Paycom Software, Inc. (PAYC) Downgraded by Zacks Investment Research
Zacks Investment Research cut shares of Paycom Software, Inc. (NYSE:PAYC) from a buy rating to a hold rating in a report published on Friday morning.
According to Zacks, “Provider of cloud-based HCM software as a service solution, Paycom has outperformed the industry over the last one year. Revenue growth seems to be steady and was positively impacted by higher recurring revenues and higher traction in cloud-based offerings. Better-than-expected demand for advanced human capital management and payroll software solutions during the reported quarter were the other positives. We believe that the higher adoption of Paycom Software’s Affordable Care Act (“ACA”) dashboard application that tracks employee count, employee status and health care plan affordability will act as a tailwind in the long run. Going ahead, Paycom might witness long-term growth by successfully cross-selling newer products to the existing client base, which will boost revenues. Nevertheless, competition from peers remains a headwind.”
Several other research firms also recently weighed in on PAYC. UBS AG restated a buy rating on shares of Paycom Software in a research note on Wednesday, May 3rd. Barclays PLC restated a buy rating and issued a $74.00 price target on shares of Paycom Software in a research note on Wednesday, July 19th. Jefferies Group LLC upped their price target on Paycom Software from $69.00 to $73.00 and gave the stock a buy rating in a research note on Wednesday, May 3rd. Canaccord Genuity upped their price target on Paycom Software from $70.00 to $80.00 and gave the stock a buy rating in a research note on Tuesday, June 27th. Finally, Oppenheimer Holdings, Inc. upped their price target on Paycom Software from $65.00 to $75.00 and gave the stock an outperform rating in a research note on Wednesday, August 2nd. Four analysts have rated the stock with a hold rating, nine have assigned a buy rating and one has assigned a strong buy rating to the stock. The company presently has a consensus rating of Buy and an average price target of $75.36.
Paycom Software (NYSE PAYC) opened at 72.77 on Friday. Paycom Software has a 12 month low of $39.15 and a 12 month high of $74.82. The stock’s 50 day moving average is $70.15 and its 200-day moving average is $63.20. The company has a market capitalization of $4.22 billion, a PE ratio of 78.93 and a beta of 1.75.
Paycom Software (NYSE:PAYC) last released its earnings results on Tuesday, August 1st. The software maker reported $0.24 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.13 by $0.11. The company had revenue of $98.20 million during the quarter, compared to analyst estimates of $95.98 million. Paycom Software had a net margin of 14.28% and a return on equity of 35.77%. The firm’s quarterly revenue was up 32.9% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.21 EPS. On average, analysts expect that Paycom Software will post $1.15 EPS for the current year.
In other news, insider Jeffrey D. York sold 40,000 shares of the stock in a transaction that occurred on Monday, July 3rd. The stock was sold at an average price of $66.93, for a total transaction of $2,677,200.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Stacey M. Pezold sold 30,000 shares of the stock in a transaction that occurred on Monday, June 19th. The shares were sold at an average price of $70.15, for a total value of $2,104,500.00. The disclosure for this sale can be found here. 17.90% of the stock is currently owned by corporate insiders.
Several hedge funds and other institutional investors have recently bought and sold shares of PAYC. Lord Abbett & CO. LLC increased its position in Paycom Software by 43.6% in the second quarter. Lord Abbett & CO. LLC now owns 562,989 shares of the software maker’s stock worth $38,514,000 after buying an additional 170,932 shares in the last quarter. HWG Holdings LP increased its position in Paycom Software by 100.0% in the second quarter. HWG Holdings LP now owns 34,223 shares of the software maker’s stock worth $2,341,000 after buying an additional 17,110 shares in the last quarter. Dynamic Technology Lab Private Ltd purchased a new position in Paycom Software during the second quarter worth approximately $455,000. Koch Industries Inc. purchased a new position in Paycom Software during the second quarter worth approximately $271,000. Finally, 1st Global Advisors Inc. increased its position in Paycom Software by 1.4% in the second quarter. 1st Global Advisors Inc. now owns 5,567 shares of the software maker’s stock worth $381,000 after buying an additional 75 shares in the last quarter. Hedge funds and other institutional investors own 86.05% of the company’s stock.
Paycom Software Company Profile
Paycom Software, Inc is a provider of a cloud-based human capital management (HCM) software solution delivered as Software-as-a-Service (SaaS). The Company provides functionality and data analytics that businesses need to manage the complete employment life cycle from recruitment to retirement. The Company’s applications streamline client processes and provide clients and their employees with the ability to directly access and manage administrative processes, including applications that identify candidates, on-board employees, manage time and labor, administer payroll deductions and benefits, manage performance, terminate employees and administer post-termination health benefits, such as COBRA.
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