Paycom Software (NYSE:PAYC) Hits New 52-Week Low After Analyst Downgrade

Paycom Software, Inc. (NYSE:PAYC)’s stock price reached a new 52-week low during trading on Tuesday after UBS Group lowered their price target on the stock from $245.00 to $210.00. UBS Group currently has a buy rating on the stock. Paycom Software traded as low as $142.88 and last traded at $147.8040, with a volume of 1749756 shares. The stock had previously closed at $152.29.

A number of other research analysts have also weighed in on the stock. Jefferies Financial Group dropped their price objective on shares of Paycom Software from $225.00 to $190.00 and set a “hold” rating on the stock in a research note on Thursday, November 6th. BMO Capital Markets restated a “market perform” rating and issued a $175.00 target price on shares of Paycom Software in a report on Friday, January 16th. Weiss Ratings reiterated a “hold (c-)” rating on shares of Paycom Software in a research note on Monday, December 29th. Mizuho decreased their price objective on Paycom Software from $220.00 to $180.00 and set a “neutral” rating for the company in a report on Thursday, November 6th. Finally, KeyCorp dropped their target price on Paycom Software from $290.00 to $250.00 and set an “overweight” rating on the stock in a report on Thursday, November 6th. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Paycom Software currently has a consensus rating of “Hold” and a consensus target price of $209.64.

Insider Activity at Paycom Software

In other Paycom Software news, CFO Robert D. Foster sold 1,300 shares of Paycom Software stock in a transaction that occurred on Wednesday, December 10th. The shares were sold at an average price of $162.66, for a total transaction of $211,458.00. Following the transaction, the chief financial officer owned 14,747 shares of the company’s stock, valued at $2,398,747.02. This trade represents a 8.10% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. 10.90% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. Brighton Jones LLC bought a new stake in shares of Paycom Software during the 4th quarter worth $638,000. AQR Capital Management LLC increased its holdings in Paycom Software by 23.7% during the first quarter. AQR Capital Management LLC now owns 19,155 shares of the software maker’s stock worth $4,136,000 after buying an additional 3,674 shares during the last quarter. United Services Automobile Association bought a new stake in Paycom Software in the first quarter worth about $215,000. Empowered Funds LLC raised its position in Paycom Software by 22.8% in the first quarter. Empowered Funds LLC now owns 7,958 shares of the software maker’s stock worth $1,739,000 after acquiring an additional 1,480 shares during the period. Finally, Focus Partners Wealth boosted its stake in Paycom Software by 220.8% in the first quarter. Focus Partners Wealth now owns 3,940 shares of the software maker’s stock valued at $861,000 after acquiring an additional 2,712 shares during the last quarter. Hedge funds and other institutional investors own 87.77% of the company’s stock.

Paycom Software Trading Down 2.9%

The stock’s 50-day moving average price is $159.25 and its two-hundred day moving average price is $193.27. The stock has a market capitalization of $8.32 billion, a P/E ratio of 18.38, a P/E/G ratio of 1.56 and a beta of 0.82.

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

Paycom Software Announces Dividend

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

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.