Paycom Software (NYSE:PAYC) Sets New 12-Month High – Still a Buy?

Shares of Paycom Software, Inc. (NYSE:PAYC) reached a new 52-week high during trading on Tuesday . The stock traded as high as $243.28 and last traded at $239.1360, with a volume of 30724 shares trading hands. The stock had previously closed at $239.10.

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on the stock. Stifel Nicolaus boosted their target price on shares of Paycom Software from $120.00 to $200.00 and gave the stock a “hold” rating in a report on Thursday, August 6th. Guggenheim upped their price objective on Paycom Software from $180.00 to $225.00 and gave the company a “buy” rating in a research report on Thursday, August 6th. BTIG Research raised their price objective on Paycom Software from $160.00 to $230.00 and gave the company a “buy” rating in a research note on Thursday, August 6th. KeyCorp lifted their target price on Paycom Software from $195.00 to $270.00 and gave the stock an “overweight” rating in a report on Thursday, August 6th. Finally, Barclays boosted their target price on Paycom Software from $154.00 to $210.00 and gave the company an “equal weight” rating in a research report on Thursday, August 6th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and nine have given a Hold rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus price target of $214.23.

Paycom Software Stock Up 0.4%

The company has a current ratio of 1.07, a quick ratio of 1.07 and a debt-to-equity ratio of 1.57. The firm has a market cap of $10.82 billion, a P/E ratio of 25.64, a P/E/G ratio of 1.32 and a beta of 0.75. The business has a 50-day moving average price of $173.53 and a 200-day moving average price of $144.39.

Paycom Software (NYSE:PAYC) last posted its earnings results on Wednesday, August 5th. The software maker reported $2.78 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.38 by $0.40. The company had revenue of $531.20 million for the quarter, compared to analyst estimates of $513.12 million. Paycom Software had a return on equity of 37.06% and a net margin of 22.78%.The firm’s quarterly revenue was up 9.8% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $2.06 earnings per share. On average, equities analysts forecast that Paycom Software, Inc. will post 10.65 EPS for the current fiscal year.

Paycom Software Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 8th. Investors of record on Monday, August 24th will be paid a $0.375 dividend. The ex-dividend date is Monday, August 24th. This represents a $1.50 dividend on an annualized basis and a yield of 0.6%. Paycom Software’s dividend payout ratio (DPR) is 15.94%.

Insider Activity

In other news, insider Terrell Shane Hadlock sold 2,577 shares of the firm’s stock in a transaction dated Thursday, August 27th. The stock was sold at an average price of $237.60, for a total value of $612,295.20. Following the completion of the transaction, the insider directly owned 70,152 shares in the company, valued at $16,668,115.20. This trade represents a 3.54% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. 13.20% of the stock is currently owned by insiders.

Institutional Trading of Paycom Software

A number of hedge funds and other institutional investors have recently made changes to their positions in PAYC. Brown Brothers Harriman & Co. raised its holdings in shares of Paycom Software by 190.6% during the fourth quarter. Brown Brothers Harriman & Co. now owns 154 shares of the software maker’s stock worth $25,000 after purchasing an additional 101 shares during the last quarter. Clearstead Advisors LLC boosted its holdings in Paycom Software by 140.3% in the fourth quarter. Clearstead Advisors LLC now owns 161 shares of the software maker’s stock valued at $26,000 after purchasing an additional 94 shares during the last quarter. CYBER HORNET ETFs LLC purchased a new stake in Paycom Software in the second quarter valued at $29,000. Caitlin John LLC purchased a new position in shares of Paycom Software during the 2nd quarter valued at about $31,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in shares of Paycom Software during the 2nd quarter valued at about $33,000. 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.