Paycom Software (NYSE:PAYC) Cut to Hold at Zacks Research

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

Other equities research analysts have also issued research reports about the stock. Cantor Fitzgerald increased their price objective on shares of Paycom Software from $135.00 to $195.00 and gave the stock a “neutral” rating in a report on Thursday, August 6th. Wall Street Zen downgraded shares of Paycom Software from a “buy” rating to a “hold” rating in a research note on Sunday, September 6th. JPMorgan Chase & Co. upped their target price on shares of Paycom Software from $140.00 to $264.00 and gave the stock a “neutral” rating in a research report on Tuesday, August 25th. KeyCorp increased their price target on shares of Paycom Software from $270.00 to $280.00 and gave the company an “overweight” rating in a research note on Monday, September 21st. Finally, BTIG Research raised their price target on shares of Paycom Software from $160.00 to $230.00 and gave the company a “buy” rating in a report on Thursday, August 6th. Five analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $216.93.

Paycom Software Trading Up 0.4%

PAYC stock opened at $223.37 on Monday. The business has a fifty day moving average price of $218.76 and a 200 day moving average price of $163.14. 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 has a fifty-two week low of $104.90 and a fifty-two week high of $244.98. The stock has a market capitalization of $10.07 billion, a price-to-earnings ratio of 23.74, a P/E/G ratio of 1.21 and a beta of 0.82.

Paycom Software (NYSE:PAYC) last announced its earnings results on Wednesday, August 5th. The software maker reported $2.78 EPS for the quarter, topping the consensus estimate of $2.38 by $0.40. Paycom Software had a return on equity of 37.06% and a net margin of 22.78%.The company had revenue of $531.20 million for the quarter, compared to analysts’ expectations of $513.12 million. During the same quarter in the prior year, the business earned $2.06 earnings per share. The business’s revenue for the quarter was up 9.8% on a year-over-year basis. Analysts expect that Paycom Software will post 10.64 EPS for the current fiscal year.

Paycom Software Dividend Announcement

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

Insider Activity at Paycom Software

In related news, insider Shane Hadlock sold 241 shares of the stock in a transaction that occurred on Friday, August 28th. The shares were sold at an average price of $240.07, for a total value of $57,856.87. Following the sale, the insider directly owned 69,911 shares in the company, valued at $16,783,533.77. This trade represents a 0.34% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. 13.20% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Paycom Software

Several large investors have recently bought and sold shares of the company. BlackRock Inc. acquired a new position in shares of Paycom Software in the 2nd quarter valued at $632,460,000. Reinhart Partners LLC. raised its stake in Paycom Software by 20.1% during the 2nd quarter. Reinhart Partners LLC. now owns 1,219,906 shares of the software maker’s stock worth $153,320,000 after buying an additional 204,191 shares during the period. Goldman Sachs Group Inc. lifted its holdings in Paycom Software by 5.2% during the fourth quarter. Goldman Sachs Group Inc. now owns 552,470 shares of the software maker’s stock worth $88,042,000 after acquiring an additional 27,069 shares in the last quarter. Dimensional Fund Advisors LP lifted its holdings in Paycom Software by 10.1% during the first quarter. Dimensional Fund Advisors LP now owns 538,376 shares of the software maker’s stock worth $65,435,000 after acquiring an additional 49,460 shares in the last quarter. Finally, River Road Asset Management LLC grew its stake in Paycom Software by 481.9% in the fourth quarter. River Road Asset Management LLC now owns 392,403 shares of the software maker’s stock valued at $62,533,000 after acquiring an additional 324,970 shares during the period. Institutional investors own 87.77% of the company’s stock.

Paycom Software Company Profile

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.