Paycom Software (PAYC) - Investment Analysts’ Weekly Ratings Updates

A number of firms have modified their ratings and price targets on shares of Paycom Software (NYSE: PAYC) recently:

• 8/8/2017 – Paycom Software had its “sector perform” rating reaffirmed by analysts at Royal Bank Of Canada. They now have a $74.00 price target on the stock, up previously from $67.00.
• 8/4/2017 – Paycom Software was upgraded by analysts at Zacks Investment Research from a “hold” rating to a “buy” rating. They now have a $78.00 price target on the stock. According to Zacks, “Provider of cloud-based HCM software as a service solution, Paycom has outperformed the broader industry over the last one year. Revenue growth seems to be steady and was positively impacted by higher recurring revenues and higher traction in cloud-based offerings. Better-than-expected demand for advanced human capital management and payroll software solutions during the reported quarter were the other positives. We believe that the higher adoption of Paycom Software’s Affordable Care Act (“ACA”) dashboard application that tracks employee count, employee status and health care plan affordability will act as a tailwind in the long run. Going ahead, Paycom might witness long-term growth by successfully cross-selling newer products to the existing client base, which will boost revenues. Nevertheless, competition from peers remains a headwind.”
• 8/2/2017 – Paycom Software had its “sector perform” rating reaffirmed by analysts at Royal Bank Of Canada. They now have a $74.00 price target on the stock, up previously from $67.00.
• 8/2/2017 – Paycom Software had its price target raised by analysts at Stifel Nicolaus from $67.00 to $80.00. They now have a “buy” rating on the stock.
• 8/2/2017 – Paycom Software had its price target raised by analysts at Oppenheimer Holdings, Inc. from $65.00 to $75.00. They now have an “outperform” rating on the stock.
• 8/2/2017 – Paycom Software had its price target raised by analysts at Canaccord Genuity from $80.00 to $85.00. They now have a “buy” rating on the stock.
• 8/2/2017 – Paycom Software had its price target raised by analysts at Credit Suisse Group from $70.00 to $78.00. They now have an “outperform” rating on the stock.
• 8/2/2017 – Paycom Software had its “buy” rating reaffirmed by analysts at Jefferies Group LLC. They now have a $83.00 price target on the stock, up previously from $73.00.
• 8/2/2017 – Paycom Software had its price target raised by analysts at KeyCorp to $94.00.
• 8/1/2017 – Paycom Software had its “hold” rating reaffirmed by analysts at Mizuho. They now have a $70.00 price target on the stock. They wrote, “We believe management continues to execute against the opportunity in the mid-market and await further commentary on the call. 3Q17 revenue outlook largely in-line with consensus; upper end of profitability outlook inline with consensus. For the third quarter, management expects revenue of $99-101mm (up 28-31% Y/Y) vs. consensus of $99.5mm. Adj. EBITDA guidance came in at $21-23mm (or margin of 21-23%; down 50-250bps Y/Y), which compares with consensus of $23mm. Again, we point out that the year-over-year decline in margins is the result of tough compares vs. FY16 as a result of timing of ACA-related pull-ins of new business. Margin guidance compares with consensus estimates of 22.7%. We are reviewing our estimates. The conference call is scheduled for 5PM ET. Dial-in number for the call is (866) 270-1533.””
• 7/19/2017 – Paycom Software had its “buy” rating reaffirmed by analysts at Barclays PLC. They now have a $74.00 price target on the stock.
• 7/10/2017 – Paycom Software was downgraded by analysts at Mizuho from a “buy” rating to a “neutral” rating. They now have a $70.00 price target on the stock.
• 7/3/2017 – Paycom Software had its “buy” rating reaffirmed by analysts at Credit Suisse Group.
• 6/29/2017 – Paycom Software was downgraded by analysts at BidaskClub from a “strong-buy” rating to a “buy” rating.
• 6/27/2017 – Paycom Software had its price target raised by analysts at Canaccord Genuity from $70.00 to $80.00. They now have a “buy” rating on the stock.

Shares of Paycom Software, Inc. (PAYC) opened at 71.41 on Thursday. The stock’s 50 day moving average is $69.27 and its 200 day moving average is $61.97. Paycom Software, Inc. has a 12 month low of $39.15 and a 12 month high of $73.61. The stock has a market cap of $4.14 billion, a P/E ratio of 77.45 and a beta of 1.75.

Paycom Software (NYSE:PAYC) last released its quarterly earnings data on Tuesday, August 1st. The software maker reported $0.24 EPS for the quarter, topping analysts’ consensus estimates of $0.13 by $0.11. The firm had revenue of $98.20 million during the quarter, compared to the consensus estimate of $95.98 million. Paycom Software had a net margin of 14.28% and a return on equity of 35.77%. The firm’s revenue was up 32.9% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.21 earnings per share. Analysts predict that Paycom Software, Inc. will post $1.15 earnings per share for the current fiscal year.

In other Paycom Software news, insider Jeffrey D. York sold 40,000 shares of Paycom Software stock in a transaction on Monday, July 3rd. The shares were sold at an average price of $66.93, for a total value of $2,677,200.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Stacey M. Pezold sold 30,000 shares of Paycom Software stock in a transaction on Monday, June 19th. The stock was sold at an average price of $70.15, for a total transaction of $2,104,500.00. The disclosure for this sale can be found here. Insiders own 17.90% of the company’s stock.

Paycom Software, Inc is a provider of a cloud-based human capital management (HCM) software solution delivered as Software-as-a-Service (SaaS). The Company provides functionality and data analytics that businesses need to manage the complete employment life cycle from recruitment to retirement. The Company’s applications streamline client processes and provide clients and their employees with the ability to directly access and manage administrative processes, including applications that identify candidates, on-board employees, manage time and labor, administer payroll deductions and benefits, manage performance, terminate employees and administer post-termination health benefits, such as COBRA.