Paycom Software (NYSE:PAYC) Reaches New 52-Week High Following Analyst Upgrade

Key Points

• Paycom shares reached a new 52-week high after JPMorgan raised its price target from $140 to $264, though it maintained a neutral rating. The stock traded as high as $233.10, above the analyst consensus target of $208.08.
• Analysts remain broadly cautious, with MarketBeat reporting an overall “Hold” rating from one Strong Buy, five Buy, and nine Hold recommendations; several firms recently raised their targets, including KeyCorp to $270 and TD Cowen to $244.
• Paycom’s latest quarterly results exceeded expectations, with adjusted EPS of $2.78 versus a $2.38 estimate and revenue of $531.2 million. Revenue rose 9.8% year over year, and the company declared a quarterly dividend of $0.375 per share.

Paycom Software, Inc. (NYSE:PAYC - Get Free Report)'s share price reached a new 52-week high on Tuesday after JPMorgan Chase & Co. raised their price target on the stock from $140.00 to $264.00. JPMorgan Chase & Co. currently has a neutral rating on the stock. Paycom Software traded as high as $233.10 and last traded at $231.7620, with a volume of 20370 shares traded. The stock had previously closed at $229.62.

A number of other equities research analysts have also recently weighed in on the company. Citigroup boosted their price objective on Paycom Software from $136.00 to $194.00 and gave the company a "neutral" rating in a research note on Friday, August 7th. Weiss Ratings upgraded Paycom Software from a "hold (c-)" rating to a "hold (c)" rating in a research note on Tuesday, August 11th. TD Cowen increased their target price on shares of Paycom Software from $149.00 to $244.00 and gave the company a "buy" rating in a report on Thursday, August 6th. Barclays upped their target price on Paycom Software from $154.00 to $210.00 and gave the company an "equal weight" rating in a research note on Thursday, August 6th. Finally, KeyCorp raised their price target on Paycom Software from $195.00 to $270.00 and gave the stock an "overweight" rating in a research note on Thursday, August 6th. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and nine have issued a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Hold" and an average target price of $208.08.

Hedge Funds Weigh In On Paycom Software

A number of institutional investors have recently added to or reduced their stakes in the company. Brown Brothers Harriman & Co. grew its stake in Paycom Software by 190.6% in the fourth quarter. Brown Brothers Harriman & Co. now owns 154 shares of the software maker's stock worth $25,000 after purchasing an additional 101 shares in the last quarter. Clearstead Advisors LLC raised its stake in Paycom Software by 140.3% during the fourth quarter. Clearstead Advisors LLC now owns 161 shares of the software maker's stock valued at $26,000 after buying an additional 94 shares in the last quarter. CYBER HORNET ETFs LLC bought a new position in Paycom Software during the 2nd quarter worth approximately $29,000. Caitlin John LLC acquired a new position in shares of Paycom Software in the 2nd quarter worth approximately $31,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. acquired a new position in shares of Paycom Software in the 2nd quarter worth approximately $33,000. Institutional investors and hedge funds own 87.77% of the company's stock.

Paycom Software Stock Up 1.1%

The company has a debt-to-equity ratio of 1.57, a quick ratio of 1.07 and a current ratio of 1.07. The firm has a market capitalization of $10.46 billion, a P/E ratio of 24.67, a P/E/G ratio of 1.29 and a beta of 0.75. The stock has a fifty day moving average price of $162.48 and a two-hundred day moving average price of $140.64.

Paycom Software (NYSE:PAYC - Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The software maker reported $2.78 EPS for the quarter, beating the consensus estimate of $2.38 by $0.40. The business had revenue of $531.20 million during the quarter, compared to analyst estimates of $513.12 million. Paycom Software had a net margin of 22.78% and a return on equity of 37.06%. The company's quarterly revenue was up 9.8% on a year-over-year basis. During the same period in the previous year, the business posted $2.06 EPS. Research analysts forecast that Paycom Software, Inc. will post 10.48 EPS for the current year.

Paycom Software Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 8th. Shareholders of record on Monday, August 24th will be given a $0.375 dividend. The ex-dividend date of this dividend is Monday, August 24th. This represents a $1.50 annualized dividend and a yield of 0.6%. Paycom Software's dividend payout ratio (DPR) is currently 15.94%.

Paycom Software Company Profile

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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