Paycom Software (NYSE:PAYC) Issues Quarterly Earnings Results

Paycom Software (NYSE:PAYC) posted its quarterly earnings data on Wednesday. The software maker reported $1.94 EPS for the quarter, missing the consensus estimate of $1.96 by ($0.02), FiscalAI reports. The company had revenue of $493.30 million for the quarter, compared to analysts’ expectations of $492.62 million. Paycom Software had a net margin of 21.22% and a return on equity of 25.40%. The firm’s revenue was up 9.2% on a year-over-year basis. During the same period in the prior year, the company earned $1.67 earnings per share. Paycom Software updated its FY 2025 guidance to EPS.

Paycom Software Stock Performance

Shares of PAYC traded down $19.74 during trading hours on Thursday, hitting $163.97. The stock had a trading volume of 2,049,565 shares, compared to its average volume of 644,379. The firm has a market cap of $9.49 billion, a P/E ratio of 22.19, a P/E/G ratio of 2.01 and a beta of 0.88. The company’s fifty day simple moving average is $208.39 and its 200 day simple moving average is $226.92. Paycom Software has a 12-month low of $156.50 and a 12-month high of $267.76.

Paycom Software Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, December 8th. Investors of record on Monday, November 24th will be given a $0.375 dividend. This represents a $1.50 annualized dividend and a dividend yield of 0.9%. The ex-dividend date of this dividend is Monday, November 24th. Paycom Software’s dividend payout ratio (DPR) is 20.30%.

Analyst Ratings Changes

Several equities analysts have issued reports on the company. Jefferies Financial Group dropped their target price on Paycom Software from $225.00 to $190.00 and set a “hold” rating on the stock in a research report on Thursday. Mizuho dropped their target price on Paycom Software from $220.00 to $180.00 and set a “neutral” rating on the stock in a research report on Thursday. Cantor Fitzgerald upgraded Paycom Software to a “hold” rating in a research report on Thursday, September 11th. Weiss Ratings restated a “hold (c)” rating on shares of Paycom Software in a report on Wednesday, October 8th. Finally, UBS Group lowered their price target on Paycom Software from $285.00 to $245.00 and set a “buy” rating on the stock in a report on Thursday. Four research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $226.92.

Insider Buying and Selling at Paycom Software

In other Paycom Software news, insider Bradley Scott Smith sold 1,500 shares of the firm’s stock in a transaction dated Friday, September 12th. The stock was sold at an average price of $223.27, for a total value of $334,905.00. Following the transaction, the insider directly owned 24,533 shares of the company’s stock, valued at $5,477,482.91. This trade represents a 5.76% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Company insiders own 10.90% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in PAYC. State Street Corp raised its position in Paycom Software by 8.4% in the second quarter. State Street Corp now owns 2,097,910 shares of the software maker’s stock valued at $485,456,000 after purchasing an additional 162,477 shares during the period. Sone Capital Management LLC acquired a new stake in shares of Paycom Software during the second quarter valued at about $10,904,000. Ameriprise Financial Inc. grew its stake in shares of Paycom Software by 63.8% during the second quarter. Ameriprise Financial Inc. now owns 78,650 shares of the software maker’s stock valued at $17,980,000 after acquiring an additional 30,642 shares in the last quarter. Engineers Gate Manager LP grew its stake in shares of Paycom Software by 655.7% during the second quarter. Engineers Gate Manager LP now owns 32,739 shares of the software maker’s stock valued at $7,576,000 after acquiring an additional 28,407 shares in the last quarter. Finally, Adage Capital Partners GP L.L.C. grew its stake in shares of Paycom Software by 35.2% during the second quarter. Adage Capital Partners GP L.L.C. now owns 44,600 shares of the software maker’s stock valued at $10,320,000 after acquiring an additional 11,600 shares in the last quarter. 87.77% of the stock is owned by hedge funds and other institutional investors.

Paycom Software Company Profile

Paycom Software, Inc provides cloud-based human capital management (HCM) solution delivered as software-as-a-service for small to mid-sized companies in the United States. It offers functionality and data analytics that businesses need to manage the employment life cycle from recruitment to retirement.