Confluence Investment Management LLC Decreases Stake in Paycom Software, Inc. $PAYC

Key Points

• Confluence Investment Management LLC reduced its stake in Paycom Software, owning approximately 0.59% of the company, valued at about $79.17 million after selling 8,856 shares.
• Paycom Software reported a quarterly earnings per share (EPS) of $2.06, surpassing analysts' estimates of $1.78, with a revenue of $483.60 million.
• The company declared a quarterly dividend of $0.375 per share, which represents an annualized dividend of $1.50, yielding 0.7% with a payout ratio of 20.30%.

Confluence Investment Management LLC reduced its holdings in shares of Paycom Software, Inc. (NYSE:PAYC - Free Report) by 2.5% in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 342,139 shares of the software maker's stock after selling 8,856 shares during the quarter. Confluence Investment Management LLC owned 0.59% of Paycom Software worth $79,171,000 at the end of the most recent reporting period.

A number of other hedge funds have also recently made changes to their positions in PAYC. Brighton Jones LLC acquired a new position in shares of Paycom Software during the fourth quarter valued at about $638,000. Focus Partners Wealth bought a new stake in Paycom Software in the fourth quarter worth about $252,000. Lazard Asset Management LLC raised its position in Paycom Software by 35.0% in the fourth quarter. Lazard Asset Management LLC now owns 15,322 shares of the software maker's stock worth $3,140,000 after acquiring an additional 3,974 shares during the period. Nuveen Asset Management LLC raised its position in Paycom Software by 5.4% in the fourth quarter. Nuveen Asset Management LLC now owns 125,919 shares of the software maker's stock worth $25,810,000 after acquiring an additional 6,415 shares during the period. Finally, Nissay Asset Management Corp Japan ADV raised its position in Paycom Software by 1.2% in the fourth quarter. Nissay Asset Management Corp Japan ADV now owns 6,357 shares of the software maker's stock worth $1,314,000 after acquiring an additional 77 shares during the period. 87.77% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several analysts have commented on PAYC shares. JPMorgan Chase & Co. lifted their price objective on shares of Paycom Software from $215.00 to $235.00 and gave the stock a "neutral" rating in a research report on Thursday, August 7th. Cantor Fitzgerald raised shares of Paycom Software to a "hold" rating in a research report on Thursday, September 11th. KeyCorp boosted their price target on shares of Paycom Software from $285.00 to $290.00 and gave the company an "overweight" rating in a research report on Thursday, August 7th. UBS Group lowered their price target on shares of Paycom Software from $310.00 to $285.00 and set a "buy" rating on the stock in a research report on Wednesday. Finally, Barclays boosted their price target on shares of Paycom Software from $240.00 to $250.00 and gave the company an "equal weight" rating in a research report on Thursday, August 7th. Two research analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $238.58.

Paycom Software Trading Up 1.3%

NYSE PAYC traded up $2.73 during trading on Thursday, hitting $217.46. The company had a trading volume of 300,522 shares, compared to its average volume of 622,446. Paycom Software, Inc. has a one year low of $158.03 and a one year high of $267.76. The company has a market cap of $12.59 billion, a price-to-earnings ratio of 29.45, a price-to-earnings-growth ratio of 2.35 and a beta of 0.81. The company's fifty day moving average is $226.01 and its 200-day moving average is $229.50.

Paycom Software (NYSE:PAYC - Get Free Report) last issued its quarterly earnings results on Wednesday, August 6th. The software maker reported $2.06 earnings per share for the quarter, beating the consensus estimate 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 the consensus estimate of $472.00 million. During the same quarter in the previous year, the firm earned $1.62 earnings per share. The company's revenue for the quarter was up 10.5% on a year-over-year basis. As a group, equities analysts anticipate that Paycom Software, Inc. will post 7.15 EPS for the current year.

Paycom Software Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, September 8th. Investors of record on Monday, August 25th were paid a dividend of $0.375 per share. The ex-dividend date of this dividend was 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 is presently 20.30%.

Insiders Place Their Bets

In other news, insider Bradley Scott Smith sold 1,500 shares of the company's stock in a transaction dated Friday, September 12th. The shares were sold at an average price of $223.27, for a total value of $334,905.00. Following the transaction, the insider directly owned 24,533 shares in the company, valued at approximately $5,477,482.91. This represents a 5.76% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. 10.90% of the stock is owned by company insiders.

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.