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

Paycom Software (NYSE:PAYC) was downgraded by stock analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a research note issued on Sunday, Wall Street Zen reports.

PAYC has been the subject of several other reports. Guggenheim increased their target price on Paycom Software from $180.00 to $225.00 and gave the company a “buy” rating in a report on Thursday, August 6th. Cantor Fitzgerald lifted their price target on Paycom Software from $135.00 to $195.00 and gave the stock a “neutral” rating in a research note on Thursday, August 6th. TD Cowen lifted their price target on Paycom Software from $149.00 to $244.00 and gave the stock a “buy” rating in a research note on Thursday, August 6th. JPMorgan Chase & Co. boosted their price objective on Paycom Software from $140.00 to $264.00 and gave the company a “neutral” rating in a research report on Tuesday, August 25th. Finally, 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. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and nine have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $214.23.

Paycom Software Price Performance

Shares of NYSE:PAYC opened at $231.81 on Friday. The stock has a market cap of $10.45 billion, a PE ratio of 24.63, a PEG ratio of 1.29 and a beta of 0.78. The company’s fifty day moving average is $184.41 and its 200 day moving average is $148.37. Paycom Software has a 52 week low of $104.90 and a 52 week high of $244.98. The company has a quick ratio of 1.07, a current ratio of 1.07 and a debt-to-equity ratio of 1.57.

Paycom Software (NYSE:PAYC) last posted 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. Paycom Software had a net margin of 22.78% and a return on equity of 37.06%. The business had revenue of $531.20 million during the quarter, compared to the consensus estimate of $513.12 million. During the same period in the previous year, the firm posted $2.06 earnings per share. The firm’s revenue for the quarter was up 9.8% on a year-over-year basis. Research analysts anticipate that Paycom Software will post 10.65 earnings per share for the current year.

Insider Activity

In other news, insider Shane Hadlock sold 2,577 shares of the firm’s stock in a transaction that occurred on Thursday, August 27th. The stock was sold at an average price of $237.60, for a total value of $612,295.20. Following the completion of the transaction, the insider owned 70,152 shares in the company, valued at $16,668,115.20. This trade represents a 3.54% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Corporate insiders own 13.20% of the company’s stock.

Institutional Investors Weigh In On Paycom Software

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Brighton Jones LLC bought a new stake in shares of Paycom Software during the 4th quarter valued at $638,000. AQR Capital Management LLC increased its stake in shares of Paycom Software by 23.7% in the 1st quarter. AQR Capital Management LLC now owns 19,155 shares of the software maker’s stock worth $4,136,000 after acquiring an additional 3,674 shares in the last quarter. United Services Automobile Association purchased a new position in Paycom Software during the 1st quarter valued at about $215,000. Empowered Funds LLC lifted its position in Paycom Software by 22.8% during the 1st quarter. Empowered Funds LLC now owns 7,958 shares of the software maker’s stock valued at $1,739,000 after acquiring an additional 1,480 shares during the period. Finally, Focus Partners Wealth boosted its stake in Paycom Software by 220.8% during the first quarter. Focus Partners Wealth now owns 3,940 shares of the software maker’s stock worth $861,000 after acquiring an additional 2,712 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 (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.