Paycom Software (NYSE:PAYC)‘s stock had its “buy” rating restated by research analysts at KeyCorp in a report released on Monday. They currently have a $105.00 price target on the software maker’s stock. KeyCorp’s price objective would suggest a potential upside of 24.25% from the company’s previous close.
The analysts wrote, “We view Paycom as a high-quality SaaS name and upgrade our rating to Overweight based on (1) a proven direct sales strategy that could sustain 20% + revenue growth via share gains irrespective of economic cycles, (2) a best- in-class efficiency model with >40% EBITDA margins, (3) low penetration of a large $26B+ TAM, (4) little to no ACA risk that has been tabled through 2019, and (5) a favorable risk/reward at 18x EV/EBITDA on 2019. We are establishing a PT of $105 and raising estimates on lower taxes and our new ASC 606 model. Key Investment Points The organic driven growth model is proven, consistent, and resilient. We have been impressed by Paycom’s ability to deliver steady and consistent organic growth leveraging a proven, direct sales strategy into 45 office locations at the end of last year. Revenue growth per location has consistently grown 20% in each of the last four years. An acceleration in new office locations this year (modeling 5 vs. 3 last year) gives us.””
PAYC has been the topic of several other research reports. Robert W. Baird reiterated a “buy” rating and set a $82.00 price target on shares of Paycom Software in a report on Wednesday, November 1st. JPMorgan Chase & Co. increased their price target on Paycom Software from $67.00 to $75.00 and gave the company a “neutral” rating in a report on Wednesday, November 1st. Oppenheimer reiterated a “buy” rating and set a $88.00 price target (up previously from $75.00) on shares of Paycom Software in a report on Wednesday, November 1st. Northland Securities set a $101.00 price target on Paycom Software and gave the company a “buy” rating in a report on Thursday, January 11th. Finally, Stifel Nicolaus reiterated a “buy” rating and set a $85.00 price target on shares of Paycom Software in a report on Friday, November 3rd. Four equities research analysts have rated the stock with a hold rating, thirteen have given a buy rating and two have given a strong buy rating to the company. Paycom Software currently has an average rating of “Buy” and a consensus target price of $88.56.
Paycom Software (NYSE:PAYC) last released its quarterly earnings data on Tuesday, February 6th. The software maker reported $0.29 EPS for the quarter, topping analysts’ consensus estimates of $0.24 by $0.05. Paycom Software had a return on equity of 45.18% and a net margin of 15.43%. The firm had revenue of $114.00 million for the quarter, compared to the consensus estimate of $113.01 million. During the same quarter in the prior year, the company posted $0.18 earnings per share. The firm’s revenue was up 29.8% on a year-over-year basis. equities analysts predict that Paycom Software will post 1.56 earnings per share for the current year.
In other news, insider Jeffrey D. York sold 50,000 shares of the firm’s stock in a transaction on Tuesday, January 2nd. The shares were sold at an average price of $79.97, for a total value of $3,998,500.00. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CFO Craig E. Boelte sold 11,000 shares of the firm’s stock in a transaction on Tuesday, December 12th. The stock was sold at an average price of $78.92, for a total transaction of $868,120.00. The disclosure for this sale can be found here. In the last 90 days, insiders sold 79,750 shares of company stock worth $6,533,308. 17.90% of the stock is currently owned by corporate insiders.
Institutional investors have recently made changes to their positions in the company. JPMorgan Chase & Co. lifted its position in Paycom Software by 96.1% in the third quarter. JPMorgan Chase & Co. now owns 1,172,756 shares of the software maker’s stock worth $87,664,000 after purchasing an additional 574,658 shares during the period. Jackson Square Partners LLC lifted its position in Paycom Software by 3.6% in the third quarter. Jackson Square Partners LLC now owns 1,019,455 shares of the software maker’s stock worth $76,418,000 after purchasing an additional 35,855 shares during the period. Dimensional Fund Advisors LP lifted its position in Paycom Software by 0.3% in the third quarter. Dimensional Fund Advisors LP now owns 945,552 shares of the software maker’s stock worth $70,878,000 after purchasing an additional 3,007 shares during the period. State Street Corp lifted its position in Paycom Software by 14.0% in the second quarter. State Street Corp now owns 911,240 shares of the software maker’s stock worth $62,337,000 after purchasing an additional 112,148 shares during the period. Finally, New York State Common Retirement Fund lifted its position in Paycom Software by 3.2% in the third quarter. New York State Common Retirement Fund now owns 772,867 shares of the software maker’s stock worth $57,934,000 after purchasing an additional 24,009 shares during the period. Institutional investors and hedge funds own 87.12% of the company’s stock.
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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