California State Teachers Retirement System Boosts Position in Paycom Software, Inc. $PAYC

Key Points

• California State Teachers Retirement System dramatically increased its Paycom Software position by 9,363.4% in the second quarter, ending with 5.68 million shares worth approximately $714.1 million, or 12.61% of the company.
• Paycom exceeded quarterly expectations, reporting $2.78 in earnings per share versus the $2.38 consensus and $531.2 million in revenue, up 9.8% year over year.
• Analyst sentiment remains mixed: Paycom has an average “Hold” rating and a consensus price target of $214.23, below its reported opening price of $218.97.

California State Teachers Retirement System lifted its holdings in Paycom Software, Inc. (NYSE:PAYC - Free Report) by 9,363.4% during the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 5,681,993 shares of the software maker's stock after purchasing an additional 5,621,951 shares during the period. California State Teachers Retirement System owned about 12.61% of Paycom Software worth $714,113,000 at the end of the most recent reporting period.

Several other institutional investors have also recently made changes to their positions in PAYC. Brighton Jones LLC purchased a new position in Paycom Software during the fourth quarter valued at approximately $638,000. AQR Capital Management LLC raised its position in shares of Paycom Software by 23.7% during the 1st quarter. AQR Capital Management LLC now owns 19,155 shares of the software maker's stock valued at $4,136,000 after purchasing an additional 3,674 shares during the period. United Services Automobile Association bought a new stake in shares of Paycom Software during the 1st quarter valued at $215,000. Empowered Funds LLC lifted its stake in shares of Paycom Software by 22.8% during the 1st quarter. Empowered Funds LLC now owns 7,958 shares of the software maker's stock valued at $1,739,000 after buying an additional 1,480 shares in the last quarter. Finally, Focus Partners Wealth lifted its stake in shares of Paycom Software by 220.8% during the 1st quarter. Focus Partners Wealth now owns 3,940 shares of the software maker's stock valued at $861,000 after buying an additional 2,712 shares in the last quarter. Institutional investors own 87.77% of the company's stock.

Insiders Place Their Bets

In other Paycom Software news, insider Shane Hadlock sold 241 shares of Paycom Software stock in a transaction dated Friday, August 28th. The stock was sold at an average price of $240.07, for a total value of $57,856.87. Following the transaction, the insider owned 69,911 shares in the company, valued at $16,783,533.77. The trade was a 0.34% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 13.20% of the stock is currently owned by insiders.

Wall Street Analyst Weigh In

PAYC has been the subject of several research reports. Barclays increased their price objective on shares of Paycom Software from $154.00 to $210.00 and gave the company an "equal weight" rating in a report on Thursday, August 6th. Guggenheim boosted their target price on Paycom Software from $180.00 to $225.00 and gave the stock a "buy" rating in a research report on Thursday, August 6th. Weiss Ratings raised Paycom Software from a "hold (c-)" rating to a "hold (c)" rating in a research note on Tuesday, August 11th. Citigroup raised their price target on Paycom Software from $136.00 to $194.00 and gave the company a "neutral" rating in a report on Friday, August 7th. Finally, JPMorgan Chase & Co. lifted their price objective on Paycom Software from $140.00 to $264.00 and gave the stock a "neutral" rating in a research note on Tuesday, August 25th. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and nine have given a Hold rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $214.23.

Paycom Software Stock Up 0.0%

Shares of NYSE PAYC opened at $218.97 on Monday. Paycom Software, Inc. has a 1 year low of $104.90 and a 1 year high of $244.98. The firm has a 50-day simple moving average of $191.05 and a two-hundred day simple moving average of $151.15. The company has a market cap of $9.87 billion, a P/E ratio of 23.27, a PEG ratio of 1.22 and a beta of 0.78. 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 (NYSE:PAYC - Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The software maker reported $2.78 EPS for the quarter, topping analysts' consensus estimates of $2.38 by $0.40. The firm had revenue of $531.20 million for the quarter, compared to analysts' expectations of $513.12 million. Paycom Software had a net margin of 22.78% and a return on equity of 37.06%. The business's revenue for the quarter was up 9.8% on a year-over-year basis. During the same period in the prior year, the business posted $2.06 earnings per share. Research analysts anticipate that Paycom Software, Inc. will post 10.65 earnings per share for the current year.

Paycom Software Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, September 8th. Investors of record on Monday, August 24th were paid a dividend of $0.375 per share. This represents a $1.50 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date was Monday, August 24th. Paycom Software's dividend payout ratio is 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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