Paycom Software (NYSE:PAYC) Cut to Hold at Wall Street Zen

Wall Street Zen downgraded shares of Paycom Software (NYSE:PAYC) from a buy rating to a hold rating in a report released on Sunday,Wall Street Zen reports.

Other equities research analysts also recently issued research reports about the stock. KeyCorp lifted their target price on shares of Paycom Software from $195.00 to $270.00 and gave the stock an “overweight” rating in a research report on Thursday, August 6th. Zacks Research upgraded Paycom Software from a “hold” rating to a “strong-buy” rating in a research note on Monday, May 18th. BMO Capital Markets lifted their price objective on Paycom Software from $145.00 to $208.00 and gave the stock a “market perform” rating in a report on Thursday, August 6th. UBS Group upped their price objective on Paycom Software from $205.00 to $285.00 and gave the company a “buy” rating in a research report on Tuesday, September 1st. Finally, Stifel Nicolaus increased their target price on Paycom Software from $120.00 to $200.00 and gave the company a “hold” rating in a report on Thursday, August 6th. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and nine have issued a Hold rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $214.23.

Paycom Software Price Performance

PAYC opened at $219.21 on Friday. The company’s 50-day simple moving average is $186.28 and its two-hundred day simple moving average is $149.04. 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 stock has a market capitalization of $9.88 billion, a P/E ratio of 23.30, a P/E/G ratio of 1.29 and a beta of 0.78. Paycom Software has a 52-week low of $104.90 and a 52-week high of $244.98.

Paycom Software (NYSE:PAYC) last announced its quarterly earnings results on Wednesday, August 5th. The software maker reported $2.78 EPS for the quarter, topping analysts’ consensus estimates of $2.38 by $0.40. The firm had revenue of $531.20 million during the quarter, compared to analyst estimates of $513.12 million. Paycom Software had a net margin of 22.78% and a return on equity of 37.06%. The business’s revenue for the quarter was up 9.8% on a year-over-year basis. During the same period in the previous year, the business posted $2.06 earnings per share. As a group, analysts predict that Paycom Software will post 10.65 EPS for the current year.

Paycom Software Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, September 8th. Investors of record on Monday, August 24th were issued a $0.375 dividend. This represents a $1.50 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date of this dividend was Monday, August 24th. Paycom Software’s dividend payout ratio (DPR) is currently 15.94%.

Insiders Place Their Bets

In other Paycom Software news, insider Shane Hadlock sold 2,577 shares of the business’s stock in a transaction dated 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 sale, the insider owned 70,152 shares of the company’s stock, valued at approximately $16,668,115.20. The trade was a 3.54% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Company insiders own 13.20% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the stock. Brown Brothers Harriman & Co. increased its holdings in Paycom Software by 190.6% in the 4th quarter. Brown Brothers Harriman & Co. now owns 154 shares of the software maker’s stock worth $25,000 after acquiring an additional 101 shares in the last quarter. Clearstead Advisors LLC lifted its holdings in Paycom Software by 140.3% during the fourth quarter. Clearstead Advisors LLC now owns 161 shares of the software maker’s stock valued at $26,000 after purchasing an additional 94 shares in the last quarter. CYBER HORNET ETFs LLC bought a new position in shares of Paycom Software in the second quarter worth approximately $29,000. Caitlin John LLC bought a new position in shares of Paycom Software in the second quarter worth approximately $31,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. purchased a new stake in shares of Paycom Software in the second quarter worth $33,000. 87.77% of the stock is owned by hedge funds and other institutional investors.

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.