Zacks Research Upgrades Paycom Software (NYSE:PAYC) to Hold

Paycom Software (NYSE:PAYC) was upgraded by analysts at Zacks Research from a “strong sell” rating to a “hold” rating in a note issued to investors on Wednesday,Zacks.com reports.

Several other equities analysts have also issued reports on PAYC. TD Cowen decreased their price objective 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. Citigroup cut their price objective on shares of Paycom Software from $185.00 to $128.00 and set a “neutral” rating on the stock in a research report on Friday, February 13th. KeyCorp lowered their target price on Paycom Software from $250.00 to $195.00 and set an “overweight” rating for the company in a report on Thursday, February 12th. Mizuho reduced their price objective on Paycom Software from $180.00 to $120.00 and set a “neutral” rating for the company in a research report on Thursday, February 12th. Finally, BMO Capital Markets dropped their target price 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. Five investment analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, Paycom Software currently has an average rating of “Hold” and an average price target of $168.57.

Paycom Software Trading Down 3.0%

Shares of PAYC opened at $120.53 on Wednesday. The stock has a market cap of $6.78 billion, a P/E ratio of 14.90, a price-to-earnings-growth ratio of 1.36 and a beta of 0.79. Paycom Software has a 1 year low of $104.90 and a 1 year high of $267.76. The stock’s 50-day moving average price is $146.95 and its two-hundred day moving average price is $181.05.

Paycom Software (NYSE:PAYC) last announced its quarterly earnings results on Wednesday, February 11th. The software maker reported $2.45 EPS for the quarter, beating analysts’ consensus estimates of $2.44 by $0.01. Paycom Software had a return on equity of 24.25% and a net margin of 22.10%.The company had revenue of $544.30 million during the quarter, compared to analysts’ expectations of $542.79 million. During the same period in the prior year, the business posted $2.32 EPS. Paycom Software’s revenue was up 10.2% on a year-over-year basis. As a group, equities analysts forecast that Paycom Software will post 7.15 EPS for the current year.

Insider Buying and Selling

In other Paycom Software news, CFO Robert D. Foster sold 1,300 shares of the stock in a transaction on Wednesday, December 10th. The shares were sold at an average price of $162.66, for a total value of $211,458.00. Following the completion of the sale, the chief financial officer owned 14,747 shares in the company, valued at $2,398,747.02. This trade represents a 8.10% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. 10.90% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Paycom Software

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Reinhart Partners LLC. raised its stake in Paycom Software by 887.4% in the fourth quarter. Reinhart Partners LLC. now owns 598,323 shares of the software maker’s stock valued at $95,351,000 after buying an additional 537,726 shares during the period. Allianz Asset Management GmbH increased its holdings in shares of Paycom Software by 10,106.6% in the third quarter. Allianz Asset Management GmbH now owns 486,957 shares of the software maker’s stock valued at $101,355,000 after purchasing an additional 482,186 shares during the last quarter. Contour Asset Management LLC bought a new position in shares of Paycom Software in the fourth quarter valued at about $60,333,000. Two Sigma Investments LP boosted its holdings in shares of Paycom Software by 228.7% during the 3rd quarter. Two Sigma Investments LP now owns 532,124 shares of the software maker’s stock worth $110,756,000 after buying an additional 370,219 shares during the period. Finally, Invesco Ltd. grew its stake in Paycom Software by 28.2% in the 4th quarter. Invesco Ltd. now owns 1,559,682 shares of the software maker’s stock valued at $248,551,000 after buying an additional 343,494 shares during the last quarter. Institutional investors own 87.77% of the company’s stock.

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.