Research analysts at BTIG Research have upgraded the stock rating for Paycom Software (NYSE: PAYC) to a “strong-buy” following a recent report released on November 5, 2023. This change comes amid a flurry of updates from various analysts who have reassessed the stock’s potential in the changing market landscape.
In a contrasting move, Mizuho adjusted its price target for Paycom Software from $220.00 to $180.00, maintaining a “neutral” rating. On the same day, UBS Group lowered its price objective from $285.00 to $245.00, also assigning a “buy” rating to the stock. JPMorgan Chase & Co. decreased its target price from $235.00 to $220.00, while maintaining a “neutral” stance.
Another significant update came from Zacks Research, which raised its assessment of Paycom Software from a “strong sell” to a “hold” rating. Additionally, KeyCorp revised its target price from $290.00 to $250.00, recommending an “overweight” rating for the company. Overall, the consensus rating for Paycom Software stands at “hold,” with analysts projecting an average price target of $223.57, according to data from MarketBeat.
Quarterly Earnings and Insider Activity
Paycom Software reported its latest quarterly earnings on November 5, 2023. The company announced earnings per share (EPS) of $1.94, falling short of analysts’ expectations of $1.96 by $0.02. The company’s revenue reached $493.30 million, slightly above the consensus estimate of $492.62 million. Notably, Paycom’s revenue increased by 9.2% compared to the same quarter last year, when it posted an EPS of $1.67. Analysts anticipate that Paycom will report an EPS of $7.15 for the current fiscal year.
In other corporate news, Robert D. Foster, Paycom’s Chief Financial Officer, sold 1,300 shares of the company on December 10, 2023. The shares were sold at an average price of $162.66, totaling $211,458.00. Following the sale, Foster retains 14,747 shares valued at approximately $2,398,747.02, representing an 8.10% reduction in his holdings. This transaction was disclosed in a filing with the Securities and Exchange Commission.
Institutional Investment Trends
Recent activity among institutional investors indicates shifting dynamics in Paycom’s ownership. Brooklyn Investment Group increased its stake by 19.4% during the first quarter, acquiring 240 shares valued at $52,000. UMB Bank n.a. raised its holdings by 7.6%, now owning 789 shares worth $164,000.
Other notable investors include Applied Finance Capital Management LLC, which boosted its holdings by 4.3%, and ORG Wealth Partners LLC, which increased its position by 4.4%. Overall, hedge funds and institutional investors hold approximately 87.77% of Paycom Software’s stock.
As the stock continues to attract attention from various analysts and institutional investors, Paycom Software’s performance in the coming months will be closely monitored by market participants.
