Paycom Software (NYSE:PAYC) Stock Rating Reaffirmed by Needham & Company LLC

Needham & Company LLC restated their buy rating on shares of Paycom Software (NYSE:PAYC) in a report published on Monday, AnalystRatings.com reports. They currently have a $250.00 price target on the software maker’s stock.

A number of other equities analysts have also commented on the stock. Royal Bank of Canada lifted their price target on shares of Paycom Software from $278.00 to $345.00 and gave the stock a positive rating in a report on Thursday, February 6th. Oppenheimer lowered their target price on shares of Paycom Software from $325.00 to $255.00 and set an outperform rating for the company in a research note on Tuesday, March 17th. Robert W. Baird lifted their target price on shares of Paycom Software from $245.00 to $310.00 and gave the stock an outperform rating in a research note on Thursday, February 6th. Jefferies Financial Group lifted their target price on shares of Paycom Software from $233.00 to $290.00 and gave the stock a hold rating in a research note on Thursday, February 6th. Finally, Cantor Fitzgerald lifted their target price on shares of Paycom Software from $234.00 to $314.00 and gave the stock a neutral rating in a research note on Thursday, February 6th. Ten research analysts have rated the stock with a hold rating and seven have given a buy rating to the company. The company has an average rating of Hold and an average target price of $270.06.

Shares of NYSE:PAYC traded up $18.56 during mid-day trading on Monday, reaching $229.21. 1,086,709 shares of the company’s stock were exchanged, compared to its average volume of 1,137,270. The firm has a market capitalization of $12.61 billion, a price-to-earnings ratio of 74.18, a PEG ratio of 2.49 and a beta of 1.22. The business’s fifty day moving average price is $266.06 and its 200-day moving average price is $253.15. The company has a debt-to-equity ratio of 0.06, a quick ratio of 1.07 and a current ratio of 1.07. Paycom Software has a twelve month low of $173.65 and a twelve month high of $342.00.

Paycom Software (NYSE:PAYC) last issued its quarterly earnings results on Wednesday, February 5th. The software maker reported $0.86 EPS for the quarter, topping analysts’ consensus estimates of $0.77 by $0.09. The company had revenue of $193.40 million for the quarter, compared to analyst estimates of $190.34 million. Paycom Software had a net margin of 24.48% and a return on equity of 37.47%. Paycom Software’s revenue was up 28.7% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.61 earnings per share. Analysts predict that Paycom Software will post 3.24 EPS for the current fiscal year.

Paycom Software declared that its Board of Directors has authorized a share repurchase program on Thursday, March 12th that permits the company to buyback $250.00 million in shares. This buyback authorization permits the software maker to buy up to 1.9% of its shares through open market purchases. Shares buyback programs are typically a sign that the company’s leadership believes its shares are undervalued.

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Franklin Resources Inc. bought a new stake in Paycom Software in the fourth quarter valued at $26,940,000. Norges Bank bought a new stake in Paycom Software in the fourth quarter valued at $121,950,000. Total Clarity Wealth Management Inc. bought a new stake in Paycom Software in the fourth quarter valued at $247,000. Sunbelt Securities Inc. bought a new stake in Paycom Software in the fourth quarter valued at $16,614,000. Finally, Stephenson National Bank & Trust bought a new stake in Paycom Software in the fourth quarter valued at $25,000. 70.95% of the stock is owned by hedge funds and other institutional investors.

About Paycom Software

Paycom Software, Inc provides cloud-based human capital management (HCM) software service for small to mid-sized companies in the United States. It provides functionality and data analytics that businesses need to manage the employment life cycle from recruitment to retirement. The company's HCM solution offers a suite of applications in the areas of talent acquisition, including applicant tracking, candidate tracker, background checks, on-boarding, e-verify, and tax credit services; and time and labor management, such as time and attendance, scheduling/schedule exchange, time-off requests, labor allocation, labor management reports/push reporting, and geofencing/geotracking.

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Analyst Recommendations for Paycom Software (NYSE:PAYC)

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