Paycom Software (NYSE:PAYC) Reaches New 1-Year Low After Analyst Downgrade

Paycom Software, Inc. (NYSE:PAYC) shares hit a new 52-week low during mid-day 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 traded. The stock had previously closed at $152.29.

A number of other equities analysts have also weighed in on the stock. TD Cowen cut their target price on shares of Paycom Software from $200.00 to $184.00 and set a “buy” rating for the company in a research report on Thursday, January 8th. Zacks Research cut Paycom Software from a “hold” rating to a “strong sell” rating in a research report on Tuesday, January 20th. Mizuho decreased their price target on shares of Paycom Software from $220.00 to $180.00 and set a “neutral” rating on the stock in a report on Thursday, November 6th. Jefferies Financial Group decreased their price objective on Paycom Software from $225.00 to $190.00 and set a “hold” rating on the stock in a report on Thursday, November 6th. Finally, KeyCorp decreased their price objective 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 analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and an average price target of $209.64.

Insider Buying and Selling

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 sale, the chief financial officer directly 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 legal filing with the SEC, which is accessible through this link. Company insiders own 10.90% of the company’s stock.

Hedge Funds Weigh In On Paycom Software

Institutional investors and hedge funds have recently made changes to their positions in the business. True Wealth Design LLC boosted its position in shares of Paycom Software by 946.7% in the fourth quarter. True Wealth Design LLC now owns 157 shares of the software maker’s stock worth $25,000 after purchasing an additional 142 shares during the period. CYBER HORNET ETFs LLC purchased a new position in shares of Paycom Software in the 2nd quarter worth $29,000. Caitlin John LLC bought a new stake in Paycom Software during the third quarter worth approximately $29,000. Steigerwald Gordon & Koch Inc. bought a new stake in Paycom Software in the third quarter worth $31,000. Finally, MUFG Securities EMEA plc purchased a new position in shares of Paycom Software during the 2nd quarter worth about $33,000. Hedge funds and other institutional investors own 87.77% of the company’s stock.

Paycom Software Stock Down 3.3%

The stock has a market cap of $8.02 billion, a P/E ratio of 17.73, a PEG ratio of 1.51 and a beta of 0.82. The business has a 50 day moving average price of $158.87 and a 200 day moving average price of $192.73.

Paycom Software (NYSE:PAYC) last issued its 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 for the quarter, compared to analysts’ expectations of $492.62 million. During the same period last year, the business posted $1.67 earnings per share. The business’s revenue was up 9.2% compared to the same quarter last year. On average, research analysts expect that Paycom Software, Inc. will post 7.15 earnings per share for the current fiscal year.

Paycom Software Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, December 8th. Investors of record on Monday, November 24th were paid a dividend of $0.375 per share. This represents a $1.50 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date was Monday, November 24th. Paycom Software’s dividend payout ratio is 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.