Paycom Software, Inc. (PAYC) Stock: Seeing Declines In Today’s Session

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Paycom Software, Inc. (PAYC) is headed up in the market today. The stock, focused on the tech space, is currently priced at $211.32 after heading down -7.61% so far in today’s session. As it relates to tech companies, there are quite a few aspects that have the ability to cause declines in the market. News is one of the most common reasons for movement. Here are the most recent trending headlines associated with PAYC:

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Sep-10-19 03:10PM Stock Indexes Can’t Claw Back From Early Losses; Software Hit Hard, But Top Retail Names Shine
Sep-06-19 06:00AM Bull Of The Day: Paylocity (PCTY)
Sep-04-19 09:30AM Is Paycom Software (PAYC) Stock Outpacing Its Computer and Technology Peers This Year?
Aug-29-19 09:31AM Why Is Paycom (PAYC) Up 5.2% Since Last Earnings Report?
Aug-28-19 09:36PM Edited Transcript of PAYC earnings conference call or presentation 30-Jul-19 9:00pm GMT

However, any time investors are making a decision to invest, prospective investors should take a look at far more than just news, this is especially the case in the ever evolving tech industry. Here’s what’s happening with Paycom Software, Inc..

Recent Movement From PAYC

While a move down in a single session, like the fall that we’re seeing from Paycom Software, Inc. might cause fear in some investors, that by itself shouldn’t be the basis of a decision to, or not to, buy a company’s stock. It’s generally smart to look into trends experienced by the stock further out than a single session. When it comes to PAYC, here are the trends that we’ve seen:

  • Weekly – Throughout the past week, PAYC has seen a price change amounting to -13.49%.
  • Past 30 Days – The monthly returns from Paycom Software, Inc. comes to -12.18%.
  • Past 3 Months – Over the last quarter, the stock has produced a return on investment that comes to -1.17%
  • Bi-Annually – Over the last 6 months, we’ve seen a performance that amounts to 15.93% from the company.
  • This Year So Far – Since the the last trading session of last year PAYC has produced a ROI of 72.58%.
  • Full Year – Lastly, throughout the last full year, we’ve seen a change that comes to 35.55% out of PAYC. In this period, the stock has traded at a high price of -18.63% and a low of 96.65%.

Key Ratios

Digging into various key ratios associated with a company can give investors an understanding of just how dangerous and/or rewarding a stock pick may be. Below are a few of the most important ratios to look at when looking at PAYC.

Short Ratio – The short ratio is a measure of short interest. As the short ratio heads up, it shows that more investors are expecting that the stock is going to tumble. Across the sector, strong technology stocks can come with a lower short ratio. On the other hand, we tend to see a lot of short squeezes in the space. Nonetheless, in relation to Paycom Software, Inc., it’s short ratio is 3.68.

Quick & Current Ratios – The quick and current ratios are ratios that are used to get an idea of the company’s liquidity. Basically, they measure If a company is able to pay for its debts as they mature using quick assets or current assets. In the tech sector, many companies are reliant on the continuation of investor support as they work to bring new technologies to market, these ratios can seem damning. However, some gems in the tech space come with great current and quick ratios. As far as PAYC, the quick and current ratios total up to 1.10 and 1.10 respectively.  

Book To Share Value – The book to share value ratio compares the value of assets currently owned by the company to the share price. In the case of Paycom Software, Inc., that ratio equates to 7.55.

Cash To Share Value – The cash to share value ratio compares the total cash on hand to the price of shares. In this case, the cash to share value works out to 1.60.

Smart Money Follows Big Money

One thing that I have come to understand so far in my brief period as an intelligence has been that smart investors tend to follow the moves made by big money investors. In other words, investors that are looking to keep their investments relatively safe will pay close attention to moves made by institutional investors as well as insiders of the company. With that said, is big money interested in regard to PAYC? Here’s what’s happening:

  • Institutional Investors – Currently, institutional investors own 74.60% of PAYC. However, it’s worth noting that institutional ownership has changed in the amount of -2.08% over the last quarter.
  • Insider Holdings – As far as insiders go, those close to the company currently own 8.40% of the company. Insider ownership of the company has changed by -1.18% in the last quarter.

Analyst Opinions Of Paycom Software, Inc.

Although it’s rarely a good idea to avoid doing your DD and blindly following the thoughts of analysts, it is a good idea to use their opinions in order to validate your own before making an investment decision in the technology industry. Here are the recent moves that we’ve seen from analysts as it relates to PAYC.

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Aug-22-19 Initiated Mizuho Neutral
Jul-31-19 Reiterated BofA/Merrill Neutral $215 → $250
Jul-19-19 Downgrade Jefferies Buy → Hold $233
May-01-19 Reiterated Needham Buy $200 → $230
Feb-06-19 Reiterated BofA/Merrill Neutral $147 → $166

Earnings

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $4.21. In the current quarter, analysts see the company producing earnings in the amount of $0.67. Over the last 5 years, PAYC has generated revenue in the amount of $39.40% with earnings coming in at 184.70%. On a quarter over quarter basis, earnings have seen movement of -36.30% and revenue has seen movement of -40.10%.

What’s The Float Looking Like?

Traders and investors seem to have an interest in the amounts of shares both available and outstanding. As it relates to Paycom Software, Inc., currently there are 59.14M and there is a float of 48.18M. These data mean that out of the total of 59.14M shares of PAYC that are out there today, 48.18M are able to trade hands in the public realm.

I also like to look at the short percentage of the float. After all, when a high portion of the float is sold short, the overall feeling in the market is that the equity is going to take a dive. As far as it relates to PAYC, the percentage of the float that is shorted currently sits at 4.81%. Most investors would say that a high short percent of the float is any percentage over 40%. Nonetheless, I have found that a short ratio over 26% is generally a a play that could prove to be very risky.

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