Paycom Software (NYSE:PAYC) Sets New 52-Week High - Should You Buy?

Key Points

• Paycom shares reached a new 52-week high of $264.49, significantly above their 50-day and 200-day moving averages. The stock’s consensus analyst rating remains “Hold,” with an average price target of $219.79.
• Paycom exceeded quarterly expectations, reporting $2.78 in EPS versus the $2.38 estimate and $531.2 million in revenue, up 9.8% year over year. Net margin was 22.78% and return on equity was 37.06%.
• The company pays a quarterly dividend of $0.375 per share, or $1.50 annualized, representing a 0.6% yield. Institutional investors own approximately 87.8% of Paycom’s outstanding shares.

Paycom Software, Inc. (NYSE:PAYC - Get Free Report)'s share price reached a new 52-week high on Wednesday. The stock traded as high as $264.49 and last traded at $262.85, with a volume of 788,089 shares. The stock had previously closed at $253.00.

Analysts Set New Price Targets

A number of equities analysts have recently weighed in on PAYC shares. Guggenheim boosted their price objective on shares of Paycom Software from $180.00 to $225.00 and gave the company a "buy" rating in a research report on Thursday, August 6th. Bank of America assumed coverage on Paycom Software in a research report on Tuesday, September 29th. They set an "underperform" rating and a $200.00 target price on the stock. Barclays upped their price objective on shares of Paycom Software from $210.00 to $250.00 and gave the company an "equal weight" rating in a research note on Tuesday, October 13th. Citigroup increased their price target on shares of Paycom Software from $136.00 to $194.00 and gave the stock a "neutral" rating in a research note on Friday, August 7th. Finally, JPMorgan Chase & Co. lifted their target price on Paycom Software from $140.00 to $264.00 and gave the company a "neutral" rating in a report on Tuesday, August 25th. Five investment analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Paycom Software has a consensus rating of "Hold" and a consensus price target of $219.79.

Paycom Software Price Performance

The firm has a market capitalization of $11.85 billion, a price-to-earnings ratio of 27.93, a price-to-earnings-growth ratio of 1.35 and a beta of 0.82. The company's fifty day moving average price is $228.59 and its 200 day moving average price is $170.89. 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 released its quarterly earnings results on Wednesday, August 5th. The software maker reported $2.78 EPS for the quarter, topping the consensus estimate of $2.38 by $0.40. Paycom Software had a net margin of 22.78% and a return on equity of 37.06%. The business had revenue of $531.20 million during the quarter, compared to analyst estimates of $513.12 million. During the same quarter in the prior year, the firm earned $2.06 earnings per share. The company's quarterly revenue was up 9.8% on a year-over-year basis. Equities research analysts expect that Paycom Software, Inc. will post 10.80 earnings per share for the current year.

Paycom Software Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 8th. Investors of record on Monday, August 24th were issued a dividend of $0.3750 per share. This represents a $1.50 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date was Monday, August 24th. Paycom Software's dividend payout ratio (DPR) is presently 15.94%.

Insider Activity at Paycom Software

In other news, insider Shane Hadlock sold 241 shares of the firm's stock in a transaction on Friday, August 28th. The stock was sold at an average price of $240.07, for a total transaction of $57,856.87. Following the completion of the sale, the insider directly owned 69,911 shares of the company's stock, valued at $16,783,533.77. This trade represents a 0.34% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Company insiders own 13.20% of the company's stock.

Institutional Investors Weigh In On Paycom Software

Large investors have recently made changes to their positions in the company. BlackRock Inc. bought a new position in Paycom Software in the second quarter valued at approximately $632,460,000. Reinhart Partners LLC. boosted its position in Paycom Software by 20.1% during the 2nd quarter. Reinhart Partners LLC. now owns 1,219,906 shares of the software maker's stock worth $153,320,000 after acquiring an additional 204,191 shares during the last quarter. Robeco Institutional Asset Management B.V. boosted its position in Paycom Software by 108.1% during the 3rd quarter. Robeco Institutional Asset Management B.V. now owns 308,393 shares of the software maker's stock worth $67,122,000 after acquiring an additional 160,185 shares during the last quarter. Dimensional Fund Advisors LP raised its holdings in shares of Paycom Software by 10.1% in the first quarter. Dimensional Fund Advisors LP now owns 538,376 shares of the software maker's stock valued at $65,435,000 after purchasing an additional 49,460 shares during the last quarter. Finally, Bank of New York Mellon Corp acquired a new position in Paycom Software during the second quarter worth $42,858,000. Institutional investors and hedge funds own 87.77% of the company's stock.

About Paycom Software

Paycom Software, Inc is a provider of cloud-based human capital management (HCM) software designed to help businesses manage employee-related processes through a unified platform. Its solutions support payroll, human resources, talent acquisition and management, time and labor management, compliance, and employee engagement.

The company's software is intended to allow employers and employees to enter and manage workforce information within a single system. Its offerings include payroll processing, benefits administration, expense management, scheduling, performance management, learning, and recruiting tools.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.