Cetera Investment Advisers Reduces Position in Paycom Software, Inc. $PAYC

Key Points

• Cetera Investment Advisers cut its Paycom Software position by 43.8% in the first quarter, selling 10,307 shares and retaining 13,212 shares valued at approximately $1.61 million. Institutional investors overall own 87.77% of the company.
• Analysts raised their price targets following Paycom’s recent performance, with targets ranging from $194 to $230. Despite five Buy ratings and one Strong Buy, the overall consensus remains Hold, with an average target of $204.69.
• Paycom exceeded quarterly expectations, reporting $2.78 in EPS versus a $2.38 estimate and revenue of $531.2 million, up 9.8% year over year. The company also declared a quarterly dividend of $0.375 per share, equal to a 0.7% yield.

Cetera Investment Advisers decreased its holdings in Paycom Software, Inc. (NYSE:PAYC - Free Report) by 43.8% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 13,212 shares of the software maker's stock after selling 10,307 shares during the period. Cetera Investment Advisers' holdings in Paycom Software were worth $1,606,000 at the end of the most recent quarter.

A number of other institutional investors have also bought and sold shares of the business. Brighton Jones LLC purchased a new stake in shares of Paycom Software in the fourth quarter valued at about $638,000. AQR Capital Management LLC increased its holdings 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 worth $4,136,000 after buying an additional 3,674 shares during the last quarter. United Services Automobile Association purchased a new stake in shares of Paycom Software during the 1st quarter valued at approximately $215,000. Empowered Funds LLC raised its position 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 during the period. Finally, Focus Partners Wealth lifted its holdings in Paycom Software by 220.8% in the first quarter. Focus Partners Wealth now owns 3,940 shares of the software maker's stock valued at $861,000 after acquiring an additional 2,712 shares during the last quarter. 87.77% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of research firms have commented on PAYC. Cantor Fitzgerald lifted their target price on Paycom Software from $135.00 to $195.00 and gave the company a "neutral" rating in a research report on Thursday, August 6th. BTIG Research increased their price target on Paycom Software from $160.00 to $230.00 and gave the stock a "buy" rating in a report on Thursday, August 6th. Barclays raised their price objective on Paycom Software from $154.00 to $210.00 and gave the stock an "equal weight" rating in a research report on Thursday, August 6th. UBS Group boosted their price objective on shares of Paycom Software from $195.00 to $205.00 and gave the company a "buy" rating in a report on Thursday, August 6th. Finally, Citigroup upped their target price on shares of Paycom Software from $136.00 to $194.00 and gave the company a "neutral" rating in a research report on Friday, August 7th. One investment 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 stock. According to MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $204.69.

Paycom Software Price Performance

Shares of NYSE:PAYC opened at $212.12 on Wednesday. Paycom Software, Inc. has a 12 month low of $104.90 and a 12 month high of $234.60. The firm has a market capitalization of $9.56 billion, a P/E ratio of 22.54, a P/E/G ratio of 1.31 and a beta of 0.76. The company has a debt-to-equity ratio of 1.57, a current ratio of 1.07 and a quick ratio of 1.07. The company's fifty day moving average price is $147.16 and its 200 day moving average price is $135.51.

Paycom Software (NYSE:PAYC - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The software maker reported $2.78 earnings per share (EPS) for the quarter, beating 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 during the quarter, compared to the consensus estimate of $513.12 million. During the same quarter in the prior year, the firm posted $2.06 earnings per share. Paycom Software's revenue for the quarter was up 9.8% on a year-over-year basis. As a group, sell-side analysts predict that Paycom Software, Inc. will post 9.64 earnings per share for the current fiscal year.

Paycom Software Announces Dividend

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. The ex-dividend date of this dividend is Monday, August 24th. This represents a $1.50 annualized dividend and a yield of 0.7%. Paycom Software's payout ratio is 15.94%.

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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