Paycom Software (NYSE:PAYC) Shares Down 5.7% After Analyst Downgrade

Paycom Software, Inc. (NYSE:PAYC)’s stock price dropped 5.7% on Monday after UBS Group lowered their price target on the stock from $245.00 to $210.00. UBS Group currently has a buy rating on the stock. Paycom Software traded as low as $146.52 and last traded at $143.6350. Approximately 126,806 shares were traded during trading, a decline of 83% from the average daily volume of 757,123 shares. The stock had previously closed at $152.29.

Other analysts have also issued research reports about the company. BMO Capital Markets reissued a “market perform” rating and issued a $175.00 target price on shares of Paycom Software in a research report on Friday, January 16th. Jefferies Financial Group reduced their price target on shares of Paycom Software from $225.00 to $190.00 and set a “hold” rating on the stock in a research report on Thursday, November 6th. TD Cowen reduced their target price on shares of Paycom Software from $200.00 to $184.00 and set a “buy” rating on the stock in a report on Thursday, January 8th. JPMorgan Chase & Co. cut their price objective on Paycom Software from $235.00 to $220.00 and set a “neutral” rating on the stock in a research report on Thursday, November 6th. Finally, KeyCorp cut their price target on Paycom Software from $290.00 to $250.00 and set an “overweight” rating on the stock in a report on Thursday, November 6th. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Paycom Software presently has an average rating of “Hold” and a consensus price target of $209.64.

Insider Buying and Selling at Paycom Software

In related news, CFO Robert D. Foster sold 1,300 shares of the firm’s stock in a transaction dated Wednesday, December 10th. The stock was sold at an average price of $162.66, for a total transaction of $211,458.00. Following the transaction, the chief financial officer owned 14,747 shares of the company’s stock, valued at $2,398,747.02. This trade represents a 8.10% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Company insiders own 10.90% of the company’s stock.

Institutional Investors Weigh In On Paycom Software

Hedge funds have recently modified their holdings of the stock. Allianz Asset Management GmbH increased its stake in Paycom Software by 10,106.6% in the 3rd quarter. Allianz Asset Management GmbH now owns 486,957 shares of the software maker’s stock valued at $101,355,000 after buying an additional 482,186 shares during the period. Two Sigma Investments LP increased its stake in shares of Paycom Software by 228.7% during the third quarter. Two Sigma Investments LP now owns 532,124 shares of the software maker’s stock worth $110,756,000 after acquiring an additional 370,219 shares during the period. Woodline Partners LP purchased a new position in Paycom Software during the third quarter worth about $58,452,000. Robeco Institutional Asset Management B.V. lifted its position in Paycom Software by 230.9% in the fourth quarter. Robeco Institutional Asset Management B.V. now owns 341,286 shares of the software maker’s stock valued at $54,387,000 after purchasing an additional 238,155 shares during the period. Finally, Jennison Associates LLC purchased a new stake in Paycom Software in the 2nd quarter valued at approximately $49,853,000. 87.77% of the stock is owned by institutional investors and hedge funds.

Paycom Software Stock Performance

The company has a market cap of $8.32 billion, a price-to-earnings ratio of 18.38, a PEG ratio of 1.56 and a beta of 0.82. The company has a 50-day simple moving average of $159.57 and a 200-day simple moving average of $193.85.

Paycom Software (NYSE:PAYC) last posted its quarterly earnings results 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 analysts’ expectations of $492.62 million. During the same quarter last year, the firm earned $1.67 earnings per share. The firm’s quarterly revenue was up 9.2% compared to the same quarter last year. As a group, equities research analysts forecast that Paycom Software, Inc. will post 7.15 EPS for the current year.

Paycom Software Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, December 8th. Stockholders of record on Monday, November 24th were paid a dividend of $0.375 per share. The ex-dividend date of this dividend was Monday, November 24th. This represents a $1.50 annualized dividend and a dividend yield of 1.0%. Paycom Software’s payout ratio is 18.66%.

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.