Paycom Software (NYSE:PAYC) Reaches New 12-Month High – Here’s What Happened

Paycom Software, Inc. (NYSE:PAYC) shares reached a new 52-week high during trading on Thursday. The company traded as high as $247.78 and last traded at $246.3170, with a volume of 90,511 shares changing hands. The stock had previously closed at $239.00.

Analysts Set New Price Targets

Several equities research analysts have issued reports on the company. BMO Capital Markets raised their target price on Paycom Software from $145.00 to $208.00 and gave the stock a “market perform” rating in a research note on Thursday, August 6th. Citigroup increased their price target on Paycom Software from $136.00 to $194.00 and gave the stock a “neutral” rating in a report on Friday, August 7th. Bank of America initiated coverage on Paycom Software in a research report on Tuesday, September 29th. They set an “underperform” rating and a $200.00 price objective for the company. Stifel Nicolaus raised their price objective on Paycom Software from $120.00 to $200.00 and gave the stock a “hold” rating in a research report on Thursday, August 6th. Finally, JPMorgan Chase & Co. boosted their price objective on shares of Paycom Software from $140.00 to $264.00 and gave the company a “neutral” rating in a report on Tuesday, August 25th. Five research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Paycom Software presently has a consensus rating of “Hold” and a consensus target price of $219.79.

Paycom Software Stock Performance

The company has a quick ratio of 1.07, a current ratio of 1.07 and a debt-to-equity ratio of 1.57. The firm has a 50-day moving average price of $226.79 and a 200 day moving average price of $168.62. The firm has a market capitalization of $11.34 billion, a PE ratio of 26.74, a price-to-earnings-growth ratio of 1.37 and a beta of 0.82.

Paycom Software (NYSE:PAYC) last posted its earnings results on Wednesday, August 5th. The software maker reported $2.78 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.38 by $0.40. Paycom Software had a return on equity of 37.06% and a net margin of 22.78%. The firm had revenue of $531.20 million for the quarter, compared to analyst estimates of $513.12 million. During the same quarter in the prior year, the company earned $2.06 EPS. Paycom Software’s revenue was up 9.8% on a year-over-year basis. Research analysts expect that Paycom Software, Inc. will post 10.64 earnings per share for the current year.

Paycom Software Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, September 8th. Stockholders of record on Monday, August 24th were given a dividend of $0.3750 per share. This represents a $1.50 annualized dividend and a dividend yield of 0.6%. The ex-dividend date of this dividend was Monday, August 24th. Paycom Software’s dividend payout ratio is currently 15.94%.

Insider Activity at Paycom Software

In related news, insider Shane Hadlock sold 2,577 shares of Paycom Software stock in a transaction that occurred on Thursday, August 27th. The shares were sold at an average price of $237.60, for a total value of $612,295.20. Following the completion of the transaction, the insider owned 70,152 shares in the company, valued at approximately $16,668,115.20. The trade was a 3.54% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 13.20% of the company’s stock.

Hedge Funds Weigh In On Paycom Software

Several hedge funds and other institutional investors have recently added to or reduced their stakes in PAYC. Archford Capital Strategies LLC raised its stake in shares of Paycom Software by 1.1% in the second quarter. Archford Capital Strategies LLC now owns 4,684 shares of the software maker’s stock valued at $589,000 after acquiring an additional 49 shares in the last quarter. CX Institutional grew its stake in Paycom Software by 4.7% during the 3rd quarter. CX Institutional now owns 1,399 shares of the software maker’s stock worth $304,000 after purchasing an additional 63 shares in the last quarter. Versant Capital Management Inc grew its stake in Paycom Software by 2.6% during the 3rd quarter. Versant Capital Management Inc now owns 2,689 shares of the software maker’s stock worth $585,000 after purchasing an additional 69 shares in the last quarter. Elevation Wealth Partners LLC increased its holdings in Paycom Software by 76.5% during the 3rd quarter. Elevation Wealth Partners LLC now owns 233 shares of the software maker’s stock worth $51,000 after purchasing an additional 101 shares during the period. Finally, EverSource Wealth Advisors LLC increased its holdings in Paycom Software by 32.1% during the 1st quarter. EverSource Wealth Advisors LLC now owns 424 shares of the software maker’s stock worth $52,000 after purchasing an additional 103 shares during the period. Hedge funds and other institutional investors own 87.77% of the company’s stock.

About Paycom Software

Paycom Software, Inc develops and provides cloud-based human capital management (HCM) software for businesses. Its platform is designed to help employers manage payroll and other workforce processes through a unified system, reducing the need for separate applications and manual data entry.

The company’s products and services include payroll processing, tax management, time and labor management, talent acquisition, onboarding, talent management, employee benefits administration, expense management, and workforce analytics.