Paycom Software (NYSE:PAYC) Sets New 1-Year Low – Should You Sell?

Paycom Software, Inc. (NYSE:PAYC) shares reached a new 52-week low on Tuesday . The stock traded as low as $129.62 and last traded at $130.5020, with a volume of 60692 shares traded. The stock had previously closed at $133.31.

Analyst Ratings Changes

Several research firms have issued reports on PAYC. Jefferies Financial Group cut their price target on Paycom Software from $225.00 to $190.00 and set a “hold” rating for the company in a report on Thursday, November 6th. Citigroup dropped their price target on shares of Paycom Software from $191.00 to $185.00 and set a “neutral” rating for the company in a research report on Tuesday, December 23rd. KeyCorp cut their price target on Paycom Software from $290.00 to $250.00 and set an “overweight” rating for the company in a research note on Thursday, November 6th. BTIG Research assumed coverage on Paycom Software in a research note on Wednesday, December 17th. They issued a “buy” rating and a $195.00 price objective for the company. Finally, Weiss Ratings restated a “hold (c-)” rating on shares of Paycom Software in a research note on Monday, December 29th. One research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of “Hold” and an average price target of $202.86.

Paycom Software Trading Down 5.1%

The firm has a 50 day moving average price of $156.87 and a 200-day moving average price of $190.26. The firm has a market capitalization of $7.12 billion, a P/E ratio of 15.74, a price-to-earnings-growth ratio of 1.42 and a beta of 0.79.

Paycom Software (NYSE:PAYC) last posted its quarterly earnings data on Wednesday, November 5th. The software maker reported $1.94 EPS for the quarter, missing the consensus estimate of $1.96 by ($0.02). Paycom Software had a return on equity of 24.79% and a net margin of 22.65%.The firm had revenue of $493.30 million for the quarter, compared to analysts’ expectations of $492.62 million. During the same period in the previous year, the firm earned $1.67 earnings per share. The firm’s quarterly revenue was up 9.2% compared to the same quarter last year. Research analysts anticipate that Paycom Software, Inc. will post 7.15 earnings per share for the current year.

Insider Buying and Selling

In other Paycom Software news, CFO Robert D. Foster sold 1,300 shares of the firm’s stock in a transaction that occurred on Wednesday, December 10th. The shares were sold at an average price of $162.66, for a total value of $211,458.00. Following the completion of the sale, the chief financial officer directly owned 14,747 shares in the company, valued at $2,398,747.02. This trade represents a 8.10% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 10.90% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of PAYC. Ethic Inc. purchased a new stake in shares of Paycom Software in the second quarter valued at about $566,000. Aviva PLC grew its holdings in shares of Paycom Software by 65.2% during the 2nd quarter. Aviva PLC now owns 34,129 shares of the software maker’s stock worth $7,897,000 after purchasing an additional 13,473 shares during the period. United Asset Strategies Inc. acquired a new stake in shares of Paycom Software during the 2nd quarter worth about $877,000. Dillon & Associates Inc. increased its position in shares of Paycom Software by 10.9% during the 3rd quarter. Dillon & Associates Inc. now owns 68,153 shares of the software maker’s stock worth $14,176,000 after purchasing an additional 6,696 shares during the last quarter. Finally, Hussman Strategic Advisors Inc. purchased a new stake in Paycom Software in the 2nd quarter valued at about $2,916,000. 87.77% of the stock is owned by institutional investors and hedge funds.

Paycom Software Company Profile

Paycom Software, Inc (NYSE: PAYC) is a cloud-based human capital management (HCM) software provider that delivers an end-to-end solution for human resources, payroll, talent acquisition, time and labor management, and talent management. Its single-database platform enables organizations to process payroll, track time, administer benefits, and manage recruiting and employee development through a unified system. Paycom’s software is designed to streamline administrative tasks, improve data accuracy, and provide real-time reporting and analytics to support strategic HR decisions.

The company’s core offerings include payroll processing with built-in tax compliance, employee self-service functionality, automated time tracking, and customizable talent acquisition tools that allow employers to create and post job requisitions, screen candidates, and conduct onboarding electronically.