Adams Diversified Equity Fund Inc. Acquires New Shares in Paycom Software, Inc. $PAYC

Key Points

• Adams Diversified Equity Fund Inc. has acquired 41,500 shares of Paycom Software, valued at approximately $9.6 million, increasing its ownership to 0.07% by the end of the last quarter.
• Institutional investors own 87.77% of Paycom Software's stock, indicating strong market confidence, while analysts have varied outlooks with a consensus rating of "Hold" and an average target price of $243.69.
• Paycom Software recently reported earnings with a net margin of 21.22% and a year-over-year revenue increase of 10.5%, exceeding consensus estimates.

Adams Diversified Equity Fund Inc. acquired a new stake in Paycom Software, Inc. (NYSE:PAYC - Free Report) during the 2nd quarter, according to its most recent disclosure with the SEC. The institutional investor acquired 41,500 shares of the software maker's stock, valued at approximately $9,603,000. Adams Diversified Equity Fund Inc. owned approximately 0.07% of Paycom Software at the end of the most recent quarter.

Other hedge funds and other institutional investors have also added to or reduced their stakes in the company. von Borstel & Associates Inc. bought a new position in shares of Paycom Software during the 1st quarter valued at $27,000. SouthState Corp bought a new position in shares of Paycom Software during the 1st quarter valued at $27,000. Golden State Wealth Management LLC lifted its holdings in shares of Paycom Software by 112.3% during the 1st quarter. Golden State Wealth Management LLC now owns 138 shares of the software maker's stock valued at $30,000 after buying an additional 73 shares during the period. S Bank Fund Management Ltd bought a new position in shares of Paycom Software during the 1st quarter valued at $37,000. Finally, Brooklyn Investment Group lifted its holdings in shares of Paycom Software by 19.4% during the 1st quarter. Brooklyn Investment Group now owns 240 shares of the software maker's stock valued at $52,000 after buying an additional 39 shares during the period. 87.77% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on PAYC shares. UBS Group lowered their price target on Paycom Software from $310.00 to $285.00 and set a "buy" rating on the stock in a report on Wednesday, September 17th. TD Cowen raised Paycom Software from a "hold" rating to a "buy" rating and increased their price target for the company from $246.00 to $258.00 in a report on Monday, September 22nd. Jefferies Financial Group lowered their price target on Paycom Software from $250.00 to $225.00 and set a "hold" rating on the stock in a report on Monday, October 13th. BMO Capital Markets upped their price objective on Paycom Software from $244.00 to $258.00 and gave the stock a "market perform" rating in a research note on Thursday, August 7th. Finally, Weiss Ratings restated a "hold (c)" rating on shares of Paycom Software in a research note on Wednesday, October 8th. Four analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $243.69.

Paycom Software Stock Up 3.0%

PAYC opened at $207.15 on Wednesday. The firm has a 50-day simple moving average of $215.73 and a two-hundred day simple moving average of $228.28. Paycom Software, Inc. has a 52 week low of $162.62 and a 52 week high of $267.76. The company has a market capitalization of $11.99 billion, a PE ratio of 28.03, a price-to-earnings-growth ratio of 2.20 and a beta of 0.82.

Paycom Software (NYSE:PAYC - Get Free Report) last released its quarterly earnings data on Wednesday, August 6th. The software maker reported $2.06 EPS for the quarter, beating the consensus estimate of $1.78 by $0.28. Paycom Software had a net margin of 21.22% and a return on equity of 25.40%. The business had revenue of $483.60 million during the quarter, compared to the consensus estimate of $472.00 million. During the same quarter in the prior year, the firm earned $1.62 EPS. The business's revenue was up 10.5% on a year-over-year basis. As a group, sell-side analysts expect that Paycom Software, Inc. will post 7.15 earnings per share for the current year.

Paycom Software Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, September 8th. Stockholders of record on Monday, August 25th were paid a $0.375 dividend. This represents a $1.50 annualized dividend and a dividend yield of 0.7%. The ex-dividend date of this dividend was Monday, August 25th. Paycom Software's dividend payout ratio (DPR) is presently 20.30%.

Insider Activity at Paycom Software

In other news, insider Bradley Scott Smith sold 1,500 shares of the business's stock in a transaction that occurred on Friday, September 12th. The stock was sold at an average price of $223.27, for a total transaction of $334,905.00. Following the transaction, the insider owned 24,533 shares of the company's stock, valued at approximately $5,477,482.91. The trade was a 5.76% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Company insiders own 10.90% of the company's stock.

Paycom Software Profile

Paycom Software, Inc provides cloud-based human capital management (HCM) solution delivered as software-as-a-service for small to mid-sized companies in the United States. It offers functionality and data analytics that businesses need to manage the employment life cycle from recruitment to retirement.

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