Paycom Software (NYSE:PAYC) Rating Lowered to “Hold” at Zacks Research

Paycom Software (NYSE:PAYC) was downgraded by equities research analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a research report issued on Monday, Zacks reports.

A number of other research analysts also recently weighed in on PAYC. Bank of America initiated coverage on shares of Paycom Software in a research report on Tuesday, September 29th. They issued an “underperform” rating and a $200.00 price objective for the company. BMO Capital Markets increased their price objective on Paycom Software from $145.00 to $208.00 and gave the company a “market perform” rating in a research note on Thursday, August 6th. Stifel Nicolaus lifted their target price on shares of Paycom Software from $120.00 to $200.00 and gave the stock a “hold” rating in a research note on Thursday, August 6th. Cantor Fitzgerald raised their price target on shares of Paycom Software from $135.00 to $195.00 and gave the stock a “neutral” rating in a research note on Thursday, August 6th. Finally, BTIG Research upped their price target on Paycom Software from $160.00 to $230.00 and gave the company a “buy” rating in a research report on Thursday, August 6th. Five investment analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, Paycom Software has an average rating of “Hold” and an average target price of $216.93.

Paycom Software Trading Down 1.5%

Shares of Paycom Software stock opened at $222.30 on Monday. The company has a debt-to-equity ratio of 1.57, a current ratio of 1.07 and a quick ratio of 1.07. The firm has a fifty day moving average price of $217.67 and a 200 day moving average price of $162.44. Paycom Software has a 1 year low of $104.90 and a 1 year high of $244.98. The stock has a market cap of $10.02 billion, a PE ratio of 23.62, a price-to-earnings-growth ratio of 1.23 and a beta of 0.82.

Paycom Software (NYSE:PAYC) last announced its quarterly earnings results on Wednesday, August 5th. The software maker reported $2.78 earnings per share for the quarter, topping the consensus estimate of $2.38 by $0.40. The company had revenue of $531.20 million for the quarter, compared to the consensus estimate of $513.12 million. Paycom Software had a return on equity of 37.06% and a net margin of 22.78%.The firm’s revenue for the quarter was up 9.8% compared to the same quarter last year. During the same period last year, the firm earned $2.06 EPS. Equities research analysts predict that Paycom Software will post 10.64 earnings per share for the current year.

Insiders Place Their Bets

In other Paycom Software news, insider Shane Hadlock sold 241 shares of the firm’s stock in a transaction that occurred on Friday, August 28th. The shares were sold at an average price of $240.07, for a total value of $57,856.87. Following the completion of the transaction, the insider owned 69,911 shares of the company’s stock, valued at $16,783,533.77. This trade represents a 0.34% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. 13.20% of the stock is currently owned by insiders.

Institutional Trading of Paycom Software

Several hedge funds have recently added to or reduced their stakes in the company. BlackRock Inc. purchased a new stake in Paycom Software during the 2nd quarter worth about $632,460,000. Reinhart Partners LLC. grew its position in Paycom Software by 20.1% during the 2nd quarter. Reinhart Partners LLC. now owns 1,219,906 shares of the software maker’s stock worth $153,320,000 after purchasing an additional 204,191 shares during the last quarter. Goldman Sachs Group Inc. boosted its stake in shares of Paycom Software by 5.2% during the fourth quarter. Goldman Sachs Group Inc. now owns 552,470 shares of the software maker’s stock worth $88,042,000 after buying an additional 27,069 shares during the period. Dimensional Fund Advisors LP increased its position in Paycom Software by 10.1% in the 1st 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 during the period. Finally, River Road Asset Management LLC raised its stake in shares of Paycom Software by 481.9% during the fourth quarter. River Road Asset Management LLC now owns 392,403 shares of the software maker’s stock worth $62,533,000 after purchasing an additional 324,970 shares during the last quarter. Institutional investors and hedge funds own 87.77% of the company’s stock.

Paycom Software Company Profile

Paycom Software, Inc develops and provides cloud-based human capital management (HCM) software for businesses. Its platform is designed to help employers manage payroll and other workforce processes through a unified system, reducing the need for separate applications and manual data entry.

The company’s products and services include payroll processing, tax management, time and labor management, talent acquisition, onboarding, talent management, employee benefits administration, expense management, and workforce analytics.