5,032,303 Shares in Paycom Software, Inc. $PAYC Bought by BlackRock Inc.

Key Points

• BlackRock acquired 5.03 million Paycom shares worth approximately $632.5 million, giving it a 10.57% stake. Institutional investors and hedge funds collectively own 87.77% of PAYC.
• Analysts raised their price targets following Paycom’s earnings beat, with targets ranging from $194 to $270. However, the consensus rating remains “Hold”, with an average price target of $204.69.
• Paycom reported quarterly EPS of $2.78 and revenue of $531.2 million, exceeding estimates, while revenue increased 9.8% year over year. The company also declared a quarterly dividend of $0.375 per share, representing a 0.7% yield.

BlackRock Inc. purchased a new stake in shares of Paycom Software, Inc. (NYSE:PAYC - Free Report) during the 2nd quarter, according to the company in its most recent filing with the SEC. The fund purchased 5,032,303 shares of the software maker's stock, valued at approximately $632,460,000. BlackRock Inc. owned about 10.57% of Paycom Software as of its most recent filing with the SEC.

Other hedge funds have also modified their holdings of the company. Reinhart Partners LLC. increased its holdings in Paycom Software by 887.4% in the 4th quarter. Reinhart Partners LLC. now owns 598,323 shares of the software maker's stock worth $95,351,000 after buying an additional 537,726 shares during the period. Contour Asset Management LLC acquired a new stake in Paycom Software during the 4th quarter valued at approximately $60,333,000. Two Sigma Investments LP boosted its holdings in shares of Paycom Software by 228.7% in the 3rd quarter. Two Sigma Investments LP now owns 532,124 shares of the software maker's stock valued at $110,756,000 after acquiring an additional 370,219 shares during the last quarter. Invesco Ltd. increased its stake in shares of Paycom Software by 28.2% in the fourth quarter. Invesco Ltd. now owns 1,559,682 shares of the software maker's stock worth $248,551,000 after acquiring an additional 343,494 shares during the period. Finally, Bank of New York Mellon Corp acquired a new stake in shares of Paycom Software in the second quarter worth $42,858,000. 87.77% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of research analysts recently issued reports on PAYC shares. Citigroup boosted their target price on shares of Paycom Software from $136.00 to $194.00 and gave the company a "neutral" rating in a research report on Friday, August 7th. BMO Capital Markets lifted their price objective on Paycom Software from $145.00 to $208.00 and gave the company a "market perform" rating in a research note on Thursday, August 6th. Weiss Ratings raised Paycom Software from a "hold (c-)" rating to a "hold (c)" rating in a report on Tuesday, August 11th. UBS Group upped their target price on Paycom Software from $195.00 to $205.00 and gave the stock a "buy" rating in a research note on Thursday, August 6th. Finally, KeyCorp raised their target price on Paycom Software from $195.00 to $270.00 and gave the stock an "overweight" rating in a report on Thursday, August 6th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and nine have assigned a Hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $204.69.

Paycom Software Trading Up 0.1%

PAYC stock opened at $229.37 on Monday. The company's 50-day simple moving average is $160.58 and its 200-day simple moving average is $139.89. The company has a quick ratio of 1.07, a current ratio of 1.07 and a debt-to-equity ratio of 1.57. Paycom Software, Inc. has a 52-week low of $104.90 and a 52-week high of $234.60. The firm has a market cap of $10.34 billion, a P/E ratio of 24.38, a PEG ratio of 1.29 and a beta of 0.75.

Paycom Software (NYSE:PAYC - Get Free Report) last posted its earnings results on Wednesday, August 5th. The software maker reported $2.78 EPS for the quarter, beating analysts' consensus estimates of $2.38 by $0.40. The firm had revenue of $531.20 million for the quarter, compared to analysts' expectations of $513.12 million. Paycom Software had a return on equity of 37.06% and a net margin of 22.78%.The company's quarterly revenue was up 9.8% on a year-over-year basis. During the same period last year, the firm earned $2.06 EPS. As a group, equities analysts forecast that Paycom Software, Inc. will post 10.48 EPS for the current fiscal year.

Paycom Software Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 8th. Stockholders of record on Monday, August 24th will be given a $0.375 dividend. The ex-dividend date is Monday, August 24th. This represents a $1.50 dividend on an annualized basis and a dividend yield of 0.7%. Paycom Software's payout ratio is 15.94%.

Paycom Software Profile

Paycom Software, Inc NYSE: PAYC is a cloud-based human capital management (HCM) software provider that delivers an end-to-end solution for human resources, payroll, talent acquisition, time and labor management, and talent management. Its single-database platform enables organizations to process payroll, track time, administer benefits, and manage recruiting and employee development through a unified system. Paycom's software is designed to streamline administrative tasks, improve data accuracy, and provide real-time reporting and analytics to support strategic HR decisions.

The company's core offerings include payroll processing with built-in tax compliance, employee self-service functionality, automated time tracking, and customizable talent acquisition tools that allow employers to create and post job requisitions, screen candidates, and conduct onboarding electronically.

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