Bank of America Corp DE Reduces Stock Position in Paycom Software, Inc. $PAYC

Key Points

• Bank of America reduced its Paycom Software stake by 16.1% in the first quarter, selling 32,415 shares and retaining 168,593 shares valued at approximately $20.5 million. Institutional investors collectively own 87.77% of Paycom.
• Paycom reported stronger-than-expected quarterly results, with EPS of $2.78 versus estimates of $2.38 and revenue of $531.2 million, up 9.8% year over year.
• The company declared a quarterly dividend of $0.375 per share, equivalent to a $1.50 annualized payout and a 0.7% yield. Analysts maintain a consensus “Hold” rating with an average price target of $204.69.

Bank of America Corp DE cut its holdings in Paycom Software, Inc. (NYSE:PAYC - Free Report) by 16.1% during the first quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 168,593 shares of the software maker's stock after selling 32,415 shares during the period. Bank of America Corp DE owned about 0.35% of Paycom Software worth $20,491,000 at the end of the most recent reporting period.

Several other hedge funds have also recently made changes to their positions in the business. Principal Financial Group Inc. boosted its stake in Paycom Software by 290.5% during the first quarter. Principal Financial Group Inc. now owns 243,762 shares of the software maker's stock worth $29,627,000 after buying an additional 181,346 shares during the period. Northwestern Mutual Wealth Management Co. increased its position in Paycom Software by 1,151.4% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 170,854 shares of the software maker's stock valued at $27,227,000 after acquiring an additional 157,201 shares during the last quarter. Vest Financial LLC raised its stake in shares of Paycom Software by 32.6% in the fourth quarter. Vest Financial LLC now owns 163,012 shares of the software maker's stock valued at $25,978,000 after acquiring an additional 40,108 shares during the period. Ruffer LLP bought a new stake in shares of Paycom Software in the 4th quarter worth about $3,126,000. Finally, M&T Bank Corp boosted its stake in shares of Paycom Software by 2,078.5% during the 4th quarter. M&T Bank Corp now owns 67,316 shares of the software maker's stock worth $10,727,000 after purchasing an additional 64,226 shares during the period. 87.77% of the stock is currently owned by hedge funds and other institutional investors.

Paycom Software Stock Up 0.8%

Paycom Software stock opened at $215.92 on Wednesday. The business has a fifty day moving average of $155.12 and a two-hundred day moving average of $137.96. The company has a quick ratio of 1.07, a current ratio of 1.07 and a debt-to-equity ratio of 1.57. The firm has a market cap of $9.73 billion, a P/E ratio of 22.95, a P/E/G ratio of 1.23 and a beta of 0.75. Paycom Software, Inc. has a twelve month low of $104.90 and a twelve month high of $234.60.

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

Paycom Software Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 8th. Shareholders of record on Monday, August 24th will be given a dividend of $0.375 per share. This represents a $1.50 annualized dividend and a dividend yield of 0.7%. The ex-dividend date of this dividend is Monday, August 24th. Paycom Software's dividend payout ratio is presently 15.94%.

Analyst Ratings Changes

A number of analysts have weighed in on PAYC shares. Mizuho increased their target price on Paycom Software from $120.00 to $130.00 and gave the stock a "neutral" rating in a research note on Thursday, May 7th. UBS Group boosted their target price on shares of Paycom Software from $195.00 to $205.00 and gave the company a "buy" rating in a research note on Thursday, August 6th. Weiss Ratings upgraded shares of Paycom Software from a "hold (c-)" rating to a "hold (c)" rating in a report on Tuesday, August 11th. Guggenheim raised their price target on shares of Paycom Software from $180.00 to $225.00 and gave the stock a "buy" rating in a research note on Thursday, August 6th. Finally, Citigroup lifted their price objective on shares of Paycom Software from $136.00 to $194.00 and gave the company a "neutral" rating in a report on Friday, August 7th. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and nine have assigned a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of "Hold" and an average target price of $204.69.

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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