Paycom Software, Inc. (NYSE:PAYC) Given Consensus Recommendation of “Moderate Buy” by Analysts

Paycom Software, Inc. (NYSE:PAYC) has earned a consensus recommendation of “Moderate Buy” from the fourteen analysts that are currently covering the stock, Marketbeat reports. Eight equities research analysts have rated the stock with a hold recommendation, five have given a buy recommendation and one has given a strong buy recommendation to the company. The average 1 year price objective among brokers that have issued a report on the stock in the last year is $159.75.

A number of equities research analysts recently weighed in on the company. Citigroup boosted their price objective on Paycom Software from $120.00 to $136.00 and gave the stock a “neutral” rating in a research report on Thursday, May 7th. Zacks Research upgraded Paycom Software from a “hold” rating to a “strong-buy” rating in a report on Monday, May 18th. Weiss Ratings raised Paycom Software from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Thursday, July 16th. BMO Capital Markets raised their price objective on shares of Paycom Software from $137.00 to $145.00 and gave the company a “market perform” rating in a report on Thursday, May 7th. Finally, Mizuho lifted their target price on shares of Paycom Software from $120.00 to $130.00 and gave the stock a “neutral” rating in a research report on Thursday, May 7th.

Paycom Software Price Performance

Shares of NYSE:PAYC opened at $145.71 on Monday. Paycom Software has a one year low of $104.90 and a one year high of $248.95. The company has a debt-to-equity ratio of 0.83, a current ratio of 1.08 and a quick ratio of 1.08. The company has a market cap of $6.94 billion, a price-to-earnings ratio of 16.84, a PEG ratio of 1.23 and a beta of 0.80. The firm has a 50 day simple moving average of $136.71 and a 200 day simple moving average of $133.12.

Paycom Software (NYSE:PAYC) last posted its earnings results on Wednesday, May 6th. The software maker reported $3.15 earnings per share for the quarter, topping analysts’ consensus estimates of $2.99 by $0.16. Paycom Software had a net margin of 22.44% and a return on equity of 28.34%. The firm had revenue of $571.80 million for the quarter, compared to analysts’ expectations of $564.37 million. During the same quarter in the previous year, the firm posted $2.80 earnings per share. The company’s revenue was up 7.8% on a year-over-year basis. Research analysts predict that Paycom Software will post 9.37 earnings per share for the current fiscal year.

Paycom Software Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, June 8th. Shareholders of record on Tuesday, May 26th were given a $0.375 dividend. This represents a $1.50 annualized dividend and a yield of 1.0%. The ex-dividend date was Tuesday, May 26th. Paycom Software’s dividend payout ratio is 17.34%.

Hedge Funds Weigh In On Paycom Software

A number of hedge funds have recently modified their holdings of the business. Reinhart Partners LLC. grew its stake in shares of Paycom Software by 887.4% in the fourth quarter. Reinhart Partners LLC. now owns 598,323 shares of the software maker’s stock worth $95,351,000 after purchasing an additional 537,726 shares during the last quarter. Contour Asset Management LLC bought a new stake in shares of Paycom Software in the 4th quarter valued at about $60,333,000. Two Sigma Investments LP grew its position in shares of Paycom Software by 228.7% in the 3rd quarter. Two Sigma Investments LP now owns 532,124 shares of the software maker’s stock valued at $110,756,000 after buying an additional 370,219 shares during the last quarter. Invesco Ltd. increased its stake in shares of Paycom Software by 28.2% in the fourth quarter. Invesco Ltd. now owns 1,559,682 shares of the software maker’s stock valued at $248,551,000 after buying an additional 343,494 shares during the period. Finally, River Road Asset Management LLC raised its position in shares of Paycom Software by 481.9% during the fourth quarter. River Road Asset Management LLC now owns 392,403 shares of the software maker’s stock worth $62,533,000 after acquiring an additional 324,970 shares during the last quarter. Institutional investors and hedge funds own 87.77% of the company’s stock.

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.