Compound Planning Inc. Purchases 1,088 Shares of Paycom Software, Inc. $PAYC

Key Points

• Compound Planning Inc. increased its stake in Paycom Software, Inc. by 90.6% in the first quarter, acquiring an additional 1,088 shares and bringing its total holdings to 2,289 shares valued at $500,000.
• Paycom Software recently reported $2.06 earnings per share, exceeding analysts' expectations of $1.78, with a revenue of $483.60 million for the quarter, representing a 10.5% year-over-year increase.
• The company announced a quarterly dividend of $0.375 per share, with an annualized dividend yield of 0.7%, set to be paid on September 8th.

Compound Planning Inc. raised its position in Paycom Software, Inc. (NYSE:PAYC - Free Report) by 90.6% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 2,289 shares of the software maker's stock after purchasing an additional 1,088 shares during the quarter. Compound Planning Inc.'s holdings in Paycom Software were worth $500,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also recently modified their holdings of the company. Sylebra Capital LLC raised its stake in shares of Paycom Software by 63.8% in the 4th quarter. Sylebra Capital LLC now owns 3,215,085 shares of the software maker's stock valued at $658,996,000 after purchasing an additional 1,252,617 shares during the period. Baillie Gifford & Co. raised its stake in shares of Paycom Software by 1,918.4% in the 1st quarter. Baillie Gifford & Co. now owns 1,584,493 shares of the software maker's stock valued at $346,180,000 after purchasing an additional 1,505,990 shares during the period. Invesco Ltd. raised its stake in shares of Paycom Software by 5.0% in the 1st quarter. Invesco Ltd. now owns 1,233,057 shares of the software maker's stock valued at $269,398,000 after purchasing an additional 58,176 shares during the period. Northern Trust Corp raised its stake in shares of Paycom Software by 2.3% in the 1st quarter. Northern Trust Corp now owns 740,385 shares of the software maker's stock valued at $161,759,000 after purchasing an additional 16,369 shares during the period. Finally, Charles Schwab Investment Management Inc. raised its stake in shares of Paycom Software by 0.9% in the 1st quarter. Charles Schwab Investment Management Inc. now owns 502,345 shares of the software maker's stock valued at $109,752,000 after purchasing an additional 4,272 shares during the period. Institutional investors and hedge funds own 87.77% of the company's stock.

Insider Buying and Selling

In related news, CEO Chad R. Richison sold 23,200 shares of Paycom Software stock in a transaction dated Wednesday, June 4th. The stock was sold at an average price of $265.20, for a total transaction of $6,152,640.00. Following the completion of the transaction, the chief executive officer owned 3,224,049 shares in the company, valued at approximately $855,017,794.80. This trade represents a 0.71% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Bradley Scott Smith sold 1,500 shares of Paycom Software stock in a transaction dated Thursday, June 12th. The stock was sold at an average price of $249.96, for a total value of $374,940.00. Following the transaction, the insider owned 27,233 shares of the company's stock, valued at $6,807,160.68. The trade was a 5.22% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 25,590 shares of company stock worth $6,761,837. Company insiders own 10.90% of the company's stock.

Analyst Upgrades and Downgrades

Several analysts have issued reports on PAYC shares. BMO Capital Markets lifted their price target on Paycom Software from $244.00 to $258.00 and gave the company a "market perform" rating in a research note on Thursday, August 7th. Cantor Fitzgerald assumed coverage on Paycom Software in a research report on Thursday, August 14th. They issued a "neutral" rating and a $230.00 target price on the stock. Stifel Nicolaus lifted their target price on Paycom Software from $187.00 to $215.00 and gave the company a "hold" rating in a research report on Thursday, May 8th. Piper Sandler lifted their target price on Paycom Software from $224.00 to $246.00 and gave the company a "neutral" rating in a research report on Thursday, May 8th. Finally, JPMorgan Chase & Co. lifted their target price on Paycom Software from $215.00 to $235.00 and gave the company a "neutral" rating in a research report on Thursday, August 7th. One equities research analyst has rated the stock with a Buy rating and eleven have assigned a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of "Hold" and a consensus price target of $234.36.

Paycom Software Stock Performance

Paycom Software stock traded down $2.08 during midday trading on Thursday, reaching $225.81. 524,324 shares of the company's stock were exchanged, compared to its average volume of 723,928. Paycom Software, Inc. has a 52 week low of $153.08 and a 52 week high of $267.76. The firm has a market cap of $13.07 billion, a price-to-earnings ratio of 30.56, a P/E/G ratio of 2.49 and a beta of 0.81. The stock's 50-day simple moving average is $228.57 and its 200 day simple moving average is $228.71.

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

Paycom Software Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, September 8th. Investors of record on Monday, August 25th will be issued 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 dividend payout ratio (DPR) is presently 20.30%.

Paycom Software 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.