Paycom Software (NYSE:PAYC) Hits New 1-Year Low – Should You Sell?

Paycom Software, Inc. (NYSE:PAYC)’s stock price hit a new 52-week low during mid-day trading on Tuesday . The company traded as low as $129.62 and last traded at $130.5020, with a volume of 60692 shares changing hands. The stock had previously closed at $133.31.

Wall Street Analyst Weigh In

Several equities analysts have issued reports on the stock. Jefferies Financial Group lowered their target price on shares of Paycom Software from $225.00 to $190.00 and set a “hold” rating on the stock in a research note on Thursday, November 6th. BMO Capital Markets restated a “market perform” rating and issued a $175.00 target price on shares of Paycom Software in a report on Friday, January 16th. KeyCorp cut their target price on shares of Paycom Software from $290.00 to $250.00 and set an “overweight” rating for the company in a research report on Thursday, November 6th. Cantor Fitzgerald lowered their price target on Paycom Software from $170.00 to $135.00 and set a “neutral” rating on the stock in a report on Thursday, January 29th. Finally, Weiss Ratings downgraded Paycom Software from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Tuesday. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, ten have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $202.86.

Paycom Software Stock Performance

The stock has a 50-day moving average price of $155.45 and a two-hundred day moving average price of $189.10. The stock has a market capitalization of $7.37 billion, a PE ratio of 16.32, a PEG ratio of 1.31 and a beta of 0.79.

Paycom Software (NYSE:PAYC) last issued its quarterly 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). Paycom Software had a net margin of 22.65% and a return on equity of 24.79%. The firm had revenue of $493.30 million for the quarter, compared to analysts’ expectations of $492.62 million. During the same period in the prior year, the firm earned $1.67 EPS. Paycom Software’s revenue for the quarter was up 9.2% compared to the same quarter last year. As a group, equities analysts predict that Paycom Software, Inc. will post 7.15 earnings per share for the current year.

Insider Buying and Selling at Paycom Software

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

Institutional Investors Weigh In On Paycom Software

Several institutional investors and hedge funds have recently modified their holdings of the stock. CYBER HORNET ETFs LLC bought a new stake in Paycom Software during the second quarter worth approximately $29,000. Caitlin John LLC bought a new position in shares of Paycom Software during the 3rd quarter valued at approximately $29,000. MUFG Securities EMEA plc purchased a new stake in Paycom Software during the 2nd quarter valued at $33,000. Steigerwald Gordon & Koch Inc. bought a new stake in Paycom Software in the third quarter worth $31,000. Finally, True Wealth Design LLC lifted its position in Paycom Software by 946.7% in the fourth quarter. True Wealth Design LLC now owns 157 shares of the software maker’s stock worth $25,000 after buying an additional 142 shares during the last quarter. 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.