CenterBook Partners LP Acquires 6,586 Shares of Paycom Software, Inc. $PAYC

Key Points

• CenterBook Partners initiated a position in Paycom Software, buying 6,586 shares worth about $1.43 million in the third quarter. Institutional investors collectively own 87.77% of the company’s stock.
• Paycom reported quarterly EPS of $3.37, beating the $2.81 consensus estimate, while revenue rose 10.2% year over year to $543.8 million.
• Analyst sentiment remains mixed: the consensus rating is Hold, with an average price target of $255.36. Paycom also declared a $0.375 quarterly dividend, equivalent to a 0.6% annual yield.

CenterBook Partners LP acquired a new position in Paycom Software, Inc. (NYSE:PAYC - Free Report) in the third quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm acquired 6,586 shares of the software maker's stock, valued at approximately $1,433,000.

Several other hedge funds and other institutional investors have also made changes to their positions in PAYC. BlackRock Inc. acquired a new stake in Paycom Software during the 2nd quarter worth $632,460,000. Reinhart Partners LLC. lifted its holdings in shares of Paycom Software by 20.1% during the 2nd quarter. Reinhart Partners LLC. now owns 1,219,906 shares of the software maker's stock valued at $153,320,000 after purchasing an additional 204,191 shares in the last quarter. Robeco Institutional Asset Management B.V. grew its position in shares of Paycom Software by 108.1% in the 3rd quarter. Robeco Institutional Asset Management B.V. now owns 308,393 shares of the software maker's stock valued at $67,122,000 after purchasing an additional 160,185 shares during the period. Dimensional Fund Advisors LP grew its position in shares of Paycom Software by 10.1% in the 1st quarter. Dimensional Fund Advisors LP now owns 538,376 shares of the software maker's stock valued at $65,435,000 after purchasing an additional 49,460 shares during the period. Finally, Bank of New York Mellon Corp bought a new stake in Paycom Software during the 2nd quarter worth approximately $42,858,000. 87.77% of the stock is currently owned by institutional investors.

Insiders Place Their Bets

In other Paycom Software news, insider Shane Hadlock sold 241 shares of the stock in a transaction dated Friday, August 28th. The stock was sold at an average price of $240.07, for a total transaction of $57,856.87. Following the completion of the sale, the insider directly owned 69,911 shares in the company, valued at approximately $16,783,533.77. This trade represents a 0.34% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders own 13.20% of the company's stock.

Analysts Set New Price Targets

PAYC has been the topic of several research analyst reports. Wall Street Zen upgraded shares of Paycom Software from a "hold" rating to a "buy" rating in a report on Saturday. Cantor Fitzgerald boosted their target price on shares of Paycom Software from $195.00 to $285.00 and gave the stock a "neutral" rating in a report on Friday, October 30th. Stifel Nicolaus upped their price objective on Paycom Software from $120.00 to $200.00 and gave the company a "hold" rating in a research note on Thursday, August 6th. Needham & Company LLC reaffirmed a "hold" rating on shares of Paycom Software in a report on Thursday. Finally, UBS Group increased their target price on Paycom Software from $205.00 to $285.00 and gave the stock a "buy" rating in a research note on Tuesday, September 1st. Four research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $255.36.

Paycom Software Stock Performance

NYSE:PAYC opened at $236.00 on Tuesday. 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 $275.22. The stock's 50-day moving average is $238.23 and its 200-day moving average is $167.17. The stock has a market cap of $10.64 billion, a P/E ratio of 26.32, a price-to-earnings-growth ratio of 1.43 and a beta of 0.75.

Paycom Software (NYSE:PAYC - Get Free Report) last released its quarterly earnings results on Wednesday, November 4th. The software maker reported $3.37 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.81 by $0.56. The firm had revenue of $543.80 million during the quarter, compared to the consensus estimate of $535.26 million. Paycom Software had a net margin of 23.28% and a return on equity of 47.97%. The company's revenue for the quarter was up 10.2% on a year-over-year basis. During the same quarter last year, the firm earned $1.94 earnings per share. Equities research analysts anticipate that Paycom Software, Inc. will post 10.92 earnings per share for the current year.

Paycom Software Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, December 7th. Stockholders of record on Monday, November 23rd will be given a $0.3750 dividend. The ex-dividend date is Monday, November 23rd. This represents a $1.50 dividend on an annualized basis and a dividend yield of 0.6%. Paycom Software's payout ratio is 14.37%.

About Paycom Software

Paycom Software, Inc provides cloud-based human capital management (HCM) software that helps employers manage payroll and related workforce processes through a unified platform. Its services support organizations throughout the employee life cycle, from hiring and onboarding to payroll, benefits administration, time and labor management, and talent management.

The company's platform includes employee self-service tools and Beti, a feature that enables employees to review and complete their own payroll.

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