Charles Schwab Investment Management Inc. Increases Holdings in Paycom Software, Inc. (NYSE:PAYC)

Key Points

• Charles Schwab Investment Management Inc. increased its stake in Paycom Software by 0.9%, acquiring an additional 4,272 shares during the first quarter, bringing their total ownership to about 0.87% of the company.
• Paycom Software reported earnings of $2.06 per share for the latest quarter, exceeding analysts' expectations, with a revenue increase of 10.5% year-over-year.
• The company announced a quarterly dividend of $0.375 per share, resulting in an annual yield of 0.7%, to be paid on September 8th.

Charles Schwab Investment Management Inc. grew its stake in shares of Paycom Software, Inc. (NYSE:PAYC - Free Report) by 0.9% during the first quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 502,345 shares of the software maker's stock after acquiring an additional 4,272 shares during the quarter. Charles Schwab Investment Management Inc. owned about 0.87% of Paycom Software worth $109,752,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds also recently made changes to their positions in the business. Sylebra Capital LLC boosted its holdings in shares of Paycom Software by 63.8% in the fourth quarter. Sylebra Capital LLC now owns 3,215,085 shares of the software maker's stock worth $658,996,000 after buying an additional 1,252,617 shares during the last quarter. Baillie Gifford & Co. boosted its holdings in shares of Paycom Software by 1,918.4% in the first quarter. Baillie Gifford & Co. now owns 1,584,493 shares of the software maker's stock worth $346,180,000 after buying an additional 1,505,990 shares during the last quarter. Northern Trust Corp boosted its holdings in shares of Paycom Software by 10.9% in the fourth quarter. Northern Trust Corp now owns 724,016 shares of the software maker's stock worth $148,402,000 after buying an additional 70,897 shares during the last quarter. Federated Hermes Inc. boosted its holdings in shares of Paycom Software by 3.6% in the first quarter. Federated Hermes Inc. now owns 477,475 shares of the software maker's stock worth $104,319,000 after buying an additional 16,495 shares during the last quarter. Finally, Universal Beteiligungs und Servicegesellschaft mbH boosted its holdings in shares of Paycom Software by 30.7% in the first quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 363,949 shares of the software maker's stock worth $79,516,000 after buying an additional 85,526 shares during the last quarter. Hedge funds and other institutional investors own 87.77% of the company's stock.

Wall Street Analysts Forecast Growth

PAYC has been the topic of a number of research reports. Needham & Company LLC reissued a "hold" rating on shares of Paycom Software in a report on Thursday, May 8th. Piper Sandler raised their price objective on shares of Paycom Software from $224.00 to $246.00 and gave the stock a "neutral" rating in a report on Thursday, May 8th. BMO Capital Markets raised their price objective on shares of Paycom Software from $244.00 to $258.00 and gave the stock a "market perform" rating in a report on Thursday, August 7th. Barclays raised their price objective on shares of Paycom Software from $240.00 to $250.00 and gave the stock an "equal weight" rating in a report on Thursday, August 7th. Finally, KeyCorp lifted their price target on shares of Paycom Software from $285.00 to $290.00 and gave the company an "overweight" rating in a report on Thursday, August 7th. Eleven research analysts have rated the stock with a hold rating and one has given a buy 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 $234.80.

Paycom Software Stock Performance

PAYC stock traded up $6.29 during mid-day trading on Wednesday, reaching $221.50. 752,322 shares of the stock traded hands, compared to its average volume of 630,340. Paycom Software, Inc. has a one year low of $153.08 and a one year high of $267.76. The stock has a market capitalization of $12.82 billion, a PE ratio of 29.97, a PEG ratio of 2.43 and a beta of 0.81. The business has a 50-day moving average price of $233.76 and a two-hundred day moving average price of $227.26.

Paycom Software (NYSE:PAYC - Get Free Report) last posted its quarterly earnings data on Wednesday, August 6th. The software maker reported $2.06 earnings per share for the quarter, beating analysts' consensus estimates of $1.78 by $0.28. Paycom Software had a net margin of 21.22% and a return on equity of 25.40%. The business had revenue of $483.60 million for the quarter, compared to analysts' expectations of $472.00 million. During the same quarter in the previous year, the business posted $1.62 earnings per share. The business's revenue was up 10.5% compared to the same quarter last year. On average, equities analysts expect that Paycom Software, Inc. will post 7.15 earnings per share for the current fiscal year.

Paycom Software Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, September 8th. Shareholders of record on Monday, August 25th will be given a dividend of $0.375 per share. The ex-dividend date is Monday, August 25th. This represents a $1.50 dividend on an annualized basis and a yield of 0.7%. Paycom Software's payout ratio is 20.30%.

Insider Buying and Selling at Paycom Software

In other news, CEO Chad R. Richison sold 23,200 shares of the business's stock in a transaction on Wednesday, June 4th. The shares were sold at an average price of $265.20, for a total transaction of $6,152,640.00. Following the completion of the sale, the chief executive officer directly owned 3,224,049 shares of the company's stock, valued at approximately $855,017,794.80. The trade was a 0.71% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Bradley Scott Smith sold 1,500 shares of the company's stock in a transaction dated Thursday, June 12th. The stock was sold at an average price of $249.96, for a total transaction of $374,940.00. Following the completion of the transaction, the insider owned 27,233 shares in the company, valued at approximately $6,807,160.68. The trade was a 5.22% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 25,590 shares of company stock worth $6,761,837 over the last quarter. Insiders own 10.90% of the company's stock.

Paycom Software Company Profile

Paycom Software, Inc provides cloud-based human capital management (HCM) solution delivered as software-as-a-service for small to mid-sized companies in the United States. It offers functionality and data analytics that businesses need to manage the employment life cycle from recruitment to retirement.