Paycom Software, Inc. (NYSE:PAYC) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Friday. The brokerage currently has a $87.00 price objective on the software maker’s stock. Zacks Investment Research‘s target price indicates a potential upside of 11.07% from the company’s previous close.

According to Zacks, “Provider of cloud-based HCM software as a service solution, Paycom has outperformed the broader market over the last one year. The company reported outstanding third-quarter 2017 results and provided an encouraging fourth-quarter and full-year 2017 revenue guidance. Revenue growth seems to be steady and was positively impacted by higher recurring revenues and higher traction in cloud-based offerings. Better-than-expected demand for advanced human capital management and payroll software solutions during the reported quarter were the other positives. Going ahead, Paycom might witness long-term growth by successfully cross-selling newer products to the existing client base, which will boost revenues. Nevertheless, competition from companies likes Paylocity Holding Corporation, Intuit Inc. and Paychex, Inc. remains a headwind.”

A number of other equities analysts also recently weighed in on the stock. Robert W. Baird reissued a “buy” rating and set a $82.00 target price on shares of Paycom Software in a research note on Wednesday. J P Morgan Chase & Co lifted their price target on shares of Paycom Software from $67.00 to $75.00 and gave the company a “neutral” rating in a research note on Wednesday. Oppenheimer Holdings, Inc. reiterated a “buy” rating and set a $88.00 price objective (up from $75.00) on shares of Paycom Software in a report on Wednesday. Barclays PLC lifted their price objective on shares of Paycom Software from $74.00 to $82.00 and gave the company an “overweight” rating in a report on Wednesday, September 13th. Finally, Stifel Nicolaus boosted their price target on shares of Paycom Software from $67.00 to $80.00 and gave the stock a “buy” rating in a report on Wednesday, August 2nd. Five equities research analysts have rated the stock with a hold rating, twelve have issued a buy rating and one has issued a strong buy rating to the stock. The company currently has an average rating of “Buy” and a consensus target price of $82.65.

Paycom Software (NYSE:PAYC) last announced its earnings results on Tuesday, October 31st. The software maker reported $0.29 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.19 by $0.10. Paycom Software had a net margin of 15.37% and a return on equity of 46.01%. The firm had revenue of $101.30 million for the quarter, compared to analyst estimates of $100.47 million. During the same quarter in the prior year, the business posted $0.15 EPS. The business’s revenue was up 31.0% compared to the same quarter last year.

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In related news, CFO Craig E. Boelte sold 11,000 shares of the stock in a transaction dated Tuesday, September 12th. The shares were sold at an average price of $74.72, for a total value of $821,920.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Stacey M. Pezold sold 10,000 shares of the stock in a transaction dated Friday, September 1st. The shares were sold at an average price of $75.02, for a total transaction of $750,200.00. The disclosure for this sale can be found here. Over the last quarter, insiders sold 61,000 shares of company stock valued at $4,564,520. 17.90% of the stock is owned by company insiders.

A number of hedge funds have recently made changes to their positions in PAYC. FMR LLC grew its position in Paycom Software by 172.9% during the 4th quarter. FMR LLC now owns 9,015,997 shares of the software maker’s stock valued at $410,138,000 after purchasing an additional 5,712,799 shares during the last quarter. Sylebra HK Co Ltd grew its position in Paycom Software by 823.9% during the 4th quarter. Sylebra HK Co Ltd now owns 3,488,635 shares of the software maker’s stock valued at $131,277,000 after purchasing an additional 3,111,048 shares during the last quarter. Capital World Investors grew its position in Paycom Software by 299.5% during the 3rd quarter. Capital World Investors now owns 3,974,571 shares of the software maker’s stock valued at $199,245,000 after purchasing an additional 2,979,732 shares during the last quarter. BlackRock Inc. grew its position in Paycom Software by 74,069.7% during the 1st quarter. BlackRock Inc. now owns 2,662,693 shares of the software maker’s stock valued at $153,132,000 after purchasing an additional 2,659,103 shares during the last quarter. Finally, Brown Capital Management LLC purchased a new stake in Paycom Software during the 4th quarter valued at about $102,935,000. 86.42% of the stock is currently owned by institutional investors.

Paycom Software Company Profile

Paycom Software, Inc is a provider of a cloud-based human capital management (HCM) software solution delivered as Software-as-a-Service (SaaS). The Company provides functionality and data analytics that businesses need to manage the complete employment life cycle from recruitment to retirement. The Company’s applications streamline client processes and provide clients and their employees with the ability to directly access and manage administrative processes, including applications that identify candidates, on-board employees, manage time and labor, administer payroll deductions and benefits, manage performance, terminate employees and administer post-termination health benefits, such as COBRA.

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Analyst Recommendations for Paycom Software (NYSE:PAYC)

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