Paycom Software Inc (NYSE:PAYC) Upgraded to Buy at Zacks Investment Research
Zacks Investment Research upgraded shares of Paycom Software Inc (NYSE:PAYC) from a hold rating to a buy rating in a research report released on Friday. They currently have $78.00 target price on the software maker’s stock.
According to Zacks, “Provider of cloud-based HCM software as a service solution, Paycom has outperformed the broader industry over the last one year. Revenue growth seems to be steady and was positively impacted by higher recurring revenues and higher traction in cloud-based offerings. Better-than-expected demand for advanced human capital management and payroll software solutions during the reported quarter were the other positives. We believe that the higher adoption of Paycom Software’s Affordable Care Act (“ACA”) dashboard application that tracks employee count, employee status and health care plan affordability will act as a tailwind in the long run. Going ahead, Paycom might witness long-term growth by successfully cross-selling newer products to the existing client base, which will boost revenues. Nevertheless, competition from peers remains a headwind.”
A number of other analysts have also recently issued reports on PAYC. KeyCorp boosted their price objective on Paycom Software to $94.00 in a research report on Wednesday. Jefferies Group LLC restated a buy rating and set a $83.00 price objective (up from $73.00) on shares of Paycom Software in a research report on Wednesday. Credit Suisse Group boosted their price objective on Paycom Software from $70.00 to $78.00 and gave the company an outperform rating in a research report on Wednesday. Canaccord Genuity boosted their price objective on Paycom Software from $80.00 to $85.00 and gave the company a buy rating in a research report on Wednesday. Finally, Oppenheimer Holdings, Inc. boosted their price objective on Paycom Software from $65.00 to $75.00 and gave the company an outperform rating in a research report on Wednesday. Three research analysts have rated the stock with a hold rating and eleven have issued a buy rating to the stock. The company currently has a consensus rating of Buy and a consensus price target of $75.36.
Paycom Software (PAYC) traded up 0.13% during trading on Friday, reaching $69.48. 568,571 shares of the company’s stock were exchanged. The company has a market capitalization of $4.03 billion, a price-to-earnings ratio of 75.77 and a beta of 1.75. The stock’s 50-day moving average price is $69.35 and its 200-day moving average price is $60.49. Paycom Software has a 52-week low of $39.15 and a 52-week high of $73.61.
Paycom Software (NYSE:PAYC) last issued its quarterly earnings results on Tuesday, August 1st. The software maker reported $0.24 EPS for the quarter, topping analysts’ consensus estimates of $0.13 by $0.11. Paycom Software had a return on equity of 39.17% and a net margin of 14.48%. The company had revenue of $98.20 million during the quarter, compared to analyst estimates of $95.98 million. During the same period in the previous year, the company earned $0.21 earnings per share. The company’s quarterly revenue was up 32.9% compared to the same quarter last year. Equities analysts expect that Paycom Software will post $1.15 earnings per share for the current year.
In other Paycom Software news, insider Jeffrey D. York sold 40,000 shares of the company’s stock in a transaction on Monday, July 3rd. The stock was sold at an average price of $66.93, for a total value of $2,677,200.00. The sale was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, insider Stacey M. Pezold sold 30,000 shares of the company’s stock in a transaction on Monday, June 19th. The shares were sold at an average price of $70.15, for a total value of $2,104,500.00. The disclosure for this sale can be found here. Corporate insiders own 17.90% of the company’s stock.
A number of hedge funds have recently made changes to their positions in the stock. Strs Ohio boosted its stake in shares of Paycom Software by 342.9% in the first quarter. Strs Ohio now owns 3,100 shares of the software maker’s stock worth $178,000 after buying an additional 2,400 shares during the period. Bfsg LLC bought a new stake in shares of Paycom Software during the first quarter worth $203,000. Ameritas Investment Partners Inc. bought a new stake in shares of Paycom Software during the first quarter worth $219,000. Eqis Capital Management Inc. bought a new stake in shares of Paycom Software during the first quarter worth $240,000. Finally, Blair William & Co. IL bought a new stake in shares of Paycom Software during the first quarter worth $243,000. Hedge funds and other institutional investors own 90.83% of the company’s stock.
About Paycom Software
Paycom Software, Inc is a provider of a cloud-based human capital management (HCM) software solution delivered as Software-as-a-Service (SaaS). The Company provides functionality and data analytics that businesses need to manage the complete employment life cycle from recruitment to retirement. The Company’s applications streamline client processes and provide clients and their employees with the ability to directly access and manage administrative processes, including applications that identify candidates, on-board employees, manage time and labor, administer payroll deductions and benefits, manage performance, terminate employees and administer post-termination health benefits, such as COBRA.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for Paycom Software Inc Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Paycom Software Inc and related companies with MarketBeat.com's FREE daily email newsletter.