Paycom Software (NYSE:PAYC) Trading Down 5.7% on Analyst Downgrade

Shares of Paycom Software, Inc. (NYSE:PAYC) traded down 5.7% during mid-day trading on Monday 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 $146.52 and last traded at $143.6350. 126,806 shares were traded during trading, a decline of 83% from the average session volume of 757,123 shares. The stock had previously closed at $152.29.

Other equities research analysts also recently issued reports about the stock. Zacks Research downgraded shares of Paycom Software from a “hold” rating to a “strong sell” rating in a research report on Tuesday, January 20th. KeyCorp cut their price target on Paycom Software from $290.00 to $250.00 and set an “overweight” rating for the company in a research note on Thursday, November 6th. Mizuho lowered their price objective on Paycom Software from $220.00 to $180.00 and set a “neutral” rating for the company in a research note on Thursday, November 6th. Jefferies Financial Group dropped their target price on Paycom Software from $225.00 to $190.00 and set a “hold” rating on the stock in a report on Thursday, November 6th. Finally, Weiss Ratings reiterated a “hold (c-)” rating on shares of Paycom Software in a report on Monday, December 29th. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Hold” and an average price target of $209.64.

Insider Activity at Paycom Software

In related news, CFO Robert D. Foster sold 1,300 shares of Paycom Software stock in a transaction on Wednesday, December 10th. The stock was sold at an average price of $162.66, for a total transaction of $211,458.00. Following the sale, the chief financial officer directly owned 14,747 shares in the company, valued at approximately $2,398,747.02. This trade represents a 8.10% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Insiders own 10.90% of the company’s stock.

Institutional Investors Weigh In On Paycom Software

A number of hedge funds have recently made changes to their positions in the business. UMB Bank n.a. grew its position in Paycom Software by 7.6% during the third quarter. UMB Bank n.a. now owns 789 shares of the software maker’s stock valued at $164,000 after buying an additional 56 shares during the period. ORG Wealth Partners LLC boosted its stake in Paycom Software by 4.4% in the third quarter. ORG Wealth Partners LLC now owns 1,390 shares of the software maker’s stock valued at $289,000 after acquiring an additional 59 shares during the last quarter. Applied Finance Capital Management LLC grew its position in shares of Paycom Software by 4.3% during the 2nd quarter. Applied Finance Capital Management LLC now owns 1,425 shares of the software maker’s stock valued at $330,000 after acquiring an additional 59 shares during the period. Wallace Advisory Group LLC grew its position in shares of Paycom Software by 2.7% during the 2nd quarter. Wallace Advisory Group LLC now owns 2,262 shares of the software maker’s stock valued at $494,000 after acquiring an additional 60 shares during the period. Finally, Mackenzie Financial Corp increased its stake in shares of Paycom Software by 4.0% during the 3rd quarter. Mackenzie Financial Corp now owns 1,624 shares of the software maker’s stock worth $338,000 after purchasing an additional 63 shares during the last quarter. 87.77% of the stock is currently owned by institutional investors.

Paycom Software Trading Down 3.3%

The business’s fifty day moving average is $158.87 and its 200 day moving average is $192.73. The company has a market cap of $8.02 billion, a P/E ratio of 17.73, a PEG ratio of 1.51 and a beta of 0.82.

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

Paycom Software Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, December 8th. Shareholders of record on Monday, November 24th were given a dividend of $0.375 per share. This represents a $1.50 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date was Monday, November 24th. Paycom Software’s dividend payout ratio (DPR) is currently 18.66%.

About Paycom Software

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.