Zacks Research Downgrades Paycom Software (NYSE:PAYC) to Strong Sell

Paycom Software (NYSE:PAYC) was downgraded by equities research analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a report issued on Tuesday,Zacks.com reports.

A number of other equities research analysts have also weighed in on the company. BMO Capital Markets restated a “market perform” rating and set a $175.00 price objective on shares of Paycom Software in a research report on Friday, January 16th. Jefferies Financial Group lowered their price objective on Paycom Software from $225.00 to $190.00 and set a “hold” rating for the company in a research note on Thursday, November 6th. Citigroup cut their target price on shares of Paycom Software from $191.00 to $185.00 and set a “neutral” rating on the stock in a research report on Tuesday, December 23rd. KeyCorp dropped their price target on shares of Paycom Software from $290.00 to $250.00 and set an “overweight” rating for the company in a research note on Thursday, November 6th. Finally, TD Cowen reduced their price objective on shares of Paycom Software from $200.00 to $184.00 and set a “buy” rating on the stock in a research note on Thursday, January 8th. One investment analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $212.14.

Paycom Software Stock Performance

Shares of PAYC opened at $149.13 on Tuesday. Paycom Software has a 52-week low of $145.61 and a 52-week high of $267.76. The firm has a market cap of $8.39 billion, a price-to-earnings ratio of 18.55, a PEG ratio of 1.51 and a beta of 0.82. The business’s fifty day moving average is $160.09 and its 200-day moving average is $195.25.

Paycom Software (NYSE:PAYC) last issued its earnings results on Wednesday, November 5th. The software maker reported $1.94 EPS for the quarter, missing the consensus estimate of $1.96 by ($0.02). The business had revenue of $493.30 million for the quarter, compared to analyst estimates of $492.62 million. Paycom Software had a return on equity of 24.79% and a net margin of 22.65%.The firm’s revenue was up 9.2% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.67 EPS. As a group, research analysts forecast that Paycom Software will post 7.15 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CFO Robert D. Foster sold 1,300 shares of Paycom Software stock in a transaction dated Wednesday, December 10th. The stock was sold at an average price of $162.66, for a total value of $211,458.00. Following the completion of the transaction, the chief financial officer directly owned 14,747 shares of the company’s stock, valued at approximately $2,398,747.02. This trade represents a 8.10% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders own 10.90% of the company’s stock.

Institutional Investors Weigh In On Paycom Software

Several institutional investors and hedge funds have recently made changes to their positions in the business. Vanguard Group Inc. boosted its holdings in shares of Paycom Software by 3.2% during the 3rd quarter. Vanguard Group Inc. now owns 5,802,788 shares of the software maker’s stock worth $1,207,792,000 after buying an additional 179,218 shares in the last quarter. State Street Corp increased its stake in Paycom Software by 2.8% in the third quarter. State Street Corp now owns 2,157,127 shares of the software maker’s stock valued at $448,984,000 after purchasing an additional 59,217 shares in the last quarter. Baillie Gifford & Co. raised its holdings in shares of Paycom Software by 10.3% during the third quarter. Baillie Gifford & Co. now owns 1,708,662 shares of the software maker’s stock valued at $355,641,000 after purchasing an additional 158,967 shares during the period. Geode Capital Management LLC raised its holdings in shares of Paycom Software by 5.3% during the second quarter. Geode Capital Management LLC now owns 1,661,685 shares of the software maker’s stock valued at $383,265,000 after purchasing an additional 83,154 shares during the period. Finally, Invesco Ltd. boosted its position in shares of Paycom Software by 9.3% during the 3rd quarter. Invesco Ltd. now owns 1,216,188 shares of the software maker’s stock worth $253,137,000 after purchasing an additional 103,801 shares in 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.