Paycom Software (NYSE:PAYC) Reaches New 52-Week High After Earnings Beat

Paycom Software, Inc. (NYSE:PAYC)’s share price hit a new 52-week high during trading on Thursday following a stronger than expected earnings report. The stock traded as high as $248.56 and last traded at $235.58, with a volume of 71202 shares changing hands. The stock had previously closed at $228.67.

The software maker reported $2.80 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.62 by $0.18. The firm had revenue of $530.50 million for the quarter, compared to analyst estimates of $522.92 million. Paycom Software had a net margin of 26.66% and a return on equity of 33.53%. Paycom Software’s revenue was up 6.1% compared to the same quarter last year. During the same quarter last year, the business earned $2.59 earnings per share.

Paycom Software Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, June 9th. Investors of record on Tuesday, May 27th will be paid a $0.375 dividend. The ex-dividend date is Tuesday, May 27th. This represents a $1.50 annualized dividend and a yield of 0.60%. Paycom Software’s payout ratio is currently 16.85%.

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on PAYC. Needham & Company LLC reissued a “hold” rating on shares of Paycom Software in a research note on Thursday. Barclays boosted their target price on shares of Paycom Software from $221.00 to $240.00 and gave the company an “equal weight” rating in a report on Thursday. Stifel Nicolaus increased their price target on shares of Paycom Software from $187.00 to $215.00 and gave the stock a “hold” rating in a research note on Thursday. Piper Sandler boosted their price objective on shares of Paycom Software from $224.00 to $246.00 and gave the company a “neutral” rating in a research note on Thursday. Finally, StockNews.com lowered Paycom Software from a “buy” rating to a “hold” rating in a research report on Tuesday, March 4th. Eleven analysts have rated the stock with a hold rating and one has issued a buy rating to the company. According to data from MarketBeat, Paycom Software has an average rating of “Hold” and a consensus target price of $226.90.

Insider Transactions at Paycom Software

In other news, Director J C. Watts, Jr. sold 500 shares of Paycom Software stock in a transaction dated Monday, February 24th. The stock was sold at an average price of $218.22, for a total transaction of $109,110.00. Following the sale, the director now directly owns 7,730 shares of the company’s stock, valued at approximately $1,686,840.60. The trade was a 6.08 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, COO Randall Peck sold 3,600 shares of the stock in a transaction dated Friday, February 21st. The shares were sold at an average price of $212.19, for a total value of $763,884.00. Following the completion of the transaction, the chief operating officer now directly owns 50,665 shares of the company’s stock, valued at $10,750,606.35. This represents a 6.63 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 7,100 shares of company stock valued at $1,476,024 over the last quarter. Company insiders own 10.90% of the company’s stock.

Hedge Funds Weigh In On Paycom Software

A number of institutional investors have recently made changes to their positions in PAYC. Glass Jacobson Investment Advisors llc raised its holdings in Paycom Software by 746.7% in the fourth quarter. Glass Jacobson Investment Advisors llc now owns 127 shares of the software maker’s stock valued at $26,000 after acquiring an additional 112 shares in the last quarter. von Borstel & Associates Inc. bought a new position in shares of Paycom Software during the first quarter worth about $27,000. Murphy & Mullick Capital Management Corp bought a new position in shares of Paycom Software during the fourth quarter worth about $30,000. Golden State Wealth Management LLC increased its holdings in Paycom Software by 112.3% in the first quarter. Golden State Wealth Management LLC now owns 138 shares of the software maker’s stock valued at $30,000 after buying an additional 73 shares during the last quarter. Finally, MassMutual Private Wealth & Trust FSB raised its stake in Paycom Software by 135.9% during the first quarter. MassMutual Private Wealth & Trust FSB now owns 151 shares of the software maker’s stock valued at $33,000 after buying an additional 87 shares in the last quarter. 87.77% of the stock is owned by institutional investors and hedge funds.

Paycom Software Trading Up 9.2 %

The company has a market cap of $14.44 billion, a price-to-earnings ratio of 28.05, a price-to-earnings-growth ratio of 2.40 and a beta of 0.80. The firm has a 50-day moving average price of $217.13 and a 200 day moving average price of $214.02.

About Paycom Software

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.