Paycom Software (NYSE:PAYC) Reaches New 1-Year High - Here's What Happened

Key Points

• Paycom Software shares reached a new 52-week high, trading as high as $247.78 and rising 3.6%, with the company valued at approximately $11.16 billion.
• Recent quarterly results exceeded expectations: Paycom reported $2.78 in EPS versus a $2.38 estimate and revenue of $531.2 million, up 9.8% year over year.
• Analyst sentiment remains mixed, with an average “Hold” rating and a $219.79 target price, despite several firms raising their targets to between $280 and $286.

Paycom Software, Inc. (NYSE:PAYC - Get Free Report)'s stock price reached a new 52-week high on Thursday. The stock traded as high as $247.78 and last traded at $246.3170, with a volume of 90,511 shares trading hands. The stock had previously closed at $239.00.

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on PAYC shares. UBS Group raised their price objective on Paycom Software from $205.00 to $285.00 and gave the stock a "buy" rating in a research report on Tuesday, September 1st. TD Cowen upped their target price on Paycom Software from $244.00 to $286.00 and gave the company a "buy" rating in a report on Friday, October 2nd. KeyCorp increased their price target on shares of Paycom Software from $270.00 to $280.00 and gave the stock an "overweight" rating in a research report on Monday, September 21st. Cantor Fitzgerald increased their price target on shares of Paycom Software from $135.00 to $195.00 and gave the stock a "neutral" rating in a research report on Thursday, August 6th. Finally, Citigroup boosted their price objective on shares of Paycom Software from $136.00 to $194.00 and gave the company a "neutral" rating in a research report on Friday, August 7th. Five equities research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, Paycom Software has an average rating of "Hold" and an average target price of $219.79.

Paycom Software Trading Up 3.6%

The business has a 50-day moving average of $225.33 and a 200-day moving average of $167.09. The company has a quick ratio of 1.07, a current ratio of 1.07 and a debt-to-equity ratio of 1.57. The stock has a market cap of $11.16 billion, a price-to-earnings ratio of 26.31, a PEG ratio of 1.28 and a beta of 0.82.

Paycom Software (NYSE:PAYC - Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The software maker reported $2.78 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.38 by $0.40. Paycom Software had a return on equity of 37.06% and a net margin of 22.78%. The business had revenue of $531.20 million during the quarter, compared to analyst estimates of $513.12 million. During the same period in the previous year, the company earned $2.06 EPS. The firm's revenue was up 9.8% on a year-over-year basis. As a group, research analysts forecast that Paycom Software, Inc. will post 10.64 earnings per share for the current year.

Paycom Software Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 8th. Shareholders of record on Monday, August 24th were given a $0.3750 dividend. This represents a $1.50 annualized dividend and a yield of 0.6%. The ex-dividend date of this dividend was Monday, August 24th. Paycom Software's payout ratio is currently 15.94%.

Insider Activity at Paycom Software

In other news, insider Shane Hadlock sold 2,577 shares of the stock in a transaction on Thursday, August 27th. The shares were sold at an average price of $237.60, for a total transaction of $612,295.20. Following the transaction, the insider owned 70,152 shares in the company, valued at $16,668,115.20. This represents a 3.54% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 13.20% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Paycom Software

Large investors have recently bought and sold shares of the business. Elevation Wealth Partners LLC lifted its position in Paycom Software by 76.5% during the 3rd quarter. Elevation Wealth Partners LLC now owns 233 shares of the software maker's stock worth $51,000 after acquiring an additional 101 shares during the last quarter. Caitlin John LLC acquired a new stake in Paycom Software in the 2nd quarter valued at approximately $31,000. Mitsubishi UFJ Asset Management Co. Ltd. bought a new position in Paycom Software in the 2nd quarter worth approximately $33,000. EFG International AG bought a new position in Paycom Software in the 2nd quarter worth approximately $36,000. Finally, Trust Co. of Vermont acquired a new position in shares of Paycom Software during the second quarter worth approximately $40,000. 87.77% of the stock is currently owned by institutional investors.

Paycom Software Company Profile

Paycom Software, Inc develops and provides cloud-based human capital management (HCM) software for businesses. Its platform is designed to help employers manage payroll and other workforce processes through a unified system, reducing the need for separate applications and manual data entry.

The company's products and services include payroll processing, tax management, time and labor management, talent acquisition, onboarding, talent management, employee benefits administration, expense management, and workforce analytics.

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