Paycom Software, Inc. (NYSE:PAYC) Receives Average Recommendation of “Hold” from Brokerages

Shares of Paycom Software, Inc. (NYSE:PAYC) have earned an average recommendation of “Hold” from the fourteen ratings firms that are covering the company, Marketbeat Ratings reports. One analyst has rated the stock with a sell rating, seven have assigned a hold rating, five have issued a buy rating and one has given a strong buy rating to the company. The average 12 month target price among brokerages that have issued ratings on the stock in the last year is $159.25.

A number of research analysts have recently commented on PAYC shares. BMO Capital Markets boosted their price target on shares of Paycom Software from $137.00 to $145.00 and gave the company a “market perform” rating in a research report on Thursday, May 7th. TD Cowen dropped their price objective on Paycom Software from $154.00 to $149.00 and set a “buy” rating for the company in a research note on Friday, June 26th. Weiss Ratings restated a “sell (d+)” rating on shares of Paycom Software in a research report on Friday, May 1st. Mizuho upped their target price on Paycom Software from $120.00 to $130.00 and gave the stock a “neutral” rating in a research note on Thursday, May 7th. Finally, BTIG Research raised their price target on Paycom Software from $140.00 to $160.00 and gave the company a “buy” rating in a report on Thursday, May 7th.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Brighton Jones LLC bought a new position in shares of Paycom Software in the fourth quarter worth approximately $638,000. AQR Capital Management LLC raised its holdings in Paycom Software by 23.7% during the 1st quarter. AQR Capital Management LLC now owns 19,155 shares of the software maker’s stock valued at $4,136,000 after buying an additional 3,674 shares during the last quarter. United Services Automobile Association purchased a new stake in Paycom Software during the 1st quarter valued at $215,000. Empowered Funds LLC boosted 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 buying an additional 1,480 shares during the period. Finally, Focus Partners Wealth grew its holdings in Paycom Software by 220.8% in the 1st 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 during the last quarter. Institutional investors own 87.77% of the company’s stock.

Paycom Software Stock Performance

Shares of NYSE PAYC traded up $4.24 during mid-day trading on Thursday, reaching $144.14. 149,307 shares of the company’s stock were exchanged, compared to its average volume of 1,425,832. The company has a debt-to-equity ratio of 0.83, a current ratio of 1.08 and a quick ratio of 1.08. The firm has a market capitalization of $6.87 billion, a price-to-earnings ratio of 16.66, a price-to-earnings-growth ratio of 1.19 and a beta of 0.80. Paycom Software has a 52 week low of $104.90 and a 52 week high of $248.95. The firm has a 50-day moving average price of $133.28 and a two-hundred day moving average price of $134.76.

Paycom Software (NYSE:PAYC) last posted its quarterly earnings results on Wednesday, May 6th. The software maker reported $3.15 EPS for the quarter, topping analysts’ consensus estimates of $2.99 by $0.16. Paycom Software had a net margin of 22.44% and a return on equity of 28.34%. The company had revenue of $571.80 million for the quarter, compared to analysts’ expectations of $564.37 million. During the same quarter in the previous year, the firm posted $2.80 EPS. Paycom Software’s revenue was up 7.8% on a year-over-year basis. Analysts predict that Paycom Software will post 9.32 EPS for the current year.

Paycom Software Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Monday, June 8th. Investors of record on Tuesday, May 26th were paid a $0.375 dividend. This represents a $1.50 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date of this dividend was Tuesday, May 26th. Paycom Software’s dividend payout ratio (DPR) is currently 17.34%.

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.