Paycom Software (NYSE:PAYC) Shares Gap Down on Analyst Downgrade

Shares of Paycom Software, Inc. (NYSE:PAYC) gapped down before the market opened on Thursday after Citigroup lowered their price target on the stock from $196.00 to $193.00. The stock had previously closed at $186.24, but opened at $180.00. Citigroup currently has a neutral rating on the stock. Paycom Software shares last traded at $164.00, with a volume of 463,044 shares traded.

Other analysts also recently issued reports about the company. UBS Group raised their target price on Paycom Software from $235.00 to $250.00 and gave the company a “buy” rating in a research note on Wednesday, January 10th. Piper Sandler increased their target price on Paycom Software from $185.00 to $190.00 and gave the stock a “neutral” rating in a report on Thursday, February 8th. BTIG Research initiated coverage on shares of Paycom Software in a research note on Tuesday, February 6th. They set a “neutral” rating for the company. Jefferies Financial Group reaffirmed a “hold” rating and issued a $195.00 price objective on shares of Paycom Software in a research note on Friday, January 5th. Finally, JPMorgan Chase & Co. boosted their target price on shares of Paycom Software from $165.00 to $175.00 and gave the stock a “neutral” rating in a research report on Thursday. Sixteen equities research analysts have rated the stock with a hold rating and four have given a buy rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $247.25.

Institutional Trading of Paycom Software

Several hedge funds have recently added to or reduced their stakes in the business. International Assets Investment Management LLC increased its position in Paycom Software by 16,173.6% during the 4th quarter. International Assets Investment Management LLC now owns 787,803 shares of the software maker’s stock valued at $162,855,000 after purchasing an additional 782,962 shares during the period. ValueAct Holdings L.P. purchased a new position in shares of Paycom Software in the 4th quarter worth $125,686,000. Meritage Group LP bought a new stake in shares of Paycom Software during the 3rd quarter valued at about $103,800,000. Boston Trust Walden Corp purchased a new stake in Paycom Software during the fourth quarter valued at approximately $48,865,000. Finally, DSM Capital Partners LLC purchased a new stake in shares of Paycom Software in the 3rd quarter worth $60,077,000. 87.77% of the stock is owned by institutional investors.

Paycom Software Price Performance

The firm has a market cap of $9.86 billion, a PE ratio of 20.86, a PEG ratio of 3.18 and a beta of 1.17. The business has a 50-day simple moving average of $189.34 and a 200 day simple moving average of $194.47.

Paycom Software (NYSE:PAYC) last issued its earnings results on Wednesday, February 7th. The software maker reported $1.93 earnings per share for the quarter, topping analysts’ consensus estimates of $1.78 by $0.15. Paycom Software had a net margin of 26.91% and a return on equity of 33.21%. The firm had revenue of $434.60 million during the quarter, compared to analyst estimates of $422.50 million. During the same quarter in the prior year, the business earned $1.38 earnings per share. Paycom Software’s revenue for the quarter was up 17.3% on a year-over-year basis. On average, equities analysts forecast that Paycom Software, Inc. will post 5.73 earnings per share for the current fiscal year.

Paycom Software Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Monday, June 10th. Investors of record on Tuesday, May 28th will be paid a dividend of $0.375 per share. The ex-dividend date of this dividend is Friday, May 24th. This represents a $1.50 dividend on an annualized basis and a dividend yield of 0.88%. Paycom Software’s dividend payout ratio is presently 18.27%.

Paycom Software Company Profile

Paycom Software, Inc provides cloud-based human capital management (HCM) solution delivered as software-as-a-service for small to mid-sized companies in the United States. It offers functionality and data analytics that businesses need to manage the employment life cycle from recruitment to retirement.