Paycom Software (NYSE:PAYC) Upgraded by Wall Street Zen to Buy Rating

Wall Street Zen upgraded shares of Paycom Software (NYSE:PAYC) from a hold rating to a buy rating in a research report sent to investors on Saturday morning.

A number of other research analysts also recently weighed in on the company. Weiss Ratings raised Paycom Software from a “hold (c-)” rating to a “hold (c)” rating in a research note on Tuesday, August 11th. Cantor Fitzgerald lifted their price objective on Paycom Software from $135.00 to $195.00 and gave the stock a “neutral” rating in a research note on Thursday, August 6th. Mizuho upped their price objective on Paycom Software from $120.00 to $130.00 and gave the company a “neutral” rating in a report on Thursday, May 7th. Barclays increased their target price on Paycom Software from $154.00 to $210.00 and gave the company an “equal weight” rating in a research note on Thursday, August 6th. Finally, JPMorgan Chase & Co. raised their target price on Paycom Software from $140.00 to $264.00 and gave the stock a “neutral” rating in a report on Tuesday, August 25th. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and nine have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, Paycom Software currently has an average rating of “Hold” and a consensus price target of $208.08.

Paycom Software Stock Up 0.8%

Shares of NYSE:PAYC opened at $239.00 on Friday. Paycom Software has a one year low of $104.90 and a one year high of $242.50. The company has a 50 day moving average of $171.24 and a 200-day moving average of $143.49. The company has a debt-to-equity ratio of 1.57, a current ratio of 1.07 and a quick ratio of 1.07. The stock has a market cap of $10.77 billion, a price-to-earnings ratio of 25.40, a P/E/G ratio of 1.32 and a beta of 0.76.

Paycom Software (NYSE:PAYC) last posted its quarterly earnings results on Wednesday, August 5th. The software maker reported $2.78 earnings per share for the quarter, topping analysts’ consensus estimates of $2.38 by $0.40. Paycom Software had a net margin of 22.78% and a return on equity of 37.06%. The business had revenue of $531.20 million during the quarter, compared to the consensus estimate of $513.12 million. During the same period in the previous year, the firm posted $2.06 earnings per share. Paycom Software’s revenue for the quarter was up 9.8% compared to the same quarter last year. On average, sell-side analysts forecast that Paycom Software will post 10.65 earnings per share for the current year.

Paycom Software Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 8th. Shareholders of record on Monday, August 24th will be issued a $0.375 dividend. This represents a $1.50 annualized dividend and a dividend yield of 0.6%. The ex-dividend date is Monday, August 24th. Paycom Software’s dividend payout ratio is 15.94%.

Institutional Investors Weigh In On Paycom Software

A number of hedge funds have recently modified their holdings of PAYC. California State Teachers Retirement System increased its stake in Paycom Software by 9,363.4% during the 2nd quarter. California State Teachers Retirement System now owns 5,681,993 shares of the software maker’s stock worth $714,113,000 after purchasing an additional 5,621,951 shares in the last quarter. BlackRock Inc. acquired a new position in shares of Paycom Software in the second quarter valued at approximately $632,460,000. Reinhart Partners LLC. increased its position in shares of Paycom Software by 887.4% during the fourth quarter. Reinhart Partners LLC. now owns 598,323 shares of the software maker’s stock worth $95,351,000 after acquiring an additional 537,726 shares in the last quarter. Contour Asset Management LLC acquired a new stake in shares of Paycom Software during the fourth quarter worth $60,333,000. Finally, Two Sigma Investments LP raised its holdings in shares of Paycom Software by 228.7% during the third quarter. Two Sigma Investments LP now owns 532,124 shares of the software maker’s stock worth $110,756,000 after acquiring an additional 370,219 shares during the period. Institutional investors and hedge funds own 87.77% of the company’s stock.

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.