Paycom Software, Inc. (NYSE:PAYC) Receives Average Rating of “Hold” from Analysts

Shares of Paycom Software, Inc. (NYSE:PAYC) have been assigned an average recommendation of “Hold” from the seventeen ratings firms that are covering the company, Marketbeat Ratings reports. One investment analyst has rated the stock with a sell rating, eleven have issued a hold rating and five have given a buy rating to the company. The average 12 month price target among brokers that have issued a report on the stock in the last year is $168.5714.

Several research analysts have commented on the stock. JPMorgan Chase & Co. decreased their target price on shares of Paycom Software from $235.00 to $220.00 and set a “neutral” rating for the company in a report on Thursday, November 6th. Mizuho decreased their price objective on Paycom Software from $180.00 to $120.00 and set a “neutral” rating for the company in a research report on Thursday, February 12th. Cantor Fitzgerald lowered their price objective on shares of Paycom Software from $135.00 to $115.00 and set a “neutral” rating on the stock in a research report on Thursday, February 12th. Barclays cut their target price on shares of Paycom Software from $185.00 to $140.00 and set an “equal weight” rating for the company in a research report on Thursday, February 12th. Finally, Citigroup dropped their price target on shares of Paycom Software from $185.00 to $128.00 and set a “neutral” rating on the stock in a research note on Friday, February 13th.

Paycom Software Stock Up 2.9%

Shares of NYSE PAYC opened at $132.08 on Friday. The stock’s fifty day simple moving average is $140.51 and its 200 day simple moving average is $174.87. The stock has a market capitalization of $7.17 billion, a price-to-earnings ratio of 16.33, a PEG ratio of 1.39 and a beta of 0.80. Paycom Software has a 52-week low of $104.90 and a 52-week high of $267.76.

Paycom Software (NYSE:PAYC) last announced its earnings results on Wednesday, February 11th. The software maker reported $2.45 EPS for the quarter, beating the consensus estimate of $2.44 by $0.01. The business had revenue of $544.30 million during the quarter, compared to the consensus estimate of $542.79 million. Paycom Software had a return on equity of 24.25% and a net margin of 22.10%.Paycom Software’s revenue was up 10.2% compared to the same quarter last year. During the same period in the prior year, the business posted $2.32 earnings per share. As a group, analysts anticipate that Paycom Software will post 7.15 earnings per share for the current year.

Paycom Software Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, March 23rd. Stockholders of record on Monday, March 9th will be paid a dividend of $0.375 per share. The ex-dividend date of this dividend is Monday, March 9th. This represents a $1.50 dividend on an annualized basis and a dividend yield of 1.1%. Paycom Software’s dividend payout ratio (DPR) is 18.54%.

Insider Activity

In related news, CFO Robert D. Foster sold 1,300 shares of the business’s stock in a transaction that occurred on Wednesday, December 10th. The stock was sold at an average price of $162.66, for a total value of $211,458.00. Following the completion of the sale, the chief financial officer owned 14,747 shares of the company’s stock, valued at approximately $2,398,747.02. The trade was a 8.10% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. 10.90% of the stock is currently owned by corporate insiders.

Institutional Trading of Paycom Software

Institutional investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. raised its holdings in shares of Paycom Software by 3.2% during the 3rd quarter. Vanguard Group Inc. now owns 5,802,788 shares of the software maker’s stock valued at $1,207,792,000 after purchasing an additional 179,218 shares in the last quarter. State Street Corp boosted its holdings in Paycom Software by 0.4% in the fourth quarter. State Street Corp now owns 2,165,546 shares of the software maker’s stock worth $345,101,000 after purchasing an additional 8,419 shares in the last quarter. Baillie Gifford & Co. increased its position in Paycom Software by 10.3% during the third quarter. Baillie Gifford & Co. now owns 1,708,662 shares of the software maker’s stock worth $355,641,000 after buying an additional 158,967 shares during the last quarter. First Trust Advisors LP raised its holdings in Paycom Software by 19.9% during the fourth quarter. First Trust Advisors LP now owns 1,665,529 shares of the software maker’s stock valued at $265,419,000 after buying an additional 275,954 shares in the last quarter. Finally, Geode Capital Management LLC lifted its position in shares of Paycom Software by 5.3% in the second quarter. Geode Capital Management LLC now owns 1,661,685 shares of the software maker’s stock worth $383,265,000 after buying an additional 83,154 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 (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.