Bank of America Corp DE Acquires New Holdings in Paycom Software, Inc. $PAYC

Key Points

• Bank of America initiated a Paycom Software position by purchasing 271,688 shares worth approximately $34.1 million, giving it about 0.60% ownership. Institutional investors collectively hold 87.77% of Paycom’s stock.
• Analyst sentiment is mixed, with a consensus rating of “Hold” and an average price target of $215, despite several firms raising targets as high as $285.
• Paycom exceeded quarterly expectations, reporting $2.78 in EPS and $531.2 million in revenue, while revenue increased 9.8% year over year. The company also pays a quarterly dividend of $0.375, or $1.50 annually, yielding about 0.7%.

Bank of America Corp DE bought a new position in Paycom Software, Inc. (NYSE:PAYC - Free Report) in the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund bought 271,688 shares of the software maker's stock, valued at approximately $34,146,000. Bank of America Corp DE owned approximately 0.60% of Paycom Software as of its most recent SEC filing.

Other hedge funds also recently modified their holdings of the company. Clearstead Advisors LLC lifted its position in shares of Paycom Software by 140.3% in the fourth quarter. Clearstead Advisors LLC now owns 161 shares of the software maker's stock worth $26,000 after buying an additional 94 shares during the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new position in shares of Paycom Software during the 2nd quarter valued at about $33,000. EFG International AG acquired a new position in shares of Paycom Software during the 2nd quarter valued at about $36,000. Trust Co. of Vermont bought a new position in shares of Paycom Software in the 2nd quarter valued at approximately $40,000. Finally, Global Retirement Partners LLC bought a new position in shares of Paycom Software in the 2nd quarter valued at approximately $43,000. Institutional investors and hedge funds own 87.77% of the company's stock.

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on the company. BMO Capital Markets upped their target price on Paycom Software from $145.00 to $208.00 and gave the stock a "market perform" rating in a research report on Thursday, August 6th. TD Cowen lifted their price target on shares of Paycom Software from $149.00 to $244.00 and gave the company a "buy" rating in a research report on Thursday, August 6th. UBS Group boosted their price objective on shares of Paycom Software from $205.00 to $285.00 and gave the stock a "buy" rating in a research note on Tuesday, September 1st. KeyCorp upped their price objective on shares of Paycom Software from $270.00 to $280.00 and gave the stock an "overweight" rating in a report on Monday. Finally, Barclays raised their target price 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. One equities research 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. Based on data from MarketBeat, Paycom Software currently has an average rating of "Hold" and a consensus target price of $215.00.

Insider Activity at Paycom Software

In other news, insider Shane Hadlock sold 241 shares of Paycom Software stock in a transaction that occurred on Friday, August 28th. The stock was sold at an average price of $240.07, for a total transaction of $57,856.87. Following the sale, the insider owned 69,911 shares of the company's stock, valued at approximately $16,783,533.77. This trade represents a 0.34% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 13.20% of the company's stock.

Paycom Software Price Performance

NYSE:PAYC opened at $224.41 on Wednesday. The company has a debt-to-equity ratio of 1.57, a current ratio of 1.07 and a quick ratio of 1.07. Paycom Software, Inc. has a one year low of $104.90 and a one year high of $244.98. The company has a fifty day moving average price of $202.86 and a 200 day moving average price of $155.99. The stock has a market cap of $10.11 billion, a P/E ratio of 23.85, a PEG ratio of 1.26 and a beta of 0.78.

Paycom Software (NYSE:PAYC - Get Free Report) last posted its quarterly earnings data on Wednesday, August 5th. The software maker reported $2.78 earnings per share (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 the consensus estimate of $513.12 million. During the same quarter in the previous year, the firm posted $2.06 EPS. The business's revenue was up 9.8% compared to the same quarter last year. Analysts anticipate that Paycom Software, Inc. will post 10.65 earnings per share for the current year.

Paycom Software Announces Dividend

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

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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