Paycom Software (NYSE:PAYC) Rating Lowered to “Strong Sell” at Zacks Research

Paycom Software (NYSE:PAYC) was downgraded by analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a research report issued to clients and investors on Tuesday,Zacks.com reports.

Other analysts have also issued reports about the company. Weiss Ratings reissued a “hold (c-)” rating on shares of Paycom Software in a report on Monday, December 29th. BTIG Research started coverage on Paycom Software in a research report on Wednesday, December 17th. They issued a “buy” rating and a $195.00 price target for the company. Jefferies Financial Group cut their price objective on shares of Paycom Software from $225.00 to $190.00 and set a “hold” rating on the stock in a report on Thursday, November 6th. Guggenheim initiated coverage on shares of Paycom Software in a report on Friday, September 26th. They issued a “buy” rating and a $270.00 target price for the company. Finally, KeyCorp reduced their target price on Paycom Software from $290.00 to $250.00 and set an “overweight” rating for the company in a report on Thursday, November 6th. One equities research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Paycom Software currently has an average rating of “Hold” and an average target price of $212.14.

Paycom Software Stock Up 1.1%

Shares of PAYC opened at $149.13 on Tuesday. The business’s fifty day moving average is $160.09 and its 200 day moving average is $195.25. Paycom Software has a 12-month low of $145.61 and a 12-month high of $267.76. The stock has a market cap of $8.39 billion, a P/E ratio of 18.55, a P/E/G ratio of 1.51 and a beta of 0.82.

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

Insider Buying and Selling

In other Paycom Software news, CFO Robert D. Foster sold 1,300 shares of the stock in a transaction 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 completion of the transaction, the chief financial officer directly owned 14,747 shares of the company’s stock, valued at approximately $2,398,747.02. This represents a 8.10% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders own 10.90% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the company. Vanguard Group Inc. raised its stake in Paycom Software by 3.2% in the 3rd quarter. Vanguard Group Inc. now owns 5,802,788 shares of the software maker’s stock valued at $1,207,792,000 after acquiring an additional 179,218 shares during the period. State Street Corp increased its stake in shares of Paycom Software by 2.8% in the third quarter. State Street Corp now owns 2,157,127 shares of the software maker’s stock worth $448,984,000 after purchasing an additional 59,217 shares in the last quarter. Baillie Gifford & Co. raised its position in shares of Paycom Software by 10.3% in the third quarter. Baillie Gifford & Co. now owns 1,708,662 shares of the software maker’s stock valued at $355,641,000 after purchasing an additional 158,967 shares during the period. Geode Capital Management LLC raised its position in shares of Paycom Software by 5.3% in the second quarter. Geode Capital Management LLC now owns 1,661,685 shares of the software maker’s stock valued at $383,265,000 after purchasing an additional 83,154 shares during the period. Finally, Invesco Ltd. lifted its stake in shares of Paycom Software by 9.3% during the 3rd quarter. Invesco Ltd. now owns 1,216,188 shares of the software maker’s stock valued at $253,137,000 after buying an additional 103,801 shares in 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.