Paycom Software (NYSE:PAYC) Hits New 12-Month High Following Earnings Beat

Paycom Software, Inc. (NYSE:PAYC) reached a new 52-week high on Thursday following a better than expected earnings announcement. The stock traded as high as $248.56 and last traded at $235.58, with a volume of 71202 shares. The stock had previously closed at $228.67.

The software maker reported $2.80 earnings per share for the quarter, topping analysts’ consensus estimates of $2.62 by $0.18. Paycom Software had a net margin of 26.66% and a return on equity of 33.53%. The business had revenue of $530.50 million for the quarter, compared to analysts’ expectations of $522.92 million. During the same period in the prior year, the company posted $2.59 EPS. The business’s revenue for the quarter was up 6.1% on a year-over-year basis.

Paycom Software Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, June 9th. Stockholders of record on Tuesday, May 27th will be given a dividend of $0.375 per share. The ex-dividend date is Tuesday, May 27th. This represents a $1.50 dividend on an annualized basis and a dividend yield of 0.59%. Paycom Software’s payout ratio is 16.85%.

Wall Street Analysts Forecast Growth

PAYC has been the subject of several research analyst reports. JPMorgan Chase & Co. raised their price objective on Paycom Software from $185.00 to $200.00 and gave the company a “neutral” rating in a research note on Thursday, February 13th. Citigroup dropped their price target on Paycom Software from $234.00 to $221.00 and set a “neutral” rating for the company in a research report on Thursday, January 16th. BMO Capital Markets boosted their price objective on shares of Paycom Software from $215.00 to $244.00 and gave the stock a “market perform” rating in a research report on Thursday. KeyCorp increased their price objective on shares of Paycom Software from $245.00 to $270.00 and gave the company an “overweight” rating in a research note on Thursday. Finally, Needham & Company LLC restated a “hold” rating on shares of Paycom Software in a research report on Thursday. Eleven equities research analysts have rated the stock with a hold rating and one has given a buy rating to the company. Based on data from MarketBeat, Paycom Software currently has an average rating of “Hold” and a consensus price target of $226.90.

Insider Transactions at Paycom Software

In other Paycom Software news, CEO Chad R. Richison sold 120,000 shares of the stock in a transaction on Thursday, May 8th. The stock was sold at an average price of $243.52, for a total transaction of $29,222,400.00. Following the transaction, the chief executive officer now owns 3,307,249 shares of the company’s stock, valued at $805,381,276.48. This represents a 3.50 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. Also, insider Bradley Scott Smith sold 3,000 shares of the firm’s stock in a transaction on Thursday, March 13th. The stock was sold at an average price of $201.01, for a total value of $603,030.00. Following the sale, the insider now owns 28,733 shares in the company, valued at $5,775,620.33. This trade represents a 9.45 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 127,100 shares of company stock worth $30,698,424 over the last ninety days. 10.90% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Paycom Software

Several large investors have recently added to or reduced their stakes in the business. Proficio Capital Partners LLC purchased a new stake in Paycom Software in the 4th quarter valued at about $7,142,000. Glenview Trust co grew its holdings in Paycom Software by 27.1% in the fourth quarter. Glenview Trust co now owns 12,294 shares of the software maker’s stock valued at $2,520,000 after purchasing an additional 2,625 shares during the period. Friedenthal Financial acquired a new position in Paycom Software during the fourth quarter worth approximately $776,000. Nisa Investment Advisors LLC increased its position in Paycom Software by 175.7% during the fourth quarter. Nisa Investment Advisors LLC now owns 7,351 shares of the software maker’s stock worth $1,507,000 after purchasing an additional 4,685 shares during the last quarter. Finally, American Century Companies Inc. raised its stake in Paycom Software by 43.0% during the fourth quarter. American Century Companies Inc. now owns 52,755 shares of the software maker’s stock worth $10,813,000 after purchasing an additional 15,852 shares during the period. 87.77% of the stock is currently owned by hedge funds and other institutional investors.

Paycom Software Stock Performance

The stock’s fifty day simple moving average is $217.84 and its two-hundred day simple moving average is $214.62. The company has a market cap of $14.63 billion, a price-to-earnings ratio of 28.42, a price-to-earnings-growth ratio of 2.40 and a beta of 0.80.

Paycom Software Company Profile

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.