Paycom Software, Inc. (NYSE:PAYC) Receives Consensus Rating of “Hold” from Brokerages

Paycom Software, Inc. (NYSE:PAYC) has received an average recommendation of “Hold” from the seventeen analysts that are currently covering the stock, MarketBeat reports. One research analyst has rated the stock with a sell rating, eleven have issued a hold rating and five have issued a buy rating on the company. The average 1-year price target among brokerages that have issued ratings on the stock in the last year is $168.5714.

A number of research analysts have commented on the company. TD Cowen lowered their price target on Paycom Software from $200.00 to $184.00 and set a “buy” rating for the company in a research report on Thursday, January 8th. Barclays decreased their target price on Paycom Software from $185.00 to $140.00 and set an “equal weight” rating for the company in a report on Thursday, February 12th. UBS Group cut their price target on shares of Paycom Software from $245.00 to $210.00 and set a “buy” rating on the stock in a report on Monday, January 26th. Jefferies Financial Group reduced their price objective on shares of Paycom Software from $190.00 to $130.00 and set a “hold” rating on the stock in a research report on Thursday, February 12th. Finally, Zacks Research raised shares of Paycom Software from a “strong sell” rating to a “hold” rating in a research report on Wednesday, February 18th.

Paycom Software Stock Up 2.0%

Shares of Paycom Software stock opened at $136.76 on Friday. The company’s fifty day simple moving average is $139.51 and its two-hundred day simple moving average is $174.32. Paycom Software has a 12-month low of $104.90 and a 12-month high of $267.76. The firm has a market cap of $7.42 billion, a PE ratio of 16.90, a price-to-earnings-growth ratio of 1.46 and a beta of 0.80.

Paycom Software (NYSE:PAYC) last issued its quarterly earnings data on Wednesday, February 11th. The software maker reported $2.45 EPS for the quarter, beating the consensus estimate of $2.44 by $0.01. The firm had revenue of $544.30 million during the quarter, compared to the consensus estimate of $542.79 million. Paycom Software had a net margin of 22.10% and a return on equity of 24.25%. The company’s quarterly revenue was up 10.2% compared to the same quarter last year. During the same period in the prior year, the firm posted $2.32 earnings per share. As a group, sell-side analysts expect that Paycom Software will post 7.15 earnings per share for the current fiscal year.

Paycom Software Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, March 23rd. Shareholders of record on Monday, March 9th will be issued a $0.375 dividend. The ex-dividend date is Monday, March 9th. This represents a $1.50 annualized dividend and a yield of 1.1%. Paycom Software’s dividend payout ratio (DPR) is 18.54%.

Insiders Place Their Bets

In other Paycom Software news, CFO Robert D. Foster sold 1,300 shares of the company’s stock in a transaction that occurred on Wednesday, December 10th. The stock was 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 approximately $2,398,747.02. This represents a 8.10% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 10.90% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in PAYC. Reinhart Partners LLC. grew its stake in Paycom Software by 887.4% in the fourth quarter. Reinhart Partners LLC. now owns 598,323 shares of the software maker’s stock worth $95,351,000 after purchasing an additional 537,726 shares during the period. Allianz Asset Management GmbH boosted its holdings in shares of Paycom Software by 10,106.6% during the 3rd quarter. Allianz Asset Management GmbH now owns 486,957 shares of the software maker’s stock valued at $101,355,000 after buying an additional 482,186 shares in the last quarter. Contour Asset Management LLC purchased a new stake in shares of Paycom Software in the 4th quarter worth about $60,333,000. Two Sigma Investments LP grew 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 worth $110,756,000 after buying an additional 370,219 shares during the period. Finally, Invesco Ltd. increased its stake in shares of 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 acquiring an additional 343,494 shares in the last quarter. Hedge funds and other 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.