Paycom Software (NYSE:PAYC) Upgraded by StockNews.com to Buy

StockNews.com upgraded shares of Paycom Software (NYSE:PAYC) from a hold rating to a buy rating in a research report sent to investors on Friday morning.

A number of other equities analysts have also commented on PAYC. Needham & Company LLC reiterated a hold rating on shares of Paycom Software in a report on Thursday, May 2nd. Jefferies Financial Group reiterated a hold rating and issued a $195.00 price target on shares of Paycom Software in a research report on Friday, January 5th. Barclays decreased their price target on Paycom Software from $193.00 to $184.00 and set an equal weight rating for the company in a research note on Thursday, May 2nd. BMO Capital Markets cut their price objective on Paycom Software from $200.00 to $190.00 and set a market perform rating on the stock in a research note on Thursday, May 2nd. Finally, Citigroup decreased their target price on shares of Paycom Software from $196.00 to $193.00 and set a neutral rating for the company in a research report on Thursday, May 2nd. Sixteen research analysts have rated the stock with a hold rating and four have given a buy rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of Hold and a consensus price target of $246.31.

Paycom Software Price Performance

Shares of Paycom Software stock opened at $174.44 on Friday. The company’s 50 day moving average price is $189.23 and its two-hundred day moving average price is $192.74. The firm has a market capitalization of $10.14 billion, a P/E ratio of 21.25, a P/E/G ratio of 2.84 and a beta of 1.17. Paycom Software has a fifty-two week low of $146.15 and a fifty-two week high of $374.04.

Paycom Software (NYSE:PAYC) last announced its quarterly earnings results on Wednesday, February 7th. The software maker reported $1.93 EPS for the quarter, beating analysts’ consensus estimates of $1.78 by $0.15. The firm had revenue of $434.60 million for the quarter, compared to analyst estimates of $422.50 million. Paycom Software had a return on equity of 32.84% and a net margin of 26.91%. The business’s revenue for the quarter was up 17.3% on a year-over-year basis. During the same period last year, the firm posted $1.38 earnings per share. On average, analysts expect that Paycom Software will post 5.82 earnings per share for the current year.

Paycom Software Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Monday, June 10th. Investors of record on Tuesday, May 28th will be paid a dividend of $0.375 per share. This represents a $1.50 annualized dividend and a yield of 0.86%. The ex-dividend date is Friday, May 24th. Paycom Software’s dividend payout ratio is presently 18.27%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the stock. International Assets Investment Management LLC raised its holdings in Paycom Software by 16,173.6% during the fourth quarter. International Assets Investment Management LLC now owns 787,803 shares of the software maker’s stock worth $162,855,000 after buying an additional 782,962 shares during the last quarter. ValueAct Holdings L.P. acquired a new position in Paycom Software during the fourth quarter worth $125,686,000. Meritage Group LP acquired a new position in Paycom Software during the third quarter worth $103,800,000. Boston Trust Walden Corp acquired a new position in Paycom Software during the fourth quarter worth $48,865,000. Finally, DSM Capital Partners LLC acquired a new position in Paycom Software during the third quarter worth $60,077,000. 87.77% of the stock is owned by institutional investors.

About Paycom Software

Paycom Software, Inc provides cloud-based human capital management (HCM) solution delivered as software-as-a-service for small to mid-sized companies in the United States. It offers functionality and data analytics that businesses need to manage the employment life cycle from recruitment to retirement.