Paycom Software (NYSE:PAYC) Reaches New 1-Year Low – Should You Sell?

Paycom Software, Inc. (NYSE:PAYC)’s stock price reached a new 52-week low on Wednesday . The stock traded as low as $121.30 and last traded at $121.4970, with a volume of 151387 shares trading hands. The stock had previously closed at $124.94.

Wall Street Analyst Weigh In

PAYC has been the topic of a number of recent analyst reports. BMO Capital Markets reissued a “market perform” rating and set a $175.00 price target on shares of Paycom Software in a report on Friday, January 16th. TD Cowen decreased their price objective 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. Citigroup cut their price target on Paycom Software from $191.00 to $185.00 and set a “neutral” rating for the company in a research note on Tuesday, December 23rd. Finally, 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 target on the stock. One equities research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, ten have given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $202.86.

Paycom Software Price Performance

The stock has a market capitalization of $6.68 billion, a price-to-earnings ratio of 14.78, a price-to-earnings-growth ratio of 1.36 and a beta of 0.79. The stock has a 50 day moving average price of $152.86 and a 200-day moving average price of $185.79.

Paycom Software Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, March 23rd. Investors of record on Monday, March 9th will be paid a dividend of $0.375 per share. This represents a $1.50 annualized dividend and a yield of 1.3%. The ex-dividend date of this dividend is Monday, March 9th. Paycom Software’s dividend payout ratio is currently 18.66%.

Insider Buying and Selling

In other Paycom Software news, CFO Robert D. Foster sold 1,300 shares of the firm’s stock in a transaction that occurred on Wednesday, December 10th. The shares were sold at an average price of $162.66, for a total value of $211,458.00. Following the transaction, the chief financial officer directly 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 document filed with the SEC, which is available through this hyperlink. Insiders own 10.90% of the company’s stock.

Institutional Investors Weigh In On Paycom Software

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Reinhart Partners LLC. boosted its stake in Paycom Software by 887.4% during the fourth quarter. Reinhart Partners LLC. now owns 598,323 shares of the software maker’s stock worth $95,351,000 after buying an additional 537,726 shares during the last quarter. Allianz Asset Management GmbH raised its holdings in shares of Paycom Software by 10,106.6% during the 3rd quarter. Allianz Asset Management GmbH now owns 486,957 shares of the software maker’s stock worth $101,355,000 after acquiring an additional 482,186 shares during the period. Two Sigma Investments LP raised its holdings in shares of Paycom Software by 228.7% during the 3rd quarter. Two Sigma Investments LP now owns 532,124 shares of the software maker’s stock worth $110,756,000 after acquiring an additional 370,219 shares during the period. Woodline Partners LP acquired a new position in shares of Paycom Software during the 3rd quarter valued at about $58,452,000. Finally, Robeco Institutional Asset Management B.V. grew its holdings in shares of Paycom Software by 230.9% in the fourth quarter. Robeco Institutional Asset Management B.V. now owns 341,286 shares of the software maker’s stock valued at $54,387,000 after purchasing an additional 238,155 shares during the period. Institutional investors and hedge funds own 87.77% of the company’s stock.

Paycom Software Company Profile

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.