Paycom Software (NYSE:PAYC) Reaches New 52-Week High - Here's Why

Key Points

• Paycom Software reached a new 52-week high of $243.28 and was last trading near $239, supported by strong recent momentum.
• The company exceeded quarterly expectations, reporting $2.78 in adjusted EPS versus $2.38 expected and revenue of $531.2 million versus $513.1 million expected; revenue rose 9.8% year over year.
• Analyst sentiment remains mixed: the consensus rating is “Hold” with an average price target of $214.23, below the stock’s current level, while Paycom declared a quarterly dividend of $0.375 per share.

Shares of Paycom Software, Inc. (NYSE:PAYC - Get Free Report) reached a new 52-week high on Tuesday . The company traded as high as $243.28 and last traded at $239.1360, with a volume of 30724 shares trading hands. The stock had previously closed at $239.10.

Analysts Set New Price Targets

PAYC has been the topic of a number of analyst reports. Guggenheim upped their price target on shares of Paycom Software from $180.00 to $225.00 and gave the stock a "buy" rating in a research note on Thursday, August 6th. Mizuho raised their price objective on shares of Paycom Software from $120.00 to $130.00 and gave the company a "neutral" rating in a research note on Thursday, May 7th. BMO Capital Markets upped their target price on shares of Paycom Software from $145.00 to $208.00 and gave the stock a "market perform" rating in a research note on Thursday, August 6th. Zacks Research upgraded shares of Paycom Software from a "hold" rating to a "strong-buy" rating in a report on Monday, May 18th. Finally, Stifel Nicolaus raised their price target on shares of Paycom Software from $120.00 to $200.00 and gave the company a "hold" rating in a research report on Thursday, August 6th. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and nine have given a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of $214.23.

Paycom Software Stock Up 0.4%

The company has a market capitalization of $10.82 billion, a PE ratio of 25.64, a price-to-earnings-growth ratio of 1.32 and a beta of 0.75. The company's fifty day moving average is $173.53 and its 200-day moving average is $144.39. The company has a debt-to-equity ratio of 1.57, a quick ratio of 1.07 and a current ratio of 1.07.

Paycom Software (NYSE:PAYC - Get Free Report) last issued its earnings results on Wednesday, August 5th. The software maker reported $2.78 earnings per share for the quarter, topping the consensus estimate of $2.38 by $0.40. The company had revenue of $531.20 million during the quarter, compared to the consensus estimate of $513.12 million. Paycom Software had a net margin of 22.78% and a return on equity of 37.06%. Paycom Software's quarterly revenue was up 9.8% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $2.06 EPS. As a group, analysts predict that Paycom Software, Inc. will post 10.65 EPS for the current fiscal year.

Paycom Software Dividend Announcement

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

Insider Activity at Paycom Software

In other news, insider Terrell Shane Hadlock sold 2,577 shares of the firm's stock in a transaction dated Thursday, August 27th. The stock was sold at an average price of $237.60, for a total transaction of $612,295.20. Following the completion of the transaction, the insider owned 70,152 shares in the company, valued at $16,668,115.20. This trade represents a 3.54% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. 13.20% of the stock is owned by company insiders.

Hedge Funds Weigh In On Paycom Software

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Brown Brothers Harriman & Co. increased its stake in Paycom Software by 190.6% in the 4th quarter. Brown Brothers Harriman & Co. now owns 154 shares of the software maker's stock worth $25,000 after acquiring an additional 101 shares during the last quarter. Clearstead Advisors LLC boosted its position in shares of Paycom Software by 140.3% during the 4th quarter. Clearstead Advisors LLC now owns 161 shares of the software maker's stock valued at $26,000 after acquiring an additional 94 shares during the last quarter. CYBER HORNET ETFs LLC purchased a new position in shares of Paycom Software in the second quarter valued at $29,000. Caitlin John LLC purchased a new position in shares of Paycom Software in the second quarter valued at $31,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. bought a new stake in Paycom Software in the second quarter worth $33,000. 87.77% of the stock is owned by institutional investors.

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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