Paycom Software (NYSE:PAYC) Upgraded by TD Cowen to Buy Rating

Key Points

• Paycom Software has been upgraded from a "hold" rating to a "buy" rating by TD Cowen, with a price target of $258.00, reflecting a potential upside of 19.27% from its current price.
• The company reported earnings of $2.06 per share for the last quarter, surpassing analyst expectations of $1.78, and saw revenue grow by 10.5% year-over-year.
• Currently, Paycom Software has a consensus rating of "Hold" among analysts, with a target price averaging $239.42.

Paycom Software (NYSE:PAYC - Get Free Report) was upgraded by research analysts at TD Cowen from a "hold" rating to a "buy" rating in a report issued on Monday, MarketBeat.com reports. The brokerage currently has a $258.00 price target on the software maker's stock. TD Cowen's price objective suggests a potential upside of 19.27% from the stock's current price.

Several other research analysts have also issued reports on the stock. Cantor Fitzgerald raised shares of Paycom Software to a "hold" rating in a research note on Thursday, September 11th. Barclays raised their target price on shares of Paycom Software from $240.00 to $250.00 and gave the company an "equal weight" rating in a research note on Thursday, August 7th. BMO Capital Markets raised their target price on shares of Paycom Software from $244.00 to $258.00 and gave the company a "market perform" rating in a research note on Thursday, August 7th. KeyCorp raised their target price on shares of Paycom Software from $285.00 to $290.00 and gave the company an "overweight" rating in a research note on Thursday, August 7th. Finally, JPMorgan Chase & Co. raised their target price on shares of Paycom Software from $215.00 to $235.00 and gave the company a "neutral" rating in a research note on Thursday, August 7th. Three research analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company's stock. Based on data from MarketBeat.com, Paycom Software presently has a consensus rating of "Hold" and a consensus target price of $239.42.

Paycom Software Stock Down 0.1%

Shares of NYSE:PAYC opened at $216.32 on Monday. Paycom Software has a 12 month low of $158.03 and a 12 month high of $267.76. The company's 50-day moving average price is $225.68 and its two-hundred day moving average price is $229.73. The firm has a market cap of $12.52 billion, a P/E ratio of 29.27, a P/E/G ratio of 2.38 and a beta of 0.81.

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

Insider Activity

In other news, insider Bradley Scott Smith sold 1,500 shares of Paycom Software stock in a transaction that occurred on Friday, September 12th. The shares were sold at an average price of $223.27, for a total value of $334,905.00. Following the sale, the insider directly owned 24,533 shares in the company, valued at $5,477,482.91. This trade represents a 5.76% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 10.90% of the stock is owned by company insiders.

Institutional Trading of Paycom Software

Hedge funds and other institutional investors have recently made changes to their positions in the business. von Borstel & Associates Inc. acquired a new stake in shares of Paycom Software in the first quarter valued at approximately $27,000. SouthState Corp acquired a new stake in shares of Paycom Software in the first quarter valued at approximately $27,000. CYBER HORNET ETFs LLC acquired a new stake in shares of Paycom Software in the second quarter valued at approximately $29,000. Golden State Wealth Management LLC raised its holdings in shares of 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 last quarter. Finally, MassMutual Private Wealth & Trust FSB raised its holdings in shares of Paycom Software by 135.9% in the first quarter. MassMutual Private Wealth & Trust FSB now owns 151 shares of the software maker's stock valued at $33,000 after purchasing an additional 87 shares during the last quarter. 87.77% of the stock is currently owned by institutional investors and hedge funds.

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.

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