Paycom Software (NYSE: PAYC) has seen its price target revised downwards by Jefferies Financial Group, dropping from $250.00 to $225.00, according to a report published on Monday. The financial services firm has issued a “hold” rating on the stock, which indicates a cautious outlook on the company’s performance in the near term.
Several other analysts have also recently assessed Paycom Software’s market standing. Guggenheim initiated coverage on the company, assigning a “buy” rating with a target price of $270.00 in a research note dated September 26. Additionally, Weiss Ratings reaffirmed a “hold (c)” rating on the stock, while JPMorgan Chase & Co. raised its target price from $215.00 to $235.00, maintaining a “neutral” rating. Cantor Fitzgerald upgraded Paycom Software to a “hold” rating, and BMO Capital Markets set a new target price of $258.00, up from $244.00, in separate reports.
Currently, four investment analysts have rated Paycom Software with a “buy” rating, while eleven others have issued a “hold” rating. According to MarketBeat.com, the stock has an average rating of “hold” and a consensus price target of $245.62.
Current Performance and Earnings Reports
As of Monday, Paycom Software opened at $201.49. The company boasts a market capitalization of approximately $11.66 billion, a price-to-earnings (P/E) ratio of 27.27, and a price-to-earnings-growth (PEG) ratio of 2.19. The stock has a beta of 0.82, indicating lower volatility compared to the broader market.
Over the past 52 weeks, Paycom Software has experienced a low of $161.24 and a high of $267.76. The company’s most recent quarterly earnings results, released on August 6, 2023, revealed earnings per share (EPS) of $2.06, surpassing the consensus estimate of $1.78 by $0.28. Revenue for the quarter was reported at $483.60 million, exceeding the forecast of $472.00 million. Year-over-year, Paycom Software’s revenue rose by 10.5%, with the previous year’s EPS recorded at $1.62.
Dividends and Insider Activity
In a recent financial disclosure, Paycom Software announced a quarterly dividend of $0.375, paid on September 8, 2023, to shareholders of record as of August 25. This dividend represents an annualized amount of $1.50, yielding approximately 0.7%. The company’s dividend payout ratio (DPR) stands at 20.30%.
In related news, insider Bradley Scott Smith sold 1,500 shares of Paycom Software on September 12 at an average price of $223.27, resulting in a transaction value of $334,905. Following this sale, Smith retains 24,533 shares in the company, valued at around $5.48 million. Notably, corporate insiders hold approximately 10.90% of the company’s stock.
Institutional Investment Trends
Recent adjustments by institutional investors also reflect shifting sentiments regarding Paycom Software. For instance, Brooklyn Investment Group increased its holdings by 19.4% in the first quarter, now owning 240 shares valued at $52,000. Commerce Bank raised its stake by 2.2%, acquiring 2,351 shares worth $514,000. Allworth Financial LP and US Bancorp DE also made incremental increases to their holdings.
Overall, institutional investors collectively own about 87.77% of Paycom Software’s shares, indicating strong confidence in the company’s long-term prospects.
As analysts continue to evaluate Paycom Software’s performance and market position, the adjustments in price targets and ratings reflect the dynamic nature of the software sector and investor sentiment.
