Baird Financial Group Inc. Has $5.11 Million Stock Position in Paycom Software, Inc. $PAYC

Key Points

• Baird Financial Group reduced its Paycom Software position by 26.1% in the second quarter, selling 14,373 shares and retaining 40,633 shares worth approximately $5.11 million. Institutional investors and hedge funds collectively own 87.77% of PAYC.
• Analysts have raised their price targets substantially, but the overall consensus remains “Hold”, with an average target of $214.23. Ratings include one Strong Buy, five Buys and nine Holds.
• Paycom reported stronger-than-expected quarterly results, with EPS of $2.78 versus the $2.38 estimate and revenue of $531.2 million, up 9.8% year over year. The company also pays a quarterly dividend of $0.375, yielding about 0.7% annually.

Baird Financial Group Inc. reduced its position in shares of Paycom Software, Inc. (NYSE:PAYC - Free Report) by 26.1% in the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 40,633 shares of the software maker's stock after selling 14,373 shares during the period. Baird Financial Group Inc. owned about 0.09% of Paycom Software worth $5,107,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Clearstead Advisors LLC increased its holdings in Paycom Software by 140.3% during the 4th quarter. Clearstead Advisors LLC now owns 161 shares of the software maker's stock valued at $26,000 after purchasing an additional 94 shares in the last quarter. Caitlin John LLC acquired a new position in Paycom Software in the second quarter worth $31,000. Mitsubishi UFJ Asset Management Co. Ltd. bought a new stake in shares of Paycom Software during the second quarter worth $33,000. EFG International AG bought a new stake in shares of Paycom Software during the second quarter worth $36,000. Finally, Trust Co. of Vermont acquired a new stake in shares of Paycom Software in the second quarter valued at $40,000. 87.77% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

PAYC has been the subject of a number of research analyst reports. JPMorgan Chase & Co. lifted their price target on Paycom Software from $140.00 to $264.00 and gave the company a "neutral" rating in a report on Tuesday, August 25th. UBS Group raised their price objective on shares of Paycom Software from $205.00 to $285.00 and gave the company a "buy" rating in a research report on Tuesday, September 1st. TD Cowen upped their target price on shares of Paycom Software from $149.00 to $244.00 and gave the stock a "buy" rating in a research report on Thursday, August 6th. Barclays increased their price target on shares of Paycom Software from $154.00 to $210.00 and gave the company an "equal weight" rating in a research note on Thursday, August 6th. Finally, Stifel Nicolaus raised their price target on shares of Paycom Software from $120.00 to $200.00 and gave the company a "hold" rating in a report on Thursday, August 6th. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and nine have issued a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $214.23.

Paycom Software Stock Performance

Paycom Software stock opened at $223.37 on Tuesday. The company has a market cap of $10.07 billion, a PE ratio of 23.74, a PEG ratio of 1.22 and a beta of 0.78. The company has a current ratio of 1.07, a quick ratio of 1.07 and a debt-to-equity ratio of 1.57. Paycom Software, Inc. has a 1 year low of $104.90 and a 1 year high of $244.98. The company's 50-day moving average is $192.71 and its two-hundred day moving average is $151.89.

Paycom Software (NYSE:PAYC - Get Free Report) last issued its quarterly 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 during the quarter, compared to analysts' expectations of $513.12 million. During the same quarter in the previous year, the company earned $2.06 EPS. Paycom Software's revenue was up 9.8% on a year-over-year basis. Equities analysts anticipate that Paycom Software, Inc. will post 10.65 earnings per share for the current year.

Paycom Software Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, September 8th. Stockholders of record on Monday, August 24th were given a $0.375 dividend. This represents a $1.50 annualized dividend and a dividend yield of 0.7%. The ex-dividend date was Monday, August 24th. Paycom Software's dividend payout ratio (DPR) is currently 15.94%.

Insider Activity

In related news, insider Shane Hadlock sold 2,577 shares of Paycom Software stock in a transaction on Thursday, August 27th. The stock was sold at an average price of $237.60, for a total transaction of $612,295.20. Following the completion of the sale, the insider directly owned 70,152 shares of the company's stock, valued at $16,668,115.20. The trade was a 3.54% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 13.20% of the stock is owned by corporate insiders.

About Paycom Software

Paycom Software, Inc is a provider of cloud-based payroll and human capital management (HCM) software for businesses. Its platform is designed to help organizations manage employee data and payroll processes through a unified system, serving small, midsize and larger employers primarily in the United States.

The company's products and services include payroll processing, tax management, time and labor management, talent acquisition, onboarding, employee learning, performance management, compensation planning, benefits administration, expense management and compliance tools.

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