%.

Shares of Paycom Software, Inc. (NYSE:PAYC - Get Free Report) were up 8.1% during mid-day trading on Tuesday . The stock traded as high as $161.90 and last traded at $163.6080. 116,622 shares traded hands during trading, a decline of 91% from the average session volume of 1,350,314 shares. The stock had previously closed at $151.30.

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on PAYC shares. Citigroup lifted their price objective on Paycom Software from $120.00 to $136.00 and gave the company a "neutral" rating in a research note on Thursday, May 7th. BTIG Research increased their price objective on shares of Paycom Software from $140.00 to $160.00 and gave the company a "buy" rating in a research report on Thursday, May 7th. BMO Capital Markets raised their price target on shares of Paycom Software from $137.00 to $145.00 and gave the company a "market perform" rating in a research report on Thursday, May 7th. TD Cowen dropped their price target on Paycom Software from $154.00 to $149.00 and set a "buy" rating on the stock in a research note on Friday, June 26th. Finally, Weiss Ratings raised shares of Paycom Software from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Thursday, July 16th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and eight have assigned a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $159.75.

Paycom Software Stock Performance

The company has a debt-to-equity ratio of 0.83, a current ratio of 1.08 and a quick ratio of 1.08. The business has a 50-day simple moving average of $136.97 and a 200 day simple moving average of $133.09. The firm has a market cap of $7.74 billion, a PE ratio of 18.77, a PEG ratio of 1.23 and a beta of 0.80.

Paycom Software (NYSE:PAYC - Get Free Report) last posted its quarterly earnings data on Wednesday, May 6th. The software maker reported $3.15 EPS for the quarter, topping the consensus estimate of $2.99 by $0.16. The firm had revenue of $571.80 million for the quarter, compared to the consensus estimate of $564.37 million. Paycom Software had a return on equity of 28.34% and a net margin of 22.44%.The business's revenue for the quarter was up 7.8% compared to the same quarter last year. During the same quarter last year, the company earned $2.80 earnings per share. Equities research analysts forecast that Paycom Software, Inc. will post 9.37 EPS for the current year.

Paycom Software Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Monday, June 8th. Shareholders of record on Tuesday, May 26th were paid a dividend of $0.375 per share. The ex-dividend date was Tuesday, May 26th. This represents a $1.50 dividend on an annualized basis and a yield of 0.9%. Paycom Software's dividend payout ratio (DPR) is presently 17.34%.

Hedge Funds Weigh In On Paycom Software

A number of hedge funds have recently modified their holdings of the company. Willis Investment Counsel lifted its position in shares of Paycom Software by 122.2% in the fourth quarter. Willis Investment Counsel now owns 22,100 shares of the software maker's stock valued at $3,522,000 after acquiring an additional 12,156 shares in the last quarter. Berkeley Inc lifted its holdings in shares of Paycom Software by 47.5% in the fourth quarter. Berkeley Inc now owns 40,794 shares of the software maker's stock worth $6,501,000 after buying an additional 13,140 shares in the last quarter. Harbor Capital Advisors Inc. purchased a new position in shares of Paycom Software in the fourth quarter worth $1,911,000. Northwestern Mutual Wealth Management Co. boosted its position in shares of Paycom Software by 1,151.4% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 170,854 shares of the software maker's stock worth $27,227,000 after acquiring an additional 157,201 shares during the last quarter. Finally, Robeco Institutional Asset Management B.V. boosted its position in shares of Paycom Software by 230.9% during the fourth quarter. Robeco Institutional Asset Management B.V. now owns 341,286 shares of the software maker's stock worth $54,387,000 after acquiring an additional 238,155 shares during the last quarter. 87.77% of the stock is currently owned by institutional investors.

About Paycom Software

Paycom Software, Inc NYSE: PAYC is a cloud-based human capital management (HCM) software provider that delivers an end-to-end solution for human resources, payroll, talent acquisition, time and labor management, and talent management. Its single-database platform enables organizations to process payroll, track time, administer benefits, and manage recruiting and employee development through a unified system. Paycom's software is designed to streamline administrative tasks, improve data accuracy, and provide real-time reporting and analytics to support strategic HR decisions.

The company's core offerings include payroll processing with built-in tax compliance, employee self-service functionality, automated time tracking, and customizable talent acquisition tools that allow employers to create and post job requisitions, screen candidates, and conduct onboarding electronically.

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