Paycom Software (NYSE:PAYC) to Repurchase $550.00 million in Stock

Paycom Software (NYSE:PAYC – Get Rating) declared that its Board of Directors has authorized a stock buyback program on Tuesday, June 7th, RTT News reports. The company plans to buyback $550.00 million in outstanding shares. This buyback authorization authorizes the software maker to repurchase up to 3% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s board of directors believes its stock is undervalued.

NYSE:PAYC traded up $5.30 during mid-day trading on Tuesday, reaching $307.31. The stock had a trading volume of 248,601 shares, compared to its average volume of 523,431. The company has a debt-to-equity ratio of 0.03, a current ratio of 1.08 and a quick ratio of 1.08. Paycom Software has a 12 month low of $259.95 and a 12 month high of $558.97. The stock has a market capitalization of $18.52 billion, a PE ratio of 80.03, a P/E/G ratio of 2.78 and a beta of 1.54. The stock has a 50-day simple moving average of $301.37 and a two-hundred day simple moving average of $342.28.

Paycom Software (NYSE:PAYC – Get Rating) last released its quarterly earnings data on Tuesday, May 3rd. The software maker reported $1.90 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.75 by $0.15. The company had revenue of $353.52 million during the quarter, compared to the consensus estimate of $343.20 million. Paycom Software had a return on equity of 25.12% and a net margin of 19.64%. The firm’s revenue was up 29.9% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $1.10 earnings per share. Equities analysts expect that Paycom Software will post 4.3 EPS for the current year.

PAYC has been the topic of several recent analyst reports. Needham & Company LLC cut their price objective on shares of Paycom Software from $640.00 to $450.00 and set a “buy” rating on the stock in a report on Wednesday, February 9th. Jefferies Financial Group cut their price target on Paycom Software from $400.00 to $335.00 in a report on Monday, May 23rd. StockNews.com assumed coverage on shares of Paycom Software in a research report on Thursday, March 31st. They set a “hold” rating for the company. Oppenheimer reduced their price objective on shares of Paycom Software from $415.00 to $350.00 in a report on Wednesday, May 4th. Finally, Mizuho upped their price objective on shares of Paycom Software from $325.00 to $350.00 and gave the stock a “neutral” rating in a report on Wednesday, February 9th. One research analyst has rated the stock with a sell rating, five have given a hold rating and nine have assigned a buy rating to the stock. Based on data from MarketBeat, Paycom Software currently has an average rating of “Buy” and an average price target of $384.50.

In other Paycom Software news, insider Holly Faurot sold 5,431 shares of the company’s stock in a transaction that occurred on Wednesday, May 25th. The stock was sold at an average price of $277.55, for a total value of $1,507,374.05. Following the completion of the sale, the insider now owns 38,289 shares of the company’s stock, valued at $10,627,111.95. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Bradley Scott Smith sold 1,625 shares of the company’s stock in a transaction that occurred on Wednesday, May 11th. The shares were sold at an average price of $275.24, for a total value of $447,265.00. Following the transaction, the insider now owns 3,600 shares of the company’s stock, valued at approximately $990,864. The disclosure for this sale can be found here. Insiders have sold a total of 19,721 shares of company stock valued at $5,441,538 in the last quarter. Company insiders own 15.20% of the company’s stock.

About Paycom Software (Get Rating)

Paycom Software, Inc provides cloud-based human capital management (HCM) solution delivered as software-as-a-service for small to mid-sized companies in the United States. It offers functionality and data analytics that businesses need to manage the employment life cycle from recruitment to retirement.

See Also