TD Cowen Cuts Paycom Software (NYSE:PAYC) Price Target to $149.00

Paycom Software (NYSE:PAYC) had its price objective lowered by research analysts at TD Cowen from $154.00 to $149.00 in a report issued on Friday,Benzinga reports. The brokerage presently has a “buy” rating on the software maker’s stock. TD Cowen’s target price suggests a potential upside of 15.87% from the company’s previous close.

Several other equities analysts also recently issued reports on the company. Zacks Research upgraded Paycom Software from a “hold” rating to a “strong-buy” rating in a research report on Monday, May 18th. BMO Capital Markets lifted their target price on Paycom Software from $137.00 to $145.00 and gave the company a “market perform” rating in a research note on Thursday, May 7th. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Paycom Software in a research note on Friday, May 1st. BTIG Research increased their price target on Paycom Software from $140.00 to $160.00 and gave the stock a “buy” rating in a research note on Thursday, May 7th. Finally, Citigroup increased their price target on Paycom Software from $120.00 to $136.00 and gave the stock a “neutral” rating in a research note on Thursday, May 7th. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus price target of $159.25.

Paycom Software Stock Performance

NYSE:PAYC traded up $4.12 during mid-day trading on Friday, hitting $128.60. The stock had a trading volume of 222,858 shares, compared to its average volume of 1,441,619. The company has a current ratio of 1.08, a quick ratio of 1.08 and a debt-to-equity ratio of 0.83. The company has a 50 day simple moving average of $132.50 and a 200-day simple moving average of $136.27. The stock has a market capitalization of $6.13 billion, a price-to-earnings ratio of 14.86, a P/E/G ratio of 1.10 and a beta of 0.79. Paycom Software has a 52 week low of $104.90 and a 52 week high of $248.95.

Paycom Software (NYSE:PAYC) last posted its earnings results on Wednesday, May 6th. The software maker reported $3.15 EPS for the quarter, topping the consensus estimate of $2.99 by $0.16. Paycom Software had a net margin of 22.44% and a return on equity of 28.34%. The firm had revenue of $571.80 million during the quarter, compared to analysts’ expectations of $564.37 million. During the same quarter in the prior year, the firm earned $2.80 EPS. Paycom Software’s quarterly revenue was up 7.8% on a year-over-year basis. On average, research analysts expect that Paycom Software will post 9.16 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. Reinhart Partners LLC. boosted its stake in shares of Paycom Software by 887.4% during the 4th quarter. Reinhart Partners LLC. now owns 598,323 shares of the software maker’s stock worth $95,351,000 after acquiring an additional 537,726 shares in the last quarter. Contour Asset Management LLC purchased a new stake in shares of Paycom Software during the fourth quarter valued at $60,333,000. Two Sigma Investments LP boosted its position in shares of Paycom Software by 228.7% in the 3rd quarter. Two Sigma Investments LP now owns 532,124 shares of the software maker’s stock valued at $110,756,000 after purchasing an additional 370,219 shares during the period. Invesco Ltd. increased its stake in Paycom Software by 28.2% in the 4th quarter. Invesco Ltd. now owns 1,559,682 shares of the software maker’s stock worth $248,551,000 after purchasing an additional 343,494 shares in the last quarter. Finally, River Road Asset Management LLC increased its stake in Paycom Software by 481.9% in the 4th quarter. River Road Asset Management LLC now owns 392,403 shares of the software maker’s stock worth $62,533,000 after purchasing an additional 324,970 shares in the last quarter. Institutional investors own 87.77% of the company’s stock.

About Paycom Software

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.