Paycom Software (NYSE:PAYC) Trading Up 8.1% – Time to Buy?

Paycom Software, Inc. (NYSE:PAYC) shares shot up 8.1% during trading on Tuesday . The stock traded as high as $161.90 and last traded at $163.6080. 116,622 shares changed hands during trading, a decline of 91% from the average daily volume of 1,350,314 shares. The stock had previously closed at $151.30.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently issued reports on the company. BMO Capital Markets lifted their target price on Paycom Software from $137.00 to $145.00 and gave the stock a “market perform” rating in a report on Thursday, May 7th. BTIG Research raised their price target on Paycom Software from $140.00 to $160.00 and gave the company a “buy” rating in a report on Thursday, May 7th. Weiss Ratings raised Paycom Software from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Thursday, July 16th. TD Cowen decreased their price objective on Paycom Software from $154.00 to $149.00 and set a “buy” rating on the stock in a report on Friday, June 26th. Finally, Barclays raised their target price on shares of Paycom Software from $148.00 to $154.00 and gave the company an “equal weight” rating in a report on Tuesday, July 21st. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and eight have issued a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $159.75.

Paycom Software Price Performance

The firm has a 50 day moving average price of $136.97 and a 200-day moving average price of $133.09. The firm has a market capitalization of $7.74 billion, a P/E ratio of 18.77, a price-to-earnings-growth ratio of 1.23 and a beta of 0.80. The company has a current ratio of 1.08, a quick ratio of 1.08 and a debt-to-equity ratio of 0.83.

Paycom Software (NYSE:PAYC) last released its quarterly earnings results on Wednesday, May 6th. The software maker reported $3.15 EPS for the quarter, topping analysts’ consensus estimates of $2.99 by $0.16. Paycom Software had a net margin of 22.44% and a return on equity of 28.34%. The firm had revenue of $571.80 million during the quarter, compared to analysts’ expectations of $564.37 million. During the same period in the previous year, the company earned $2.80 EPS. The firm’s revenue for the quarter was up 7.8% compared to the same quarter last year. On average, analysts expect that Paycom Software, Inc. will post 9.37 earnings per share for the current year.

Paycom Software Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, June 8th. Stockholders of record on Tuesday, May 26th were paid a dividend of $0.375 per share. This represents a $1.50 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date of this dividend was Tuesday, May 26th. Paycom Software’s payout ratio is currently 17.34%.

Institutional Trading of Paycom Software

Several institutional investors and hedge funds have recently modified their holdings of the stock. State Street Corp raised its position in Paycom Software by 0.4% during the 4th quarter. State Street Corp now owns 2,165,546 shares of the software maker’s stock valued at $345,101,000 after purchasing an additional 8,419 shares in the last quarter. First Trust Advisors LP lifted its holdings in Paycom Software by 19.9% during the fourth quarter. First Trust Advisors LP now owns 1,665,529 shares of the software maker’s stock worth $265,419,000 after buying an additional 275,954 shares during the period. Invesco Ltd. raised its position in shares of Paycom Software by 28.2% in the 4th quarter. Invesco Ltd. now owns 1,559,682 shares of the software maker’s stock worth $248,551,000 after acquiring an additional 343,494 shares in the last quarter. Reinhart Partners LLC. boosted its position in Paycom Software by 20.1% during the second quarter. Reinhart Partners LLC. now owns 1,219,906 shares of the software maker’s stock valued at $153,320,000 after purchasing an additional 204,191 shares in the last quarter. Finally, Federated Hermes Inc. lifted its position in shares of Paycom Software by 12.7% during the fourth quarter. Federated Hermes Inc. now owns 624,371 shares of the software maker’s stock valued at $99,500,000 after buying an additional 70,208 shares during the last quarter. Institutional investors 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.