83,100 Shares in Paycom Software, Inc. $PAYC Acquired by Canada Pension Plan Investment Board

Key Points

• Canada Pension Plan Investment Board acquired 83,100 Paycom shares worth approximately $10.4 million, while institutional investors and hedge funds collectively own 87.77% of the stock.
• Paycom reported strong quarterly results, with adjusted earnings of $2.78 per share and revenue of $531.2 million, exceeding analyst expectations; revenue increased 9.8% year over year.
• Analyst sentiment remains mixed: Paycom has a consensus “Hold” rating and a $208.08 price target, despite several firms raising targets. The company also announced a quarterly dividend of $0.375 per share, equivalent to a 0.6% annual yield.

Canada Pension Plan Investment Board purchased a new position in shares of Paycom Software, Inc. (NYSE:PAYC - Free Report) in the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund purchased 83,100 shares of the software maker's stock, valued at approximately $10,444,000. Canada Pension Plan Investment Board owned approximately 0.18% of Paycom Software as of its most recent SEC filing.

Other hedge funds and other institutional investors have also modified their holdings of the company. CYBER HORNET ETFs LLC purchased a new stake in shares of Paycom Software during the 2nd quarter worth $29,000. MUFG Securities EMEA plc acquired a new position in Paycom Software in the second quarter valued at approximately $33,000. Brown Brothers Harriman & Co. increased its stake in Paycom Software by 190.6% in the fourth quarter. Brown Brothers Harriman & Co. now owns 154 shares of the software maker's stock valued at $25,000 after purchasing an additional 101 shares during the last quarter. Palisade Asset Management LLC purchased a new position in shares of Paycom Software in the 3rd quarter valued at $33,000. Finally, Clearstead Advisors LLC grew its holdings in shares of Paycom Software by 140.3% during the fourth quarter. Clearstead Advisors LLC now owns 161 shares of the software maker's stock worth $26,000 after purchasing an additional 94 shares during the last quarter. 87.77% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of brokerages have recently commented on PAYC. Mizuho lifted their target price on shares of Paycom Software from $120.00 to $130.00 and gave the company a "neutral" rating in a report on Thursday, May 7th. BTIG Research increased their target price on shares of Paycom Software from $160.00 to $230.00 and gave the stock a "buy" rating in a research note on Thursday, August 6th. Citigroup raised their price target on Paycom Software from $136.00 to $194.00 and gave the stock a "neutral" rating in a report on Friday, August 7th. Wall Street Zen upgraded Paycom Software from a "hold" rating to a "buy" rating in a research report on Saturday. Finally, TD Cowen upped their price objective on Paycom Software from $149.00 to $244.00 and gave the company a "buy" rating in a research note on Thursday, August 6th. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and nine have assigned a Hold rating to the stock. Based on data from MarketBeat, Paycom Software presently has a consensus rating of "Hold" and a consensus price target of $208.08.

Paycom Software Trading Up 0.8%

NYSE:PAYC opened at $239.00 on Friday. The stock has a fifty day moving average price of $171.24 and a two-hundred day moving average price of $143.49. The stock has a market capitalization of $10.77 billion, a price-to-earnings ratio of 25.40, a PEG ratio of 1.32 and a beta of 0.76. The company has a debt-to-equity ratio of 1.57, a quick ratio of 1.07 and a current ratio of 1.07. Paycom Software, Inc. has a 1 year low of $104.90 and a 1 year high of $242.50.

Paycom Software (NYSE:PAYC - Get Free Report) last issued its earnings results on Wednesday, August 5th. The software maker reported $2.78 EPS for the quarter, topping the consensus estimate of $2.38 by $0.40. Paycom Software had a net margin of 22.78% and a return on equity of 37.06%. The company had revenue of $531.20 million for the quarter, compared to analyst estimates of $513.12 million. During the same period in the previous year, the firm earned $2.06 EPS. The business's revenue was up 9.8% on a year-over-year basis. As a group, sell-side analysts anticipate that Paycom Software, Inc. will post 10.65 earnings per share for the current fiscal year.

Paycom Software Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 8th. Investors of record on Monday, August 24th will be issued a dividend of $0.375 per share. The ex-dividend date of this dividend is Monday, August 24th. This represents a $1.50 dividend on an annualized basis and a yield of 0.6%. Paycom Software's payout ratio is currently 15.94%.

About Paycom Software

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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