Paycom Software Surpasses Analyst Target: What’s Next for Investors?
In recent trading, shares of Paycom Software Inc (Symbol: PAYC) have surged past the average analyst 12-month target price of $182.08, changing hands for $209.03/share. When a stock reaches the target set by analysts, they typically have two reactions: either they downgrade the stock based on its valuation or raise their target price to reflect improved outlooks. This decision often hinges on the company’s recent business developments that may have influenced the stock’s rise.
The average target for Paycom comes from 13 analysts within the Zacks coverage universe, but it’s important to remember that this average represents a blend of various opinions. Some analysts have more modest expectations, with one targeting a price of $150.00, while another sees potential as high as $250.00. The standard deviation among these targets is $26.74, indicating a range of perspectives on Paycom’s future performance.
Analyzing the average price target serves as a way to capture the collective insight of numerous analysts rather than relying on a single viewpoint. As shares of PAYC move beyond the average target price of $182.08/share, investors are prompted to evaluate the company’s prospects. They must ask themselves whether $182.08 is just a milestone on the journey to even higher targets or if the valuation has become inflated, signaling a potential opportunity to sell some shares. Below is a summary of the current analyst ratings for Paycom Software Inc:
| Recent PAYC Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Month Ago | 3 Month Ago |
| Strong buy ratings: | 2 | 2 | 2 | 2 |
| Buy ratings: | 0 | 0 | 0 | 0 |
| Hold ratings: | 17 | 17 | 17 | 17 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong sell ratings: | 0 | 0 | 0 | 0 |
| Average rating: | 2.79 | 2.79 | 2.79 | 2.79 |
The average rating, displayed in the last row of the table, ranges from 1 (Strong Buy) to 5 (Strong Sell). This article draws on data provided by Zacks Investment Research via Quandl.com. For those interested in the latest insights, the Zacks research report on PAYC is available for free.
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Additional Resources:
• Best Value Stocks
• Funds Holding WDTI
• Institutional Holders of AWYX
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
