KeyCorp Raises Paycom Software (NYSE:PAYC) Price Target to $390.00

Paycom Software (NYSE:PAYC – Get Rating) had its price target boosted by KeyCorp from $340.00 to $390.00 in a research report sent to investors on Wednesday, Marketbeat.com reports. They currently have an overweight rating on the software maker’s stock. KeyCorp also issued estimates for Paycom Software’s Q1 2023 earnings at $1.94 EPS, Q3 2023 earnings at $1.16 EPS, Q4 2023 earnings at $1.46 EPS and FY2023 earnings at $5.81 EPS.

Several other equities research analysts have also commented on the company. Jefferies Financial Group decreased their price target on Paycom Software from $400.00 to $335.00 in a research note on Monday, May 23rd. TheStreet lowered Paycom Software from a b- rating to a c+ rating in a research note on Monday, May 2nd. DA Davidson lowered Paycom Software from a buy rating to a neutral rating and set a $360.00 target price on the stock. in a research note on Monday, July 25th. Credit Suisse Group reduced their target price on Paycom Software from $425.00 to $350.00 in a research note on Wednesday, May 4th. Finally, Deutsche Bank Aktiengesellschaft reduced their target price on Paycom Software from $450.00 to $425.00 in a research note on Wednesday, May 4th. Six research analysts have rated the stock with a hold rating and eight have assigned a buy rating to the stock. According to MarketBeat.com, Paycom Software presently has a consensus rating of Moderate Buy and an average target price of $375.43.

Paycom Software Price Performance

Shares of NYSE:PAYC opened at $370.01 on Wednesday. The business’s 50 day simple moving average is $303.54 and its 200-day simple moving average is $312.44. The firm has a market capitalization of $22.29 billion, a price-to-earnings ratio of 94.15, a price-to-earnings-growth ratio of 3.34 and a beta of 1.50. The company has a debt-to-equity ratio of 0.03, a current ratio of 1.08 and a quick ratio of 1.08. Paycom Software has a 12 month low of $255.82 and a 12 month high of $558.97.

Paycom Software (NYSE:PAYC – Get Rating) last announced its quarterly earnings results on Tuesday, May 3rd. The software maker reported $1.56 EPS for the quarter, topping the consensus estimate of $1.42 by $0.14. The business had revenue of $353.52 million for the quarter, compared to analyst estimates of $343.20 million. Paycom Software had a return on equity of 23.38% and a net margin of 18.85%. The company’s quarterly revenue was up 29.9% on a year-over-year basis. During the same quarter in the previous year, the company earned $1.10 EPS. As a group, equities analysts forecast that Paycom Software will post 4.32 earnings per share for the current fiscal year.

Paycom Software announced that its Board of Directors has initiated a stock repurchase plan on Tuesday, June 7th that authorizes the company to repurchase $550.00 million in shares. This repurchase authorization authorizes the software maker to repurchase up to 3% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s management believes its shares are undervalued.

Insider Activity at Paycom Software

In related news, insider Bradley Scott Smith sold 1,625 shares of the stock in a transaction on Wednesday, May 11th. The stock was sold at an average price of $275.24, for a total value of $447,265.00. Following the completion of the sale, the insider now directly owns 3,600 shares in the company, valued at approximately $990,864. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. In related news, insider Bradley Scott Smith sold 1,625 shares of the stock in a transaction on Wednesday, May 11th. The stock was sold at an average price of $275.24, for a total value of $447,265.00. Following the completion of the sale, the insider now directly owns 3,600 shares in the company, valued at approximately $990,864. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, insider Holly Faurot sold 194 shares of the company’s stock in a transaction dated Monday, May 9th. The shares were sold at an average price of $280.32, for a total transaction of $54,382.08. Following the completion of the transaction, the insider now directly owns 45,180 shares of the company’s stock, valued at $12,664,857.60. The disclosure for this sale can be found here. In the last three months, insiders sold 19,721 shares of company stock worth $5,441,538. Corporate insiders own 15.20% of the company’s stock.

Hedge Funds Weigh In On Paycom Software

A number of institutional investors and hedge funds have recently added to or reduced their stakes in PAYC. BlackRock Inc. lifted its position in shares of Paycom Software by 11.5% during the first quarter. BlackRock Inc. now owns 5,967,962 shares of the software maker’s stock worth $2,067,181,000 after purchasing an additional 615,839 shares during the last quarter. Capital Research Global Investors lifted its position in shares of Paycom Software by 21.8% during the fourth quarter. Capital Research Global Investors now owns 1,988,938 shares of the software maker’s stock worth $825,787,000 after purchasing an additional 356,545 shares during the last quarter. Goldman Sachs Group Inc. lifted its position in shares of Paycom Software by 47.8% during the first quarter. Goldman Sachs Group Inc. now owns 877,824 shares of the software maker’s stock worth $304,061,000 after purchasing an additional 283,892 shares during the last quarter. Alyeska Investment Group L.P. lifted its position in shares of Paycom Software by 156.4% during the first quarter. Alyeska Investment Group L.P. now owns 456,317 shares of the software maker’s stock worth $158,059,000 after purchasing an additional 278,342 shares during the last quarter. Finally, Eagle Asset Management Inc. bought a new position in shares of Paycom Software during the first quarter worth about $91,207,000. 87.12% of the stock is owned by hedge funds and other institutional investors.

About Paycom Software

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Paycom Software, Inc provides cloud-based human capital management (HCM) solution delivered as software-as-a-service for small to mid-sized companies in the United States. It offers functionality and data analytics that businesses need to manage the employment life cycle from recruitment to retirement.