Paycom Software (NYSE:PAYC) Reaches New 1-Year Low Following Analyst Downgrade

Paycom Software, Inc. (NYSE:PAYC)’s share price hit a new 52-week low during mid-day trading on Tuesday after UBS Group lowered their price target on the stock from $245.00 to $210.00. UBS Group currently has a buy rating on the stock. Paycom Software traded as low as $142.88 and last traded at $147.8040, with a volume of 1749756 shares changing hands. The stock had previously closed at $152.29.

PAYC has been the subject of several other research reports. BTIG Research started coverage on shares of Paycom Software in a research note on Wednesday, December 17th. They issued a “buy” rating and a $195.00 target price for the company. KeyCorp reduced their price objective on shares of Paycom Software from $290.00 to $250.00 and set an “overweight” rating for the company in a research note on Thursday, November 6th. TD Cowen lowered their target price on shares of Paycom Software from $200.00 to $184.00 and set a “buy” rating on the stock in a report on Thursday, January 8th. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Paycom Software in a report on Monday, December 29th. Finally, JPMorgan Chase & Co. reduced their price target on Paycom Software from $235.00 to $220.00 and set a “neutral” rating for the company in a research report on Thursday, November 6th. One investment analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $209.64.

Insider Buying and Selling

In other Paycom Software news, CFO Robert D. Foster sold 1,300 shares of the firm’s stock in a transaction on Wednesday, December 10th. The shares were sold at an average price of $162.66, for a total value of $211,458.00. Following the completion of the transaction, the chief financial officer directly owned 14,747 shares of the company’s stock, valued at $2,398,747.02. This trade represents a 8.10% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 10.90% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Paycom Software

Several large investors have recently added to or reduced their stakes in the business. Brighton Jones LLC purchased a new position in Paycom Software during the fourth quarter worth about $638,000. AQR Capital Management LLC boosted its position in shares of Paycom Software by 23.7% during the 1st quarter. AQR Capital Management LLC now owns 19,155 shares of the software maker’s stock valued at $4,136,000 after acquiring an additional 3,674 shares during the last quarter. United Services Automobile Association purchased a new position in shares of Paycom Software during the first quarter worth about $215,000. Empowered Funds LLC grew its holdings in shares of Paycom Software by 22.8% during the first quarter. Empowered Funds LLC now owns 7,958 shares of the software maker’s stock worth $1,739,000 after purchasing an additional 1,480 shares in the last quarter. Finally, Focus Partners Wealth increased its position in shares of Paycom Software by 220.8% in the first quarter. Focus Partners Wealth now owns 3,940 shares of the software maker’s stock worth $861,000 after purchasing an additional 2,712 shares during the last quarter. Institutional investors own 87.77% of the company’s stock.

Paycom Software Price Performance

The firm has a market capitalization of $8.32 billion, a PE ratio of 18.38, a P/E/G ratio of 1.56 and a beta of 0.82. The business’s 50 day moving average is $159.25 and its two-hundred day moving average is $193.27.

Paycom Software (NYSE:PAYC) last released its quarterly earnings results on Wednesday, November 5th. The software maker reported $1.94 EPS for the quarter, missing analysts’ consensus estimates of $1.96 by ($0.02). The company had revenue of $493.30 million during the quarter, compared to analysts’ expectations of $492.62 million. Paycom Software had a return on equity of 24.79% and a net margin of 22.65%.Paycom Software’s quarterly revenue was up 9.2% on a year-over-year basis. During the same period in the prior year, the firm earned $1.67 EPS. Analysts expect that Paycom Software, Inc. will post 7.15 EPS for the current fiscal year.

Paycom Software Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Monday, December 8th. Investors of record on Monday, November 24th were paid a $0.375 dividend. This represents a $1.50 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date of this dividend was Monday, November 24th. Paycom Software’s dividend payout ratio is currently 18.66%.

Paycom Software Company Profile

Paycom Software, Inc (NYSE: PAYC) is a cloud-based human capital management (HCM) software provider that delivers an end-to-end solution for human resources, payroll, talent acquisition, time and labor management, and talent management. Its single-database platform enables organizations to process payroll, track time, administer benefits, and manage recruiting and employee development through a unified system. Paycom’s software is designed to streamline administrative tasks, improve data accuracy, and provide real-time reporting and analytics to support strategic HR decisions.

The company’s core offerings include payroll processing with built-in tax compliance, employee self-service functionality, automated time tracking, and customizable talent acquisition tools that allow employers to create and post job requisitions, screen candidates, and conduct onboarding electronically.