Paycom Software (NYSE:PAYC) Stock Dropped to Hold by Zacks Research

Zacks Research downgraded shares of Paycom Software (NYSE:PAYC) from a strong-buy rating to a hold rating in a report issued on Monday morning,Zacks reports.

Several other equities analysts have also issued reports on the company. Guggenheim boosted their target price on Paycom Software from $180.00 to $225.00 and gave the stock a “buy” rating in a research report on Thursday, August 6th. UBS Group lifted their price objective on shares of Paycom Software from $205.00 to $285.00 and gave the stock a “buy” rating in a research note on Tuesday, September 1st. Wall Street Zen downgraded shares of Paycom Software from a “buy” rating to a “hold” rating in a research note on Sunday, September 6th. TD Cowen increased their target price on shares of Paycom Software from $244.00 to $286.00 and gave the stock a “buy” rating in a report on Friday, October 2nd. Finally, Cantor Fitzgerald lifted their price target on shares of Paycom Software from $135.00 to $195.00 and gave the stock a “neutral” rating in a research report on Thursday, August 6th. Five equities research analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Paycom Software presently has an average rating of “Hold” and a consensus target price of $216.93.

Paycom Software Price Performance

PAYC opened at $222.30 on Monday. The company’s 50 day simple moving average is $217.67 and its 200-day simple moving average is $162.44. The stock has a market capitalization of $10.02 billion, a P/E ratio of 23.62, a price-to-earnings-growth ratio of 1.23 and a beta of 0.82. Paycom Software has a one year low of $104.90 and a one year high of $244.98. The company has a debt-to-equity ratio of 1.57, a current ratio of 1.07 and a quick ratio of 1.07.

Paycom Software (NYSE:PAYC) last announced its quarterly earnings data on Wednesday, August 5th. The software maker reported $2.78 earnings per share for the quarter, beating the consensus estimate of $2.38 by $0.40. The business had revenue of $531.20 million for the quarter, compared to analyst estimates of $513.12 million. Paycom Software had a net margin of 22.78% and a return on equity of 37.06%. Paycom Software’s revenue was up 9.8% compared to the same quarter last year. During the same period in the prior year, the business posted $2.06 earnings per share. Sell-side analysts anticipate that Paycom Software will post 10.64 earnings per share for the current fiscal year.

Paycom Software Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 8th. Shareholders of record on Monday, August 24th were given a dividend of $0.3750 per share. This represents a $1.50 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date was Monday, August 24th. Paycom Software’s dividend payout ratio is presently 15.94%.

Insider Buying and Selling

In other news, insider Shane Hadlock sold 2,577 shares of the company’s stock in a transaction that occurred on Thursday, August 27th. The shares were sold at an average price of $237.60, for a total transaction of $612,295.20. Following the completion of the sale, the insider owned 70,152 shares of the company’s stock, valued at approximately $16,668,115.20. This represents a 3.54% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. 13.20% of the stock is currently owned by company insiders.

Institutional Trading of Paycom Software

A number of hedge funds have recently made changes to their positions in the company. Archford Capital Strategies LLC lifted its stake in shares of Paycom Software by 1.1% in the 2nd quarter. Archford Capital Strategies LLC now owns 4,684 shares of the software maker’s stock worth $589,000 after purchasing an additional 49 shares during the period. CX Institutional increased its holdings in Paycom Software by 4.7% during the third quarter. CX Institutional now owns 1,399 shares of the software maker’s stock valued at $304,000 after buying an additional 63 shares during the last quarter. Versant Capital Management Inc increased its holdings in Paycom Software by 2.6% during the third quarter. Versant Capital Management Inc now owns 2,689 shares of the software maker’s stock valued at $585,000 after buying an additional 69 shares during the last quarter. Lido Advisors LLC raised its position in Paycom Software by 1.4% in the fourth quarter. Lido Advisors LLC now owns 6,286 shares of the software maker’s stock worth $1,081,000 after acquiring an additional 87 shares during the period. Finally, EverSource Wealth Advisors LLC raised its holdings in Paycom Software by 32.1% in the 1st quarter. EverSource Wealth Advisors LLC now owns 424 shares of the software maker’s stock worth $52,000 after purchasing an additional 103 shares during the period. 87.77% of the stock is owned by institutional investors and hedge funds.

About Paycom Software

Paycom Software, Inc develops and provides cloud-based human capital management (HCM) software for businesses. Its platform is designed to help employers manage payroll and other workforce processes through a unified system, reducing the need for separate applications and manual data entry.

The company’s products and services include payroll processing, tax management, time and labor management, talent acquisition, onboarding, talent management, employee benefits administration, expense management, and workforce analytics.