Paycom Software (NYSE:PAYC) was upgraded by Zacks Investment Research from a “hold” rating to a “strong-buy” rating in a report released on Friday. The firm presently has a $97.00 price target on the software maker’s stock. Zacks Investment Research‘s price objective would indicate a potential upside of 17.01% 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 fourth-quarter 2017 results and provided an encouraging first-quarter and full year 2018 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.”
Several other equities research analysts have also weighed in on PAYC. Mizuho reissued a “hold” rating and issued a $70.00 price objective on shares of Paycom Software in a report on Thursday, October 12th. Royal Bank of Canada reissued a “hold” rating and issued a $74.00 price objective on shares of Paycom Software in a report on Wednesday, October 18th. Dougherty & Co started coverage on Paycom Software in a report on Tuesday, October 31st. They issued a “buy” rating and a $100.00 price objective for the company. KeyCorp reissued a “hold” rating on shares of Paycom Software in a report on Wednesday, November 1st. Finally, Northland Securities set a $85.00 price objective on Paycom Software and gave the stock a “buy” rating in a report on Wednesday, November 1st. Five investment analysts have rated the stock with a hold rating, twelve have assigned a buy rating and two have issued a strong buy rating to the company. Paycom Software presently has an average rating of “Buy” and an average price target of $87.94.
Paycom Software (NYSE:PAYC) last released its earnings results on Tuesday, February 6th. The software maker reported $0.29 EPS for the quarter, topping the Zacks’ consensus estimate of $0.24 by $0.05. Paycom Software had a return on equity of 45.18% and a net margin of 15.43%. The company had revenue of $114.00 million for the quarter, compared to analysts’ expectations of $113.01 million. During the same period in the previous year, the business posted $0.18 EPS. The business’s revenue for the quarter was up 29.8% compared to the same quarter last year. research analysts predict that Paycom Software will post 1.09 earnings per share for the current fiscal year.
In other Paycom Software news, insider Jeffrey D. York sold 50,000 shares of Paycom Software stock in a transaction dated Tuesday, January 2nd. The stock was sold at an average price of $79.97, for a total transaction of $3,998,500.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Robert J. Levenson sold 18,750 shares of Paycom Software stock in a transaction dated Tuesday, January 16th. The shares were sold at an average price of $88.89, for a total value of $1,666,687.50. The disclosure for this sale can be found here. Insiders have sold a total of 79,750 shares of company stock valued at $6,533,308 in the last ninety days. Insiders own 17.90% of the company’s stock.
A number of hedge funds have recently bought and sold shares of PAYC. Jennison Associates grew its holdings in Paycom Software by 169.2% during the 3rd quarter. Jennison Associates now owns 1,234,576 shares of the software maker’s stock valued at $44,334,000 after buying an additional 775,933 shares in the last quarter. Eagle Asset Management purchased a new position in shares of Paycom Software during the third quarter worth about $2,424,000. Fisher Asset Management grew its holdings in shares of Paycom Software by 10.8% during the fourth quarter. Fisher Asset Management now owns 93,909 shares of the software maker’s stock worth $3,534,000 after purchasing an additional 9,125 shares in the last quarter. Shinko Asset Management Co. Ltd. grew its holdings in shares of Paycom Software by 10.8% during the fourth quarter. Shinko Asset Management Co. Ltd. now owns 93,909 shares of the software maker’s stock worth $3,534,000 after purchasing an additional 9,125 shares in the last quarter. Finally, Bridgecreek Investment Management LLC grew its holdings in shares of Paycom Software by 0.9% during the fourth quarter. Bridgecreek Investment Management LLC now owns 165,575 shares of the software maker’s stock worth $6,231,000 after purchasing an additional 1,426 shares in the last quarter. 87.88% of the stock is owned by institutional investors and hedge funds.
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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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