Paycom Software Inc (NYSE: PAYC)’s stock price has increased by 2.91 compared to its previous closing price of 155.17. However, the company has seen a 0.25% increase in its stock price over the last five trading sessions. seekingalpha.com reported 2024-08-14 that I reiterate my buy rating for PAYC remains, as the new sales strategy is delivering positive results. The near-term question is whether PAYC can accelerate growth in 2H24. The capital return story has gotten better with the enhanced share repurchase program.
Is It Worth Investing in Paycom Software Inc (NYSE: PAYC) Right Now?
Paycom Software Inc (NYSE: PAYC) has a higher price-to-earnings ratio of 19.25x compared to its average ratio. PAYC has 36-month beta value of 1.18. Analysts have mixed views on the stock, with 2 analysts rating it as a “buy,” 9 as “overweight,” 5 as “hold,” and 0 as “sell.”
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The public float for PAYC is 50.30M, and currently, short sellers hold a 5.93% ratio of that float. The average trading volume of PAYC on August 16, 2024 was 877.52K shares.
PAYC’s Market Performance
PAYC stock saw a decrease of 0.25% in the past week, with a monthly decline of -0.62% and a quarterly a decrease of -10.01%. The volatility ratio for the week is 2.51%, and the volatility levels for the last 30 days are 4.07% for Paycom Software Inc (PAYC). The simple moving average for the last 20 days is -0.32% for PAYC stock, with a simple moving average of -10.60% for the last 200 days.
Analysts’ Opinion of PAYC
Jefferies, on the other hand, stated in their research note that they expect to see PAYC reach a price target of $195. The rating they have provided for PAYC stocks is “Hold” according to the report published on January 05th, 2024.
UBS gave a rating of “Buy” to PAYC, setting the target price at $235 in the report published on November 07th of the previous year.
PAYC Trading at 5.70% from the 50-Day Moving Average
After a stumble in the market that brought PAYC to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -46.59% of loss for the given period.
Volatility was left at 4.07%, however, over the last 30 days, the volatility rate increased by 2.51%, as shares surge +3.17% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +8.91% upper at present.
During the last 5 trading sessions, PAYC rose by +0.25%, which changed the moving average for the period of 200-days by -33.56% in comparison to the 20-day moving average, which settled at $160.45. In addition, Paycom Software Inc saw -22.75% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at PAYC starting from Richison Chad R., who sale 1,950 shares at the price of $155.49 back on Aug 14 ’24. After this action, Richison Chad R. now owns 2,974,958 shares of Paycom Software Inc, valued at $303,197 using the latest closing price.
Richison Chad R., the CEO, President and Chairman of Paycom Software Inc, sale 1,950 shares at $155.49 during a trade that took place back on Aug 14 ’24, which means that Richison Chad R. is holding 3,552,049 shares at $303,197 based on the most recent closing price.
Stock Fundamentals for PAYC
Current profitability levels for the company are sitting at:
- 0.33 for the present operating margin
- 0.79 for the gross margin
The net margin for Paycom Software Inc stands at 0.27. The total capital return value is set at 0.33. Equity return is now at value 33.33, with 11.43 for asset returns.
Based on Paycom Software Inc (PAYC), the company’s capital structure generated 0.01 points at debt to capital in total, while cash flow to debt ratio is standing at 49.97. The debt to equity ratio resting at 0.01. The interest coverage ratio of the stock is 1197.91.
Currently, EBITDA for the company is 588.27 million with net debt to EBITDA at -0.46. When we switch over and look at the enterprise to sales, we see a ratio of 4.96. The receivables turnover for the company is 88.76for trailing twelve months and the total asset turnover is 0.41. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.08.
Conclusion
To put it simply, Paycom Software Inc (PAYC) has had a bad performance in recent times. Analysts have a mixed opinion on the stock, with some rating it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
