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

Paycom Software, Inc. (NYSE:PAYC)’s share price gapped down prior to trading 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 trading hands.

A number of other analysts also recently commented on the stock. UBS Group boosted their target price on shares of Paycom Software from $235.00 to $250.00 and gave the stock a “buy” rating in a report on Wednesday, January 10th. JPMorgan Chase & Co. lifted their price target on Paycom Software from $165.00 to $175.00 and gave the stock a “neutral” rating in a research note on Thursday. Barclays cut their price objective on Paycom Software from $193.00 to $184.00 and set an “equal weight” rating on the stock in a report on Thursday. Jefferies Financial Group reiterated a “hold” rating and issued a $195.00 target price on shares of Paycom Software in a report on Friday, January 5th. Finally, Piper Sandler upped their price target on shares of Paycom Software from $185.00 to $190.00 and gave the company a “neutral” rating in a research report on Thursday, February 8th. Sixteen research analysts have rated the stock with a hold rating and four have given a buy rating to the stock. According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $247.25.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. FDx Advisors Inc. increased its position in Paycom Software by 15.6% in the 1st quarter. FDx Advisors Inc. now owns 3,310 shares of the software maker’s stock worth $659,000 after buying an additional 446 shares during the period. Mediolanum International Funds Ltd acquired a new position in shares of Paycom Software in the 1st quarter worth approximately $6,525,000. Chevy Chase Trust Holdings LLC increased its stake in shares of Paycom Software by 1.2% in the first quarter. Chevy Chase Trust Holdings LLC now owns 28,055 shares of the software maker’s stock valued at $5,583,000 after buying an additional 338 shares in the last quarter. Avory & Company LLC lifted its position in shares of Paycom Software by 990.4% during the first quarter. Avory & Company LLC now owns 27,850 shares of the software maker’s stock worth $5,542,000 after purchasing an additional 25,296 shares in the last quarter. Finally, FORA Capital LLC boosted its position in Paycom Software by 353.3% in the 1st quarter. FORA Capital LLC now owns 26,513 shares of the software maker’s stock valued at $5,276,000 after buying an additional 20,664 shares during the last quarter. Institutional investors own 87.77% of the company’s stock.

Paycom Software Trading Up 2.7 %

The company has a fifty day simple moving average of $189.34 and a two-hundred day simple moving average of $194.47. The stock has a market capitalization of $9.86 billion, a P/E ratio of 20.86, a PEG ratio of 3.18 and a beta of 1.17.

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

Paycom Software Dividend Announcement

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