Paycom Software (NYSE:PAYC) Trading Up 8.1% – Time to Buy?

Paycom Software, Inc. (NYSE:PAYC)’s share price shot up 8.1% during mid-day trading on Tuesday . The stock traded as high as $161.90 and last traded at $163.6080. Approximately 116,622 shares traded hands during trading, a decline of 91% from the average session volume of 1,350,314 shares. The stock had previously closed at $151.30.

Wall Street Analyst Weigh In

Several research analysts recently weighed in on PAYC shares. Zacks Research raised shares of Paycom Software from a “hold” rating to a “strong-buy” rating in a research note on Monday, May 18th. UBS Group lowered their target price on shares of Paycom Software from $210.00 to $183.00 and set a “buy” rating for the company in a research note on Tuesday, April 21st. BTIG Research increased their target price on shares of Paycom Software from $140.00 to $160.00 and gave the stock a “buy” rating in a report on Thursday, May 7th. Mizuho lifted their price target on shares of Paycom Software from $120.00 to $130.00 and gave the stock a “neutral” rating in a research report on Thursday, May 7th. Finally, BMO Capital Markets boosted their price target on shares of Paycom Software from $137.00 to $145.00 and gave the company a “market perform” rating in a report on Thursday, May 7th. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and eight have assigned a Hold rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $159.75.

Paycom Software Trading Up 4.6%

The company has a current ratio of 1.08, a quick ratio of 1.08 and a debt-to-equity ratio of 0.83. The firm has a market capitalization of $8.06 billion, a P/E ratio of 19.56, a PEG ratio of 1.37 and a beta of 0.80. The business has a 50 day moving average of $138.02 and a 200-day moving average of $133.21.

Paycom Software (NYSE:PAYC) last released its quarterly earnings results on Wednesday, May 6th. The software maker reported $3.15 earnings per share for the quarter, beating the consensus estimate of $2.99 by $0.16. Paycom Software had a net margin of 22.44% and a return on equity of 28.34%. The company had revenue of $571.80 million during the quarter, compared to analysts’ expectations of $564.37 million. During the same quarter in the prior year, the company earned $2.80 earnings per share. The business’s quarterly revenue was up 7.8% compared to the same quarter last year. Analysts anticipate that Paycom Software, Inc. will post 9.37 EPS for the current fiscal year.

Paycom Software Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, June 8th. Investors of record on Tuesday, May 26th were given a $0.375 dividend. This represents a $1.50 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date of this dividend was Tuesday, May 26th. Paycom Software’s dividend payout ratio (DPR) is currently 17.34%.

Institutional Trading of Paycom Software

A number of hedge funds and other institutional investors have recently made changes to their positions in PAYC. Fulton Bank N.A. increased its stake in Paycom Software by 7.8% in the 2nd quarter. Fulton Bank N.A. now owns 2,070 shares of the software maker’s stock valued at $260,000 after buying an additional 149 shares during the last quarter. Fluent Financial LLC acquired a new position in Paycom Software during the second quarter valued at approximately $2,439,000. Legacy Wealth Asset Management LLC grew its stake in Paycom Software by 25.4% in the second quarter. Legacy Wealth Asset Management LLC now owns 7,277 shares of the software maker’s stock valued at $915,000 after purchasing an additional 1,475 shares in the last quarter. Valeo Financial Advisors LLC increased its position in shares of Paycom Software by 17.6% during the 2nd quarter. Valeo Financial Advisors LLC now owns 2,049 shares of the software maker’s stock worth $258,000 after purchasing an additional 306 shares during the last quarter. Finally, Reinhart Partners LLC. boosted its holdings in shares of Paycom Software by 20.1% in the 2nd quarter. Reinhart Partners LLC. now owns 1,219,906 shares of the software maker’s stock valued at $153,320,000 after buying an additional 204,191 shares during the last quarter. 87.77% of the stock is currently owned by institutional investors and hedge funds.

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.