Paycom Software (NYSE:PAYC) Cut to Strong Sell at Zacks Research

Zacks Research downgraded shares of Paycom Software (NYSE:PAYC) from a hold rating to a strong sell rating in a research report sent to investors on Tuesday morning,Zacks.com reports.

PAYC has been the subject of a number of other research reports. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Paycom Software in a research report on Monday, December 29th. TD Cowen lowered their target price on Paycom Software from $200.00 to $184.00 and set a “buy” rating for the company in a report on Thursday, January 8th. Guggenheim began coverage on Paycom Software in a research report on Friday, September 26th. They set a “buy” rating and a $270.00 price target on the stock. BTIG Research began coverage on Paycom Software in a research report on Wednesday, December 17th. They set a “buy” rating and a $195.00 price objective for the company. Finally, BMO Capital Markets restated a “market perform” rating and set a $175.00 price objective on shares of Paycom Software in a research note on Friday, January 16th. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, Paycom Software presently has an average rating of “Hold” and a consensus price target of $212.14.

Paycom Software Trading Up 2.2%

PAYC stock opened at $152.41 on Tuesday. The stock’s 50 day simple moving average is $159.85 and its 200 day simple moving average is $194.96. Paycom Software has a 12-month low of $145.61 and a 12-month high of $267.76. The firm has a market cap of $8.58 billion, a P/E ratio of 18.96, a P/E/G ratio of 1.53 and a beta of 0.82.

Paycom Software (NYSE:PAYC) last released its quarterly earnings data on Wednesday, November 5th. The software maker reported $1.94 EPS for the quarter, missing analysts’ consensus estimates of $1.96 by ($0.02). The business had revenue of $493.30 million during the quarter, compared to analyst estimates of $492.62 million. Paycom Software had a return on equity of 24.79% and a net margin of 22.65%.The business’s revenue for the quarter was up 9.2% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.67 EPS. On average, research analysts forecast that Paycom Software will post 7.15 EPS for the current fiscal year.

Paycom Software Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Monday, December 8th. Shareholders of record on Monday, November 24th were given a dividend of $0.375 per share. This represents a $1.50 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date was Monday, November 24th. Paycom Software’s payout ratio is 18.66%.

Insider Activity

In other news, CFO Robert D. Foster sold 1,300 shares of the stock in a transaction on Wednesday, December 10th. The stock was sold at an average price of $162.66, for a total value of $211,458.00. Following the completion of the transaction, the chief financial officer owned 14,747 shares of the company’s stock, valued at approximately $2,398,747.02. This represents a 8.10% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Insiders own 10.90% of the company’s stock.

Institutional Investors Weigh In On Paycom Software

Several institutional investors have recently bought and sold shares of PAYC. True Wealth Design LLC increased its stake in Paycom Software by 946.7% during the 4th quarter. True Wealth Design LLC now owns 157 shares of the software maker’s stock valued at $25,000 after buying an additional 142 shares during the period. Caitlin John LLC bought a new position in shares of Paycom Software in the third quarter valued at approximately $29,000. CYBER HORNET ETFs LLC acquired a new position in shares of Paycom Software during the second quarter valued at approximately $29,000. Steigerwald Gordon & Koch Inc. acquired a new position in shares of Paycom Software during the third quarter valued at approximately $31,000. Finally, MUFG Securities EMEA plc bought a new stake in Paycom Software during the second quarter worth approximately $33,000. Institutional investors and hedge funds own 87.77% of the company’s stock.

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.