Paycom Software (NYSE:PAYC) Shares Up 5.2% - Still a Buy?

Paycom Software, Inc. (NYSE:PAYC - Get Free Report) shot up 5.2% on Monday . The company traded as high as $219.45 and last traded at $218.72. 140,335 shares were traded during mid-day trading, a decline of 80% from the average session volume of 698,838 shares. The stock had previously closed at $207.99.

Analysts Set New Price Targets

A number of equities analysts have weighed in on PAYC shares. StockNews.com cut shares of Paycom Software from a "buy" rating to a "hold" rating in a research report on Tuesday, March 4th. Barclays decreased their price objective on Paycom Software from $229.00 to $221.00 and set an "equal weight" rating on the stock in a report on Thursday, January 23rd. JPMorgan Chase & Co. lifted their price target on shares of Paycom Software from $185.00 to $200.00 and gave the company a "neutral" rating in a research report on Thursday, February 13th. Piper Sandler boosted their price objective on Paycom Software from $191.00 to $224.00 and gave the company a "neutral" rating in a report on Friday, February 14th. Finally, Stifel Nicolaus dropped their price target on shares of Paycom Software from $215.00 to $187.00 and set a "hold" rating for the company in a research note on Thursday, February 13th. Twelve equities research analysts have rated the stock with a hold rating and one has given a buy rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $212.80.

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Paycom Software Price Performance

The stock's fifty day simple moving average is $210.19 and its two-hundred day simple moving average is $200.76. The company has a market capitalization of $12.53 billion, a price-to-earnings ratio of 24.58, a PEG ratio of 2.40 and a beta of 1.14.

Paycom Software (NYSE:PAYC - Get Free Report) last issued its quarterly earnings results on Wednesday, February 12th. The software maker reported $2.02 earnings per share for the quarter, topping analysts' consensus estimates of $1.99 by $0.03. Paycom Software had a net margin of 26.66% and a return on equity of 33.53%. On average, sell-side analysts predict that Paycom Software, Inc. will post 7.15 EPS for the current year.

Paycom Software Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, March 24th. Investors of record on Monday, March 10th will be issued a $0.375 dividend. The ex-dividend date is Monday, March 10th. This represents a $1.50 annualized dividend and a yield of 0.69%. Paycom Software's dividend payout ratio (DPR) is presently 16.85%.

Insider Transactions at Paycom Software

In other Paycom Software news, Director J C. Watts, Jr. sold 500 shares of the business's stock in a transaction dated Monday, February 24th. The shares were sold at an average price of $218.22, for a total value of $109,110.00. Following the transaction, the director now directly owns 7,730 shares in the company, valued at $1,686,840.60. The trade was a 6.08 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Bradley Scott Smith sold 3,000 shares of the stock in a transaction that occurred on Thursday, March 13th. The stock was sold at an average price of $201.01, for a total value of $603,030.00. Following the sale, the insider now owns 28,733 shares in the company, valued at approximately $5,775,620.33. This trade represents a 9.45 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 7,100 shares of company stock worth $1,476,024. Insiders own 14.50% of the company's stock.

Hedge Funds Weigh In On Paycom Software

Institutional investors have recently modified their holdings of the business. JPMorgan Chase & Co. lifted its stake in Paycom Software by 14.5% in the 3rd quarter. JPMorgan Chase & Co. now owns 326,018 shares of the software maker's stock valued at $54,305,000 after acquiring an additional 41,187 shares in the last quarter. Proficio Capital Partners LLC bought a new position in shares of Paycom Software during the 4th quarter worth approximately $7,142,000. FMR LLC lifted its stake in shares of Paycom Software by 55.0% during the 3rd quarter. FMR LLC now owns 1,007,919 shares of the software maker's stock worth $167,889,000 after buying an additional 357,723 shares during the last quarter. Nordea Investment Management AB grew its holdings in Paycom Software by 3.5% in the 4th quarter. Nordea Investment Management AB now owns 204,377 shares of the software maker's stock valued at $41,952,000 after buying an additional 6,916 shares in the last quarter. Finally, Friedenthal Financial bought a new position in shares of Paycom Software during the fourth quarter worth approximately $776,000. Institutional investors own 87.77% of the company's stock.

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.