Paycom Software (NYSE:PAYC) Reaches New 1-Year High – Still a Buy?

Shares of Paycom Software, Inc. (NYSE:PAYC) hit a new 52-week high on Wednesday. The company traded as high as $264.49 and last traded at $262.85, with a volume of 788,089 shares changing hands. The stock had previously closed at $253.00.

Analyst Ratings Changes

Several research firms have issued reports on PAYC. Bank of America began coverage on shares of Paycom Software in a research note on Tuesday, September 29th. They set an “underperform” rating and a $200.00 price objective for the company. BMO Capital Markets raised their target price on shares of Paycom Software from $145.00 to $208.00 and gave the company a “market perform” rating in a research note on Thursday, August 6th. TD Cowen lifted their target price on shares of Paycom Software from $244.00 to $286.00 and gave the company a “buy” rating in a report on Friday, October 2nd. Citigroup upped their price target on shares of Paycom Software from $136.00 to $194.00 and gave the stock a “neutral” rating in a research report on Friday, August 7th. Finally, JPMorgan Chase & Co. upped their price target on shares of Paycom Software from $140.00 to $264.00 and gave the stock a “neutral” rating in a research report on Tuesday, August 25th. Five investment analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $219.79.

Paycom Software Stock Performance

The company has a market capitalization of $12.30 billion, a price-to-earnings ratio of 29.01, a price-to-earnings-growth ratio of 1.40 and a beta of 0.82. The company has a debt-to-equity ratio of 1.57, a quick ratio of 1.07 and a current ratio of 1.07. The company’s fifty day simple moving average is $230.58 and its two-hundred day simple moving average is $172.91.

Paycom Software (NYSE:PAYC) last issued its earnings results on Wednesday, August 5th. The software maker reported $2.78 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.38 by $0.40. The business had revenue of $531.20 million for the quarter, compared to analyst estimates of $513.12 million. Paycom Software had a net margin of 22.78% and a return on equity of 37.06%. The company’s revenue for the quarter was up 9.8% on a year-over-year basis. During the same quarter in the prior year, the business posted $2.06 EPS. Equities research analysts predict that Paycom Software, Inc. will post 10.80 earnings per share for the current fiscal year.

Paycom Software Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, September 8th. Stockholders of record on Monday, August 24th were issued a $0.3750 dividend. The ex-dividend date of this dividend was Monday, August 24th. This represents a $1.50 annualized dividend and a dividend yield of 0.5%. Paycom Software’s payout ratio is 15.94%.

Insider Buying and Selling at Paycom Software

In related news, insider Shane Hadlock sold 241 shares of the stock in a transaction dated Friday, August 28th. The shares were sold at an average price of $240.07, for a total transaction of $57,856.87. Following the sale, the insider owned 69,911 shares in the company, valued at $16,783,533.77. This represents a 0.34% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 13.20% of the stock is currently owned by corporate insiders.

Institutional Trading of Paycom Software

Several hedge funds have recently made changes to their positions in PAYC. Fifth Third Wealth Advisors LLC lifted its stake in Paycom Software by 56.7% in the third quarter. Fifth Third Wealth Advisors LLC now owns 4,947 shares of the software maker’s stock valued at $1,077,000 after buying an additional 1,790 shares during the last quarter. Sterling Capital Management LLC grew its position in shares of Paycom Software by 157.8% during the third quarter. Sterling Capital Management LLC now owns 3,176 shares of the software maker’s stock worth $691,000 after acquiring an additional 1,944 shares during the last quarter. MBL Wealth LLC bought a new position in shares of Paycom Software during the third quarter worth about $316,000. Root Financial Partners LLC bought a new position in shares of Paycom Software during the third quarter worth about $73,000. Finally, Axxcess Wealth Management LLC acquired a new stake in shares of Paycom Software in the 3rd quarter worth about $202,000. Institutional investors own 87.77% of the company’s stock.

Paycom Software Company Profile

Paycom Software, Inc is a provider of cloud-based human capital management (HCM) software designed to help businesses manage employee-related processes through a unified platform. Its solutions support payroll, human resources, talent acquisition and management, time and labor management, compliance, and employee engagement.

The company’s software is intended to allow employers and employees to enter and manage workforce information within a single system. Its offerings include payroll processing, benefits administration, expense management, scheduling, performance management, learning, and recruiting tools.