Equities researchers at Bank of America Corporation began coverage on shares of Paycom Software, Inc. (NYSE:PAYC) in a research note issued to investors on Monday, November 6th, MarketBeat reports. The firm set a “buy” rating and a $92.00 price target on the software maker’s stock. Bank of America Corporation’s price objective suggests a potential upside of 7.49% from the company’s current price.
The analysts wrote, “CSLT continues to face churn headwinds from legacy transparency customers. Management readily admits the market for standalone transparency solutions has eroded. Transparency-only customers now account for 23% of annualized recurring revenue (ARR). Management’s goal is to reduce that to less than 15% of total ARR by 4Q18. ARR stands at $157 million as of the end of 3Q17 and probably needs to reach about $165 million by the end of 4Q17 in order for the company to achieve our revised 2018 revenue estimate. In 3Q17, CSLT added 26 new customer logos, but lost 11 customers. More than half of new logos came from the Anthem Engage partnership. The company now has over 255 customers, including 80 Fortune 500 customers. Also, Engage is to become available next year to Anthem’s full-risk customers in California and Colorado, as well as to its national accounts business segment.””
PAYC has been the topic of several other reports. Zacks Investment Research upgraded shares of Paycom Software from a “hold” rating to a “buy” rating and set a $87.00 price target on the stock in a research note on Friday, November 3rd. Barclays PLC increased their price objective on shares of Paycom Software from $74.00 to $82.00 and gave the stock an “overweight” rating in a research note on Wednesday, September 13th. Robert W. Baird reiterated a “buy” rating and set a $78.00 price objective on shares of Paycom Software in a research note on Tuesday, September 12th. Stifel Nicolaus reissued a “buy” rating and issued a $85.00 target price on shares of Paycom Software in a report on Friday, November 3rd. Finally, Dougherty & Co started coverage on shares of Paycom Software in a report on Tuesday, October 31st. They issued a “buy” rating and a $100.00 target price for the company. Five research analysts have rated the stock with a hold rating, thirteen have issued a buy rating and one has issued a strong buy rating to the company’s stock. The stock presently has a consensus rating of “Buy” and an average target price of $83.44.
Paycom Software (NYSE:PAYC) last posted its quarterly earnings results on Tuesday, October 31st. The software maker reported $0.29 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.19 by $0.10. Paycom Software had a net margin of 15.37% and a return on equity of 44.27%. The firm had revenue of $101.30 million for the quarter, compared to analyst estimates of $100.47 million. During the same period in the prior year, the firm posted $0.15 earnings per share. The company’s quarterly revenue was up 31.0% compared to the same quarter last year. sell-side analysts expect that Paycom Software will post 0.82 EPS for the current fiscal year.
In related news, insider Stacey M. Pezold sold 10,000 shares of the business’s stock in a transaction dated Friday, September 1st. The stock was sold at an average price of $75.02, for a total value of $750,200.00. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Jeffrey D. York sold 40,000 shares of the business’s stock in a transaction dated Monday, October 2nd. The shares were sold at an average price of $74.81, for a total value of $2,992,400.00. The disclosure for this sale can be found here. Insiders sold a total of 61,000 shares of company stock worth $4,564,520 over the last 90 days. 17.90% of the stock is currently owned by company insiders.
Several hedge funds and other institutional investors have recently modified their holdings of PAYC. BlackRock Inc. grew its holdings in shares of Paycom Software by 74,069.7% during the first quarter. BlackRock Inc. now owns 2,662,693 shares of the software maker’s stock worth $153,132,000 after purchasing an additional 2,659,103 shares in the last quarter. JPMorgan Chase & Co. boosted its stake in Paycom Software by 96.1% in the third quarter. JPMorgan Chase & Co. now owns 1,172,756 shares of the software maker’s stock worth $87,664,000 after buying an additional 574,658 shares in the last quarter. Capital World Investors boosted its stake in Paycom Software by 6.7% in the second quarter. Capital World Investors now owns 6,612,914 shares of the software maker’s stock worth $452,389,000 after buying an additional 415,000 shares in the last quarter. New York State Common Retirement Fund boosted its stake in Paycom Software by 60.3% in the second quarter. New York State Common Retirement Fund now owns 748,858 shares of the software maker’s stock worth $51,229,000 after buying an additional 281,778 shares in the last quarter. Finally, Koch Industries Inc. purchased a new stake in Paycom Software in the second quarter worth approximately $271,000. 88.57% of the stock is owned by institutional investors.
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About Paycom Software
Paycom Software, Inc is a provider of a cloud-based human capital management (HCM) software solution delivered as Software-as-a-Service (SaaS). The Company provides functionality and data analytics that businesses need to manage the complete employment life cycle from recruitment to retirement. The Company’s applications streamline client processes and provide clients and their employees with the ability to directly access and manage administrative processes, including applications that identify candidates, on-board employees, manage time and labor, administer payroll deductions and benefits, manage performance, terminate employees and administer post-termination health benefits, such as COBRA.
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