Zacks Investment Research upgraded shares of Paycom Software (NYSE:PAYC) from a hold rating to a buy rating in a research report report published on Wednesday morning, Zacks.com reports. They currently have $259.00 target price on the software maker’s stock.
According to Zacks, “Paycom reported strong Q2 results wherein both earnings and revenues increased year over year and surpassed estimates as well. The company is gaining from solid growth in recurring revenues, backed by new business wins and an increased existing clientele. A strong spurt in sales can be attributed to its employee usage strategy, sales efforts and investments. The launch of differentiated product offering, Direct Data Exchange, for all Paycom Software clients in the first quarter is also boosting client additions. The release of Ask Here also makes us optimistic. However, stiff competition from companies like ADP is a lingering headwind, which could induce pricing pressure and shrink Paycom’s margins. Further, the company’s full-year guidance implies a deceleration in revenue growth, which makes us anxious about the stock's prospects.”
PAYC has been the subject of a number of other research reports. Jefferies Financial Group cut Paycom Software from a buy rating to a hold rating and set a $233.00 price objective for the company. in a report on Friday, July 19th. Needham & Company LLC boosted their price objective on Paycom Software from $230.00 to $280.00 and gave the company a buy rating in a report on Wednesday, July 31st. KeyCorp boosted their price objective on Paycom Software from $246.00 to $275.00 and gave the company an overweight rating in a report on Wednesday, July 31st. ValuEngine cut Paycom Software from a strong-buy rating to a buy rating in a report on Thursday, August 1st. Finally, Canaccord Genuity boosted their price objective on Paycom Software from $160.00 to $195.00 and gave the company a hold rating in a report on Thursday, May 2nd. Nine equities research analysts have rated the stock with a hold rating and seven have assigned a buy rating to the stock. The stock currently has an average rating of Hold and a consensus price target of $226.79.
Paycom Software (NYSE:PAYC) last posted its quarterly earnings data on Tuesday, July 30th. The software maker reported $0.75 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.61 by $0.14. Paycom Software had a return on equity of 38.25% and a net margin of 23.93%. The company had revenue of $169.30 million during the quarter, compared to analysts’ expectations of $163.88 million. During the same quarter in the previous year, the business earned $0.59 EPS. Paycom Software’s revenue was up 31.4% compared to the same quarter last year. As a group, equities analysts predict that Paycom Software will post 2.74 EPS for the current year.
In other Paycom Software news, insider Bradley Scott Smith sold 2,600 shares of the company’s stock in a transaction on Monday, June 3rd. The stock was sold at an average price of $200.95, for a total value of $522,470.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, COO Jon Evans sold 2,100 shares of the company’s stock in a transaction on Tuesday, July 9th. The stock was sold at an average price of $240.47, for a total value of $504,987.00. The disclosure for this sale can be found here. Insiders sold a total of 29,700 shares of company stock valued at $6,848,457 over the last quarter. Company insiders own 16.09% of the company’s stock.
Several hedge funds have recently modified their holdings of the business. CSat Investment Advisory L.P. bought a new position in shares of Paycom Software in the 2nd quarter worth $34,000. Global Retirement Partners LLC raised its position in shares of Paycom Software by 100.0% in the 1st quarter. Global Retirement Partners LLC now owns 200 shares of the software maker’s stock worth $38,000 after acquiring an additional 100 shares in the last quarter. Riverhead Capital Management LLC bought a new position in shares of Paycom Software in the 2nd quarter worth $45,000. Flagship Harbor Advisors LLC raised its position in shares of Paycom Software by 404.8% in the 2nd quarter. Flagship Harbor Advisors LLC now owns 212 shares of the software maker’s stock worth $48,000 after acquiring an additional 170 shares in the last quarter. Finally, CWM LLC bought a new position in shares of Paycom Software in the 1st quarter worth $45,000. Institutional investors and hedge funds own 74.89% of the company’s stock.
Paycom Software Company Profile
Paycom Software, Inc provides cloud-based human capital management (HCM) software service for small to mid-sized companies in the United States. It provides functionality and data analytics that businesses need to manage the employment life cycle from recruitment to retirement. The company's HCM solution offers a suite of applications in the areas of talent acquisition, including applicant tracking, candidate tracker, background checks, on-boarding, e-verify, and tax credit services; and time and labor management, such as time and attendance, scheduling/schedule exchange, time-off requests, labor allocation, labor management reports/push reporting, and geofencing/geotracking.
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