Bank of America Initiates Coverage on Paycom Software (NYSE:PAYC)

Analysts at Bank of America initiated coverage on shares of Paycom Software (NYSE:PAYC) in a report issued on Tuesday. The firm set an “underperform” rating and a $200.00 price target on the software maker’s stock. Bank of America‘s price objective suggests a potential downside of 7.60% from the stock’s previous close.

PAYC has been the topic of a number of other reports. UBS Group boosted their target price on shares of Paycom Software from $205.00 to $285.00 and gave the stock a “buy” rating in a research report on Tuesday, September 1st. TD Cowen boosted their price objective on shares of Paycom Software from $149.00 to $244.00 and gave the stock a “buy” rating in a report on Thursday, August 6th. Wall Street Zen cut Paycom Software from a “buy” rating to a “hold” rating in a research note on Sunday, September 6th. Guggenheim increased their price target on Paycom Software from $180.00 to $225.00 and gave the company a “buy” rating in a report on Thursday, August 6th. Finally, BTIG Research raised their price objective on Paycom Software from $160.00 to $230.00 and gave the company a “buy” rating in a research note on Thursday, August 6th. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $213.93.

Paycom Software Stock Down 1.9%

Shares of PAYC traded down $4.14 during midday trading on Tuesday, reaching $216.44. 45,020 shares of the company were exchanged, compared to its average volume of 1,233,279. Paycom Software has a 1-year low of $104.90 and a 1-year high of $244.98. The stock has a 50-day moving average price of $208.67 and a 200-day moving average price of $158.38. The company has a current ratio of 1.07, a quick ratio of 1.07 and a debt-to-equity ratio of 1.57. The company has a market cap of $9.75 billion, a price-to-earnings ratio of 22.96, a P/E/G ratio of 1.23 and a beta of 0.78.

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, beating analysts’ consensus estimates of $2.38 by $0.40. The business had revenue of $531.20 million during the quarter, compared to analyst estimates of $513.12 million. Paycom Software had a return on equity of 37.06% and a net margin of 22.78%.The company’s revenue for the quarter was up 9.8% compared to the same quarter last year. During the same quarter last year, the firm earned $2.06 earnings per share. Research analysts expect that Paycom Software will post 10.64 earnings per share for the current year.

Insider Buying and Selling

In other news, insider Shane Hadlock sold 2,577 shares of Paycom Software stock in a transaction that occurred on Thursday, August 27th. The stock was 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. This trade represents a 3.54% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 13.20% 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. BlackRock Inc. acquired a new position in shares of Paycom Software during the second quarter valued at approximately $632,460,000. Reinhart Partners LLC. raised its holdings 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 buying an additional 204,191 shares during the period. Goldman Sachs Group Inc. boosted its position in shares of Paycom Software by 5.2% in the fourth quarter. Goldman Sachs Group Inc. now owns 552,470 shares of the software maker’s stock worth $88,042,000 after buying an additional 27,069 shares during the period. Dimensional Fund Advisors LP grew its position in Paycom Software by 10.1% during 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 in the last quarter. Finally, River Road Asset Management LLC raised its stake in shares of Paycom Software by 481.9% during 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 is a provider of cloud-based payroll and human capital management (HCM) software for businesses. Its platform is designed to help organizations manage employee data and payroll processes through a unified system, serving small, midsize and larger employers primarily in the United States.

The company’s products and services include payroll processing, tax management, time and labor management, talent acquisition, onboarding, employee learning, performance management, compensation planning, benefits administration, expense management and compliance tools.