Paycom Software (NYSE:PAYC) Shares Down 4.8% – Time to Sell?

Paycom Software, Inc. (NYSE:PAYC)’s stock price fell 4.8% during trading on Tuesday . The stock traded as low as $130.15 and last traded at $131.6020. 212,735 shares changed hands during mid-day trading, a decline of 88% from the average session volume of 1,764,601 shares. The stock had previously closed at $138.25.

Wall Street Analyst Weigh In

Several analysts have issued reports on the stock. Citigroup cut their target price on shares of Paycom Software from $185.00 to $128.00 and set a “neutral” rating on the stock in a research note on Friday, February 13th. TD Cowen decreased their target price on Paycom Software from $200.00 to $184.00 and set a “buy” rating for the company in a research report on Thursday, January 8th. Cantor Fitzgerald lifted their price target on Paycom Software from $115.00 to $135.00 and gave the company a “neutral” rating in a report on Friday. BMO Capital Markets dropped their price target on Paycom Software from $175.00 to $137.00 and set a “market perform” rating on the stock in a research report on Thursday, February 12th. Finally, Weiss Ratings downgraded Paycom Software from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Tuesday, February 3rd. Five equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $170.71.

Paycom Software Stock Performance

The stock has a market cap of $7.18 billion, a price-to-earnings ratio of 16.36, a price-to-earnings-growth ratio of 1.49 and a beta of 0.80. The company’s 50 day simple moving average is $138.62 and its two-hundred day simple moving average is $172.35.

Paycom Software (NYSE:PAYC) last issued its earnings results on Wednesday, February 11th. The software maker reported $2.45 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.44 by $0.01. Paycom Software had a net margin of 22.10% and a return on equity of 24.25%. The company had revenue of $544.30 million during the quarter, compared to analyst estimates of $542.79 million. During the same quarter last year, the business posted $2.32 EPS. The company’s revenue for the quarter was up 10.2% on a year-over-year basis. On average, equities research analysts predict that Paycom Software, Inc. will post 7.15 earnings per share for the current fiscal year.

Paycom Software Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, March 23rd. Investors of record on Monday, March 9th will be given a dividend of $0.375 per share. The ex-dividend date of this dividend is Monday, March 9th. This represents a $1.50 dividend on an annualized basis and a yield of 1.1%. Paycom Software’s dividend payout ratio (DPR) is presently 18.54%.

Insider Buying and Selling

In other Paycom Software news, CFO Robert D. Foster sold 1,300 shares of the company’s stock in a transaction dated Wednesday, December 10th. The stock was sold at an average price of $162.66, for a total value of $211,458.00. Following the transaction, the chief financial officer directly owned 14,747 shares of the company’s stock, valued at $2,398,747.02. This represents a 8.10% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 10.90% of the stock is owned by company insiders.

Institutional Investors Weigh In On Paycom Software

Several institutional investors have recently made changes to their positions in PAYC. Corient Private Wealth LLC grew its stake in shares of Paycom Software by 218.3% in the 4th quarter. Corient Private Wealth LLC now owns 14,217 shares of the software maker’s stock valued at $2,266,000 after buying an additional 9,750 shares in the last quarter. Union Savings Bank bought a new position in Paycom Software during the fourth quarter valued at approximately $80,000. Hsbc Holdings PLC lifted its stake in Paycom Software by 25.5% in the fourth quarter. Hsbc Holdings PLC now owns 98,103 shares of the software maker’s stock valued at $15,651,000 after acquiring an additional 19,937 shares during the last quarter. Caitong International Asset Management Co. Ltd lifted its stake in Paycom Software by 66,500.0% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 666 shares of the software maker’s stock valued at $106,000 after acquiring an additional 665 shares during the last quarter. Finally, MidFirst Bank bought a new stake in Paycom Software in the fourth quarter worth approximately $802,000. 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.