Paycom Software (NYSE:PAYC) Rating Increased to Strong-Buy at Zacks Research

Zacks Research upgraded shares of Paycom Software (NYSE:PAYC) from a hold rating to a strong-buy rating in a research note released on Monday morning,Zacks.com reports.

Several other analysts have also weighed in on the stock. TD Cowen raised their price objective on shares of Paycom Software from $148.00 to $154.00 and gave the stock a “buy” rating in a report on Thursday, May 7th. Barclays dropped their price objective on shares of Paycom Software from $150.00 to $148.00 and set an “equal weight” rating for the company in a report on Thursday, May 7th. Cantor Fitzgerald raised their price objective on shares of Paycom Software from $115.00 to $135.00 and gave the stock a “neutral” rating in a report on Friday, March 6th. BMO Capital Markets raised their price objective on shares of Paycom Software from $137.00 to $145.00 and gave the stock a “market perform” rating in a report on Thursday, May 7th. Finally, Jefferies Financial Group dropped their price objective on shares of Paycom Software from $190.00 to $130.00 and set a “hold” rating for the company in a report on Thursday, February 12th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $159.67.

Paycom Software Stock Performance

NYSE:PAYC opened at $141.29 on Monday. Paycom Software has a 12-month low of $104.90 and a 12-month high of $267.76. The company has a quick ratio of 1.08, a current ratio of 1.08 and a debt-to-equity ratio of 0.83. The firm has a market capitalization of $6.73 billion, a PE ratio of 16.33, a price-to-earnings-growth ratio of 1.22 and a beta of 0.77. The firm has a 50-day moving average price of $126.80 and a 200 day moving average price of $142.68.

Paycom Software (NYSE:PAYC) last posted its quarterly earnings data on Wednesday, May 6th. The software maker reported $3.15 earnings per share for the quarter, topping the consensus estimate of $2.99 by $0.16. The company had revenue of $571.80 million during the quarter, compared to analyst estimates of $564.37 million. Paycom Software had a net margin of 22.44% and a return on equity of 28.34%. The company’s revenue was up 7.8% on a year-over-year basis. During the same quarter last year, the business posted $2.80 earnings per share. Research analysts anticipate that Paycom Software will post 9.09 earnings per share for the current fiscal year.

Paycom Software Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, June 8th. Investors of record on Tuesday, May 26th will be issued a $0.375 dividend. The ex-dividend date of this dividend is Tuesday, May 26th. This represents a $1.50 dividend on an annualized basis and a dividend yield of 1.1%. Paycom Software’s dividend payout ratio (DPR) is currently 17.34%.

Hedge Funds Weigh In On Paycom Software

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. UMB Bank n.a. boosted its stake in Paycom Software by 7.6% in the third quarter. UMB Bank n.a. now owns 789 shares of the software maker’s stock valued at $164,000 after acquiring an additional 56 shares during the last quarter. Mackenzie Financial Corp boosted its stake in Paycom Software by 4.0% in the third quarter. Mackenzie Financial Corp now owns 1,624 shares of the software maker’s stock valued at $338,000 after acquiring an additional 63 shares during the last quarter. Davis Investment Partners LLC boosted its stake in Paycom Software by 2.3% in the fourth quarter. Davis Investment Partners LLC now owns 2,988 shares of the software maker’s stock valued at $455,000 after acquiring an additional 68 shares during the last quarter. Compound Planning Inc. boosted its stake in Paycom Software by 2.9% in the third quarter. Compound Planning Inc. now owns 2,899 shares of the software maker’s stock valued at $603,000 after acquiring an additional 83 shares during the last quarter. Finally, Boyd Watterson Asset Management LLC OH boosted its stake in Paycom Software by 0.8% in the third quarter. Boyd Watterson Asset Management LLC OH now owns 10,576 shares of the software maker’s stock valued at $2,201,000 after acquiring an additional 84 shares during the last quarter. 87.77% of the stock is owned by institutional investors.

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.