NEW YORK (TheStreet) -- Shares of Paycom Software (PAYC) were diving 18.17% to $42.55 on heavy trading volume early Wednesday afternoon after the company reported light revenue for the 2016 third quarter.
After yesterday's closing bell, the Oklahoma City-based human capital management software solution provider posted revenue of $77.3 million, below analysts' forecasts of $76.7 million, according to FactSet.
During the period, revenue rose 40% from last year. But in the 2015 third quarter, revenue surged 51% year-over-year.
Adjusted earnings of 15 cents per diluted share topped analysts' estimates of 12 cents per share.
For the fourth quarter, Paycom sees revenue between $85 million and $87 million, while analysts are looking for $86 million.
The company forecasts full-year revenue in the range of $326.5 million to $328.5 million. Wall Street is looking for revenue of $327.7 million for 2016.
Credit Suisse upped its price target to $56 from $51 and maintained its "outperform" rating on the stock today. The firm noted that the quarterly revenue outperformance was below the company's historical pace.
"We believe the tough comparisons (e.g., +51% recurring revenue growth and +113% ANRR growth last year) are masking the continued underlying strength of PAYC's core business," Credit Suisse wrote in an analyst note.
Jefferies maintained a "buy" rating on the stock and $58 price target earlier today.
"While this wasn't the magnitude of beat that investors may have come to expect, even despite a very tough comp, it still represents hyper growth. We continue to believe that PAYC's can sustain strong execution, profitability, and outperformance," the firm wrote in a note this morning.
But JPMorgan downgraded the stock to "neutral" from "overweight" today following the quarterly report.
More than 5.26 million of the company's shares changed hands so far today compared to its average 30-day volume of 587,080 shares.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on the stock.
The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth and compelling growth in net income.
But the team also finds that the stock itself is trading at a premium valuation.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: PAYC