Paycom Software Inc (NYSE:PAYC) Sees Significant Decrease in Short Interest

Paycom Software Inc (NYSE:PAYC) was the recipient of a large decrease in short interest in July. As of July 31st, there was short interest totalling 2,863,800 shares, a decrease of 8.1% from the June 30th total of 3,116,000 shares. Currently, 5.9% of the company’s shares are short sold. Based on an average trading volume of 718,700 shares, the short-interest ratio is currently 4.0 days.

Shares of NYSE PAYC traded up $2.84 during midday trading on Thursday, hitting $235.14. 341,471 shares of the company’s stock were exchanged, compared to its average volume of 669,146. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.07 and a quick ratio of 1.07. Paycom Software has a twelve month low of $107.46 and a twelve month high of $246.85. The company has a market cap of $13.70 billion, a PE ratio of 107.86, a P/E/G ratio of 3.23 and a beta of 1.59. The firm’s fifty day simple moving average is $235.90 and its 200-day simple moving average is $204.52.

Paycom Software (NYSE:PAYC) last issued its earnings results on Tuesday, July 30th. The software maker reported $0.75 earnings per share for the quarter, topping the consensus estimate of $0.61 by $0.14. Paycom Software had a return on equity of 38.25% and a net margin of 23.93%. The business had revenue of $169.30 million for the quarter, compared to analyst estimates of $163.88 million. During the same quarter last year, the company earned $0.59 EPS. The business’s quarterly revenue was up 31.4% on a year-over-year basis. Equities analysts anticipate that Paycom Software will post 2.74 EPS for the current fiscal year.

In other Paycom Software news, insider Bradley Scott Smith sold 2,600 shares of the stock in a transaction dated Monday, June 3rd. The stock was sold at an average price of $200.95, for a total value of $522,470.00. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, COO Jon Evans sold 2,100 shares of the stock in a transaction dated Tuesday, July 9th. The shares were sold at an average price of $240.47, for a total value of $504,987.00. The disclosure for this sale can be found here. 16.09% of the stock is currently owned by corporate insiders.

Hedge funds and other institutional investors have recently modified their holdings of the company. Geode Capital Management LLC grew its position in Paycom Software by 5.2% during the 4th quarter. Geode Capital Management LLC now owns 505,767 shares of the software maker’s stock valued at $61,930,000 after purchasing an additional 24,903 shares during the last quarter. Pennsylvania Trust Co purchased a new stake in shares of Paycom Software during the 1st quarter valued at about $855,000. Nwam LLC purchased a new stake in shares of Paycom Software during the 1st quarter valued at about $303,000. Harvest Investment Services LLC purchased a new stake in shares of Paycom Software during the 1st quarter valued at about $1,588,000. Finally, Oakbrook Investments LLC purchased a new stake in shares of Paycom Software during the 1st quarter valued at about $255,000. 75.17% of the stock is currently owned by institutional investors and hedge funds.

A number of equities research analysts have issued reports on the company. KeyCorp increased their price target on Paycom Software from $246.00 to $275.00 and gave the company an “overweight” rating in a research report on Wednesday, July 31st. Stifel Nicolaus increased their price target on Paycom Software from $150.00 to $179.00 and gave the company a “hold” rating in a research report on Wednesday, May 1st. Zacks Investment Research lowered Paycom Software from a “buy” rating to a “hold” rating in a research report on Monday, May 6th. Credit Suisse Group increased their price target on Paycom Software from $190.00 to $235.00 and gave the company a “neutral” rating in a research report on Wednesday, July 31st. They noted that the move was a valuation call. Finally, Canaccord Genuity increased their price target on Paycom Software from $160.00 to $195.00 and gave the company a “hold” rating in a research report on Thursday, May 2nd. Ten investment analysts have rated the stock with a hold rating and six have issued a buy rating to the stock. The company presently has a consensus rating of “Hold” and a consensus price target of $216.29.

About Paycom Software

Paycom Software, Inc provides cloud-based human capital management (HCM) software service for small to mid-sized companies in the United States. It provides functionality and data analytics that businesses need to manage the employment life cycle from recruitment to retirement. The company's HCM solution offers a suite of applications in the areas of talent acquisition, including applicant tracking, candidate tracker, background checks, on-boarding, e-verify, and tax credit services; and time and labor management, such as time and attendance, scheduling/schedule exchange, time-off requests, labor allocation, labor management reports/push reporting, and geofencing/geotracking.

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