Paycom Software (NYSE:PAYC) Reaches New 1-Year Low – What’s Next?

Paycom Software, Inc. (NYSE:PAYC)’s stock price hit a new 52-week low during trading on Friday . The company traded as low as $154.63 and last traded at $154.7260, with a volume of 84831 shares changing hands. The stock had previously closed at $159.36.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on the company. Jefferies Financial Group cut their target price on Paycom Software from $225.00 to $190.00 and set a “hold” rating on the stock in a research report on Thursday, November 6th. BTIG Research began coverage on Paycom Software in a report on Wednesday, December 17th. They set a “buy” rating and a $195.00 price objective on the stock. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Paycom Software in a research note on Monday. Cantor Fitzgerald upgraded shares of Paycom Software to a “hold” rating in a report on Thursday, September 11th. Finally, Mizuho cut their price target on shares of Paycom Software from $220.00 to $180.00 and set a “neutral” rating on the stock in a report on Thursday, November 6th. One equities research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and twelve have given a Hold rating to the stock. Based on data from MarketBeat.com, Paycom Software currently has an average rating of “Hold” and a consensus target price of $221.00.

Paycom Software Price Performance

The firm has a market capitalization of $8.63 billion, a PE ratio of 19.08, a price-to-earnings-growth ratio of 1.73 and a beta of 0.82. The company has a fifty day moving average of $167.84 and a 200-day moving average of $203.19.

Paycom Software (NYSE:PAYC) last issued its earnings results on Wednesday, November 5th. The software maker reported $1.94 earnings per share for the quarter, missing the consensus estimate of $1.96 by ($0.02). The firm had revenue of $493.30 million during the quarter, compared to analyst estimates of $492.62 million. Paycom Software had a return on equity of 24.79% and a net margin of 22.65%.The business’s revenue for the quarter was up 9.2% on a year-over-year basis. During the same period in the previous year, the company earned $1.67 earnings per share. Equities analysts anticipate that Paycom Software, Inc. will post 7.15 EPS for the current year.

Paycom Software Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, December 8th. Shareholders of record on Monday, November 24th were paid a $0.375 dividend. The ex-dividend date was Monday, November 24th. This represents a $1.50 dividend on an annualized basis and a yield of 1.0%. Paycom Software’s payout ratio is 18.66%.

Insider Buying and Selling

In other news, CFO Robert D. Foster sold 1,300 shares of the stock in a transaction on Wednesday, December 10th. The shares were sold at an average price of $162.66, for a total transaction of $211,458.00. Following the transaction, the chief financial officer owned 14,747 shares in the company, valued at $2,398,747.02. This represents a 8.10% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 10.90% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Brighton Jones LLC bought a new stake in Paycom Software during the fourth quarter valued at about $638,000. Vident Advisory LLC acquired a new position in shares of Paycom Software during the 1st quarter worth about $259,000. Royal Bank of Canada boosted its stake in Paycom Software by 3.8% during the 1st quarter. Royal Bank of Canada now owns 243,375 shares of the software maker’s stock valued at $53,173,000 after purchasing an additional 8,932 shares during the period. EP Wealth Advisors LLC boosted its stake in Paycom Software by 49.4% during the 1st quarter. EP Wealth Advisors LLC now owns 1,721 shares of the software maker’s stock valued at $376,000 after purchasing an additional 569 shares during the period. Finally, Federation des caisses Desjardins du Quebec grew its holdings in Paycom Software by 4,448.4% in the 1st quarter. Federation des caisses Desjardins du Quebec now owns 19,831 shares of the software maker’s stock valued at $4,334,000 after buying an additional 19,395 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.