Paycom Software (NYSE:PAYC) Stock Price Expected to Rise, KeyCorp Analyst Says

Paycom Software (NYSE:PAYC) had its price objective lifted by research analysts at KeyCorp from $295.00 to $297.00 in a research note issued on Thursday, Benzinga reports. The brokerage presently has an “overweight” rating on the software maker’s stock. KeyCorp‘s target price suggests a potential upside of 11.90% from the stock’s current price.

Other research analysts have also recently issued research reports about the stock. Jefferies Financial Group lifted their target price on shares of Paycom Software from $160.00 to $300.00 and gave the company a “hold” rating in a research note on Tuesday, October 27th. TD Cowen raised their price target on Paycom Software from $244.00 to $286.00 and gave the company a “buy” rating in a report on Friday, October 2nd. Wall Street Zen downgraded Paycom Software from a “buy” rating to a “hold” rating in a research report on Sunday, September 6th. BTIG Research downgraded Paycom Software from a “buy” rating to a “neutral” rating in a research report on Thursday. Finally, Needham & Company LLC reaffirmed a “hold” rating on shares of Paycom Software in a research note on Thursday. Four research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company has an average rating of “Hold” and a consensus price target of $256.36.

Paycom Software Stock Performance

Shares of NYSE PAYC traded down $2.74 during trading on Thursday, hitting $265.42. The company had a trading volume of 398,053 shares, compared to its average volume of 1,155,548. Paycom Software has a 12 month low of $104.90 and a 12 month high of $275.22. The company has a debt-to-equity ratio of 1.57, a quick ratio of 1.07 and a current ratio of 1.07. The firm has a market capitalization of $11.96 billion, a P/E ratio of 27.99, a price-to-earnings-growth ratio of 1.41 and a beta of 0.75. The stock has a 50 day simple moving average of $237.97 and a 200 day simple moving average of $165.78.

Paycom Software (NYSE:PAYC) last posted its quarterly earnings results on Wednesday, November 4th. The software maker reported $3.37 earnings per share for the quarter, topping analysts’ consensus estimates of $2.81 by $0.56. The business had revenue of $543.80 million during the quarter, compared to analyst estimates of $535.26 million. Paycom Software had a net margin of 22.78% and a return on equity of 37.06%. The company’s revenue was up 10.2% on a year-over-year basis. During the same period in the prior year, the business posted $1.94 earnings per share. As a group, analysts anticipate that Paycom Software will post 10.80 earnings per share for the current year.

Insider Activity

In related news, insider Shane Hadlock sold 2,577 shares of the business’s stock in a transaction on Thursday, August 27th. The stock was sold at an average price of $237.60, for a total transaction of $612,295.20. Following the completion of the transaction, the insider owned 70,152 shares in the company, valued at $16,668,115.20. The trade was a 3.54% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 13.20% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the stock. BlackRock Inc. purchased a new stake in Paycom Software in the 2nd quarter valued at about $632,460,000. Reinhart Partners LLC. increased its position in shares of Paycom Software by 20.1% during the second quarter. Reinhart Partners LLC. now owns 1,219,906 shares of the software maker’s stock worth $153,320,000 after acquiring an additional 204,191 shares during the period. Robeco Institutional Asset Management B.V. increased its position in shares of Paycom Software by 108.1% during the third quarter. Robeco Institutional Asset Management B.V. now owns 308,393 shares of the software maker’s stock worth $67,122,000 after acquiring an additional 160,185 shares during the period. Dimensional Fund Advisors LP raised its stake in shares of Paycom Software by 10.1% during the first quarter. Dimensional Fund Advisors LP now owns 538,376 shares of the software maker’s stock valued at $65,435,000 after acquiring an additional 49,460 shares in the last quarter. Finally, Bank of New York Mellon Corp bought a new stake in shares of Paycom Software during the second quarter valued at approximately $42,858,000. Hedge funds and other institutional investors own 87.77% of the company’s stock.

Paycom Software News Roundup

Here are the key news stories impacting Paycom Software this week:

• Positive Sentiment: Q3 earnings were $3.37 per share, ahead of estimates, while revenue of $543.8 million also beat expectations and grew 10.2% year over year. Paycom also raised its revenue guidance. Paycom Q3 earnings and revenue beat estimates
• Positive Sentiment: The company declared its first cash dividend, adding a direct shareholder-return component. Paycom declares first cash dividend
• Negative Sentiment: BTIG Research cut its rating from Buy to Neutral. Separately, commentary questioned whether PAYC is fully valued despite the raised guidance, suggesting investors may see limited upside after the results. Paycom beats and lifts guidance, but is the stock fully valued?

About Paycom Software

Paycom Software, Inc is a provider of cloud-based human capital management (HCM) software designed to help businesses manage employee-related processes through a unified platform. Its solutions support payroll, human resources, talent acquisition and management, time and labor management, compliance, and employee engagement.

The company’s software is intended to allow employers and employees to enter and manage workforce information within a single system. Its offerings include payroll processing, benefits administration, expense management, scheduling, performance management, learning, and recruiting tools.