Berkeley Inc Acquires 13,140 Shares of Paycom Software, Inc. $PAYC

Key Points

• Berkeley Inc increased its stake in Paycom Software (NYSE:PAYC) by 47.5%, buying 13,140 shares to hold 40,794 shares (about 0.07% of the company) worth $6.50M, making PAYC its 18th-largest holding (2.1% of its portfolio).
• Analysts have recently trimmed targets (notable cuts from Citigroup, BMO and Jefferies), leaving a consensus rating of Hold and an average price target of $170.71 amid mixed Buy/Hold/Sell recommendations.
• Paycom slightly beat quarterly EPS estimates ($2.45 vs. $2.44) with revenue up 10.2% year-over-year, and pays an annualized dividend of $1.50 (yield ~1.2%).

Berkeley Inc lifted its holdings in Paycom Software, Inc. (NYSE:PAYC - Free Report) by 47.5% during the fourth quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 40,794 shares of the software maker's stock after buying an additional 13,140 shares during the period. Paycom Software comprises 2.1% of Berkeley Inc's holdings, making the stock its 18th largest holding. Berkeley Inc owned approximately 0.07% of Paycom Software worth $6,501,000 as of its most recent SEC filing.

A number of other large investors have also recently made changes to their positions in the business. True Wealth Design LLC boosted its stake in shares of Paycom Software by 946.7% during the 4th quarter. True Wealth Design LLC now owns 157 shares of the software maker's stock worth $25,000 after purchasing an additional 142 shares during the period. Caitlin John LLC purchased a new stake in shares of Paycom Software in the 3rd quarter worth approximately $29,000. CYBER HORNET ETFs LLC purchased a new stake in shares of Paycom Software in the 2nd quarter worth approximately $29,000. Steigerwald Gordon & Koch Inc. purchased a new stake in shares of Paycom Software in the 3rd quarter worth approximately $31,000. Finally, MUFG Securities EMEA plc purchased a new stake in shares of Paycom Software in the 2nd quarter worth approximately $33,000. 87.77% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently commented on the stock. Citigroup decreased their target price on shares of Paycom Software from $185.00 to $128.00 and set a "neutral" rating for the company in a research report on Friday, February 13th. BMO Capital Markets decreased their target price on shares of Paycom Software from $175.00 to $137.00 and set a "market perform" rating for the company in a research report on Thursday, February 12th. Jefferies Financial Group decreased their target price on shares of Paycom Software from $190.00 to $130.00 and set a "hold" rating for the company in a research report on Thursday, February 12th. Guggenheim decreased their target price on shares of Paycom Software from $210.00 to $180.00 and set a "buy" rating for the company in a research report on Thursday, February 12th. Finally, Barclays increased their target price on shares of Paycom Software from $140.00 to $150.00 and gave the company an "equal weight" rating in a research report on Friday, March 6th. Five investment analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $170.71.

Paycom Software Trading Up 1.7%

Shares of Paycom Software stock opened at $125.80 on Friday. Paycom Software, Inc. has a 12-month low of $104.90 and a 12-month high of $267.76. The firm has a market capitalization of $6.00 billion, a price-to-earnings ratio of 15.55, a PEG ratio of 1.30 and a beta of 0.79. The firm's 50 day simple moving average is $124.26 and its two-hundred day simple moving average is $153.71.

Paycom Software (NYSE:PAYC - Get Free Report) last issued its quarterly earnings results on Wednesday, February 11th. The software maker reported $2.45 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.44 by $0.01. Paycom Software had a net margin of 22.10% and a return on equity of 24.25%. The business had revenue of $544.30 million for the quarter, compared to analyst estimates of $542.79 million. During the same quarter in the prior year, the business posted $2.32 EPS. Paycom Software's revenue for the quarter was up 10.2% compared to the same quarter last year. On average, sell-side analysts predict that Paycom Software, Inc. will post 7.15 EPS for the current fiscal year.

Paycom Software Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Monday, March 23rd. Investors of record on Monday, March 9th were given a $0.375 dividend. The ex-dividend date was Monday, March 9th. This represents a $1.50 dividend on an annualized basis and a yield of 1.2%. Paycom Software's dividend payout ratio is currently 18.54%.

Paycom Software Company Profile

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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