Zacks Investment Research cut shares of Paycom Software, Inc. (NYSE:PAYC) from a hold rating to a sell rating in a research report sent to investors on Tuesday morning.

According to Zacks, “Paycom Software reported outstanding fourth-quarter 2016 results beating the Zacks Consensus Estimate on both lines. The company also provided positive revenue outlook. Revenue growth seems to be steady and was positively impacted by higher recurring revenues and higher traction in cloud-based offerings. Going forward, better-than-expected demand for advanced human capital management and payroll software solutions during the reported quarter were the other positives. On the flip side, competition from companies like Paylocity Holding Corporation, Intuit Inc. and Paychex, Inc. remains a headwind. Also, Paycom is affected by weak economic conditions as employment levels tend to decline and interest rates may become more volatile. We believe that this will cause Paycom to come under pressure, thereby reducing revenue growth potential in the future.”

Several other equities research analysts have also commented on the stock. Jefferies Group LLC reiterated a buy rating and issued a $52.00 price objective on shares of Paycom Software in a research note on Thursday, February 9th. Canaccord Genuity reiterated a buy rating and issued a $55.00 price objective on shares of Paycom Software in a research note on Friday, February 3rd. Oppenheimer Holdings, Inc. assumed coverage on shares of Paycom Software in a research note on Thursday, December 1st. They issued an outperform rating and a $55.00 price objective for the company. Finally, J P Morgan Chase & Co lowered shares of Paycom Software from an overweight rating to a neutral rating and set a $53.00 price objective for the company. in a research note on Wednesday, November 2nd. They noted that the move was a valuation call. One research analyst has rated the stock with a sell rating, four have given a hold rating and seven have assigned a buy rating to the company’s stock. The company currently has an average rating of Buy and a consensus price target of $54.36.

Analyst Recommendations for Paycom Software (NYSE:PAYC)

Shares of Paycom Software (NYSE:PAYC) opened at 52.42 on Tuesday. The company has a market capitalization of $3.01 billion, a PE ratio of 70.84 and a beta of 1.71. The firm’s 50-day moving average price is $48.02 and its 200 day moving average price is $48.01. Paycom Software has a 1-year low of $27.21 and a 1-year high of $52.93.

Paycom Software (NYSE:PAYC) last posted its quarterly earnings data on Wednesday, February 8th. The company reported $0.18 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.13 by $0.05. The firm earned $87.80 million during the quarter, compared to analyst estimates of $86.43 million. Paycom Software had a net margin of 13.32% and a return on equity of 28.63%. The company’s revenue for the quarter was up 34.9% on a year-over-year basis. During the same quarter last year, the business posted $0.10 EPS. Equities analysts predict that Paycom Software will post $1.02 EPS for the current fiscal year.

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In related news, insider Chad R. Richison purchased 25,000 shares of the firm’s stock in a transaction dated Tuesday, December 13th. The stock was bought at an average price of $45.73 per share, for a total transaction of $1,143,250.00. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Company insiders own 18.70% of the company’s stock.

Several large investors have recently modified their holdings of the company. Thrivent Financial for Lutherans bought a new stake in shares of Paycom Software during the fourth quarter valued at about $45,409,000. Congress Asset Management Co. MA bought a new stake in shares of Paycom Software during the fourth quarter valued at about $510,000. Ladenburg Thalmann Financial Services Inc. raised its stake in shares of Paycom Software by 144.7% in the fourth quarter. Ladenburg Thalmann Financial Services Inc. now owns 3,201 shares of the company’s stock valued at $146,000 after buying an additional 1,893 shares during the last quarter. Guggenheim Capital LLC bought a new stake in shares of Paycom Software during the fourth quarter valued at about $273,000. Finally, Brandywine Managers LLC bought a new stake in shares of Paycom Software during the fourth quarter valued at about $308,000. Institutional investors own 76.40% of the company’s stock.

Paycom Software Company Profile

Paycom Software, Inc (Paycom) is a provider of cloud-based human capital management (HCM) software solution delivered as software as a service (SaaS). The Company’s solution is based on a system of record maintained in a single database for all HCM functions, including talent acquisition, time and labor management, payroll, talent management and human resources (HR) management applications.

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