Bank of America Downgrades Paycom Software (NYSE:PAYC) to Neutral

Paycom Software (NYSE:PAYC) was downgraded by analysts at Bank of America from a “buy” rating to a “neutral” rating in a report issued on Thursday, MarketBeat reports. They presently have a $185.00 price objective on the software maker’s stock, down from their previous price objective of $330.00. Bank of America‘s target price points to a potential upside of 16.39% from the company’s current price.

Several other brokerages also recently issued reports on PAYC. Robert W. Baird cut their price objective on shares of Paycom Software from $443.00 to $427.00 and set an “outperform” rating for the company in a research report on Wednesday, August 2nd. KeyCorp downgraded Paycom Software from an “overweight” rating to a “sector weight” rating in a research note on Wednesday. TD Cowen downgraded Paycom Software from an “outperform” rating to a “market perform” rating and dropped their target price for the stock from $331.00 to $202.00 in a report on Wednesday. Oppenheimer reissued a “market perform” rating on shares of Paycom Software in a research report on Wednesday. Finally, Needham & Company LLC reaffirmed a “hold” rating on shares of Paycom Software in a research report on Wednesday. One equities research analyst has rated the stock with a sell rating, fourteen have assigned a hold rating and three have assigned a buy rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average target price of $275.50.

Paycom Software Stock Performance

Shares of NYSE PAYC opened at $158.95 on Thursday. The company has a current ratio of 1.24, a quick ratio of 1.24 and a debt-to-equity ratio of 0.02. The company has a market capitalization of $9.61 billion, a P/E ratio of 27.17, a P/E/G ratio of 1.08 and a beta of 1.40. Paycom Software has a 12 month low of $146.15 and a 12 month high of $374.04. The stock has a 50 day moving average of $263.61 and a 200-day moving average of $291.40.

Paycom Software (NYSE:PAYC) last released its quarterly earnings data on Tuesday, October 31st. The software maker reported $1.77 EPS for the quarter, topping analysts’ consensus estimates of $1.61 by $0.16. The firm had revenue of $406.30 million during the quarter, compared to analysts’ expectations of $411.17 million. Paycom Software had a net margin of 20.80% and a return on equity of 25.02%. The company’s revenue for the quarter was up 21.6% compared to the same quarter last year. During the same period in the previous year, the business posted $0.92 earnings per share. As a group, equities research analysts predict that Paycom Software will post 6.09 EPS for the current year.

Insider Transactions at Paycom Software

In related news, Director Jason D. Clark sold 130 shares of the firm’s stock in a transaction dated Friday, September 8th. The stock was sold at an average price of $287.36, for a total value of $37,356.80. Following the sale, the director now directly owns 4,970 shares of the company’s stock, valued at $1,428,179.20. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. In related news, EVP Christopher Gene Thomas sold 320 shares of the company’s stock in a transaction that occurred on Thursday, August 10th. The shares were sold at an average price of $290.05, for a total transaction of $92,816.00. Following the completion of the transaction, the executive vice president now directly owns 26,154 shares in the company, valued at approximately $7,585,967.70. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Jason D. Clark sold 130 shares of the stock in a transaction that occurred on Friday, September 8th. The shares were sold at an average price of $287.36, for a total transaction of $37,356.80. Following the completion of the transaction, the director now directly owns 4,970 shares of the company’s stock, valued at approximately $1,428,179.20. The disclosure for this sale can be found here. 14.50% of the stock is owned by insiders.

Institutional Trading of Paycom Software

Hedge funds and other institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. grew its position in Paycom Software by 1.3% during the 1st quarter. Vanguard Group Inc. now owns 5,535,044 shares of the software maker’s stock worth $1,917,229,000 after acquiring an additional 73,414 shares during the last quarter. Alliancebernstein L.P. grew its holdings in shares of Paycom Software by 59.6% during the second quarter. Alliancebernstein L.P. now owns 2,146,132 shares of the software maker’s stock worth $689,423,000 after purchasing an additional 801,539 shares during the last quarter. State Street Corp grew its holdings in shares of Paycom Software by 2.4% during the first quarter. State Street Corp now owns 1,911,316 shares of the software maker’s stock worth $581,056,000 after purchasing an additional 43,991 shares during the last quarter. FMR LLC increased its stake in shares of Paycom Software by 73.4% in the first quarter. FMR LLC now owns 1,629,628 shares of the software maker’s stock valued at $495,423,000 after buying an additional 689,600 shares during the period. Finally, Wellington Management Group LLP raised its holdings in Paycom Software by 8.7% in the 1st quarter. Wellington Management Group LLP now owns 1,359,073 shares of the software maker’s stock valued at $470,756,000 after buying an additional 108,505 shares during the last quarter. Institutional investors own 88.69% of the company’s stock.

Paycom Software Company Profile

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.