Paycom Software (NYSE:PAYC) Trading Down 5.7% Following Analyst Downgrade

Paycom Software, Inc. (NYSE:PAYC) traded down 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. 126,806 shares were traded during mid-day trading, a decline of 83% from the average session volume of 757,123 shares. The stock had previously closed at $152.29.

Several other analysts have also weighed in on the company. TD Cowen lowered their target price on Paycom Software from $200.00 to $184.00 and set a “buy” rating on the stock in a report on Thursday, January 8th. Zacks Research cut shares of Paycom Software from a “hold” rating to a “strong sell” rating in a research note on Tuesday, January 20th. Jefferies Financial Group cut their target price on shares of Paycom Software from $225.00 to $190.00 and set a “hold” rating for the company in a research report on Thursday, November 6th. Mizuho reduced their price target on shares of Paycom Software from $220.00 to $180.00 and set a “neutral” rating on the stock in a report on Thursday, November 6th. Finally, KeyCorp dropped their price objective on shares of Paycom Software from $290.00 to $250.00 and set an “overweight” rating for the company in a research note on Thursday, November 6th. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus 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 company’s stock in a transaction on Wednesday, December 10th. The shares were sold at an average price of $162.66, for a total transaction of $211,458.00. Following the completion of the sale, the chief financial officer directly owned 14,747 shares of the company’s stock, valued at approximately $2,398,747.02. This represents a 8.10% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 10.90% of the company’s stock.

Institutional Investors Weigh In On Paycom Software

Several institutional investors and hedge funds have recently modified their holdings of PAYC. Vanguard Group Inc. grew its stake in shares of Paycom Software by 3.2% in the third quarter. Vanguard Group Inc. now owns 5,802,788 shares of the software maker’s stock valued at $1,207,792,000 after buying an additional 179,218 shares in the last quarter. State Street Corp boosted its holdings in Paycom Software by 2.8% in the 3rd quarter. State Street Corp now owns 2,157,127 shares of the software maker’s stock worth $448,984,000 after acquiring an additional 59,217 shares during the period. Baillie Gifford & Co. boosted its holdings in Paycom Software by 10.3% in the 3rd quarter. Baillie Gifford & Co. now owns 1,708,662 shares of the software maker’s stock worth $355,641,000 after acquiring an additional 158,967 shares during the period. Geode Capital Management LLC grew its position in Paycom Software by 5.3% in the second quarter. Geode Capital Management LLC now owns 1,661,685 shares of the software maker’s stock valued at $383,265,000 after acquiring an additional 83,154 shares in the last quarter. Finally, Invesco Ltd. raised its stake in shares of Paycom Software by 9.3% during the third quarter. Invesco Ltd. now owns 1,216,188 shares of the software maker’s stock valued at $253,137,000 after purchasing an additional 103,801 shares during the period. Hedge funds and other institutional investors own 87.77% of the company’s stock.

Paycom Software Stock Down 2.9%

The business’s 50 day moving average price is $159.57 and its 200-day moving average price is $193.85. The company has a market cap of $8.32 billion, a PE ratio of 18.38, a price-to-earnings-growth ratio of 1.56 and a beta of 0.82.

Paycom Software (NYSE:PAYC) last released 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 firm had revenue of $493.30 million for the quarter, compared to analyst estimates of $492.62 million. During the same period in the previous year, the business posted $1.67 earnings per share. Paycom Software’s revenue for the quarter was up 9.2% on a year-over-year basis. Equities analysts expect that Paycom Software, Inc. will post 7.15 earnings per share for the current year.

Paycom Software Dividend Announcement

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

Paycom Software Company Profile

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.