Paycom Software, Inc. (NYSE:PAYC) Receives Consensus Recommendation of “Hold” from Analysts

Paycom Software, Inc. (NYSE:PAYC) has been given an average rating of “Hold” by the fourteen research firms that are currently covering the company, MarketBeat Ratings reports. One analyst has rated the stock with a sell recommendation, seven have given a hold recommendation, five have given a buy recommendation and one has issued a strong buy recommendation on the company. The average 12-month price target among analysts that have updated their coverage on the stock in the last year is $159.6667.

A number of equities analysts have recently issued reports on PAYC shares. Cantor Fitzgerald upped their price target on Paycom Software from $115.00 to $135.00 and gave the stock a “neutral” rating in a research report on Friday, March 6th. Mizuho boosted their price objective on shares of Paycom Software from $120.00 to $130.00 and gave the company a “neutral” rating in a report on Thursday, May 7th. TD Cowen boosted their price objective on shares of Paycom Software from $148.00 to $154.00 and gave the company a “buy” rating in a report on Thursday, May 7th. Jefferies Financial Group dropped their price objective on shares of Paycom Software from $190.00 to $130.00 and set a “hold” rating on the stock in a report on Thursday, February 12th. Finally, Citigroup boosted their price objective on shares of Paycom Software from $120.00 to $136.00 and gave the company a “neutral” rating in a report on Thursday, May 7th.

Paycom Software Stock Performance

Shares of PAYC stock opened at $137.65 on Friday. The business’s fifty day simple moving average is $129.88 and its 200-day simple moving average is $139.66. The company has a market cap of $6.56 billion, a PE ratio of 15.91, a PEG ratio of 1.19 and a beta of 0.79. The company has a current ratio of 1.08, a quick ratio of 1.08 and a debt-to-equity ratio of 0.83. Paycom Software has a 12-month low of $104.90 and a 12-month high of $267.04.

Paycom Software (NYSE:PAYC) last issued its quarterly earnings results on Wednesday, May 6th. The software maker reported $3.15 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.99 by $0.16. The business had revenue of $571.80 million for the quarter, compared to the consensus estimate of $564.37 million. Paycom Software had a return on equity of 28.34% and a net margin of 22.44%.The business’s quarterly revenue was up 7.8% on a year-over-year basis. During the same period in the prior year, the firm posted $2.80 earnings per share. Analysts expect that Paycom Software will post 9.16 earnings per share for the current fiscal year.

Paycom Software Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, June 8th. Stockholders of record on Tuesday, May 26th will be issued a dividend of $0.375 per share. The ex-dividend date of this dividend is Tuesday, May 26th. This represents a $1.50 dividend on an annualized basis and a dividend yield of 1.1%. Paycom Software’s payout ratio is 17.34%.

Institutional Investors Weigh In On Paycom Software

A number of large investors have recently made changes to their positions in the stock. Vanguard Group Inc. grew its holdings in shares of Paycom Software by 3.2% during the third quarter. Vanguard Group Inc. now owns 5,802,788 shares of the software maker’s stock valued at $1,207,792,000 after buying an additional 179,218 shares during the last quarter. State Street Corp grew its holdings in shares of Paycom Software by 0.4% during the fourth quarter. State Street Corp now owns 2,165,546 shares of the software maker’s stock valued at $345,101,000 after buying an additional 8,419 shares during the last quarter. First Trust Advisors LP grew its holdings in shares of Paycom Software by 19.9% during the fourth quarter. First Trust Advisors LP now owns 1,665,529 shares of the software maker’s stock valued at $265,419,000 after buying an additional 275,954 shares during the last quarter. Invesco Ltd. grew its holdings in shares of Paycom Software by 28.2% during 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 last quarter. Finally, Federated Hermes Inc. grew its holdings in shares of Paycom Software by 12.7% during the fourth quarter. Federated Hermes Inc. now owns 624,371 shares of the software maker’s stock valued at $99,500,000 after buying an additional 70,208 shares during the last quarter. 87.77% of the stock is owned by hedge funds and other institutional investors.

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.