Contour Asset Management LLC Makes New Investment in Paycom Software, Inc. $PAYC

Key Points

• Contour Asset Management opened a new position in Paycom Software, buying 378,595 shares valued at about $60.3 million. The stake represents roughly 1.4% of its portfolio and 0.67% of Paycom’s shares outstanding.
• Several other hedge funds also boosted or initiated positions, and institutional investors now own 87.77% of Paycom Software. This suggests continued strong interest from large investors despite recent market moves.
• Paycom reported better-than-expected quarterly results, with EPS of $3.15 versus estimates of $2.99 and revenue of $571.8 million, up 7.8% year over year. Even so, the stock was down 3.9% and analysts currently have a consensus Hold rating with a target price of $159.67.

Contour Asset Management LLC acquired a new position in Paycom Software, Inc. (NYSE:PAYC - Free Report) in the fourth quarter, according to the company in its most recent filing with the SEC. The firm acquired 378,595 shares of the software maker's stock, valued at approximately $60,333,000. Paycom Software accounts for approximately 1.4% of Contour Asset Management LLC's portfolio, making the stock its 22nd biggest position. Contour Asset Management LLC owned 0.67% of Paycom Software as of its most recent SEC filing.

A number of other hedge funds also recently modified their holdings of the company. Reinhart Partners LLC. lifted its position in shares of Paycom Software by 887.4% during the 4th quarter. Reinhart Partners LLC. now owns 598,323 shares of the software maker's stock worth $95,351,000 after buying an additional 537,726 shares during the period. Two Sigma Investments LP lifted its position in shares of Paycom Software by 228.7% during the 3rd quarter. Two Sigma Investments LP now owns 532,124 shares of the software maker's stock worth $110,756,000 after buying an additional 370,219 shares during the period. Woodline Partners LP bought a new position in shares of Paycom Software during the 3rd quarter worth approximately $58,452,000. First Trust Advisors LP lifted its position in shares of Paycom Software by 19.9% during the 4th quarter. First Trust Advisors LP now owns 1,665,529 shares of the software maker's stock worth $265,419,000 after buying an additional 275,954 shares during the period. Finally, Robeco Institutional Asset Management B.V. lifted its position in shares of Paycom Software by 230.9% during the 4th quarter. Robeco Institutional Asset Management B.V. now owns 341,286 shares of the software maker's stock worth $54,387,000 after buying an additional 238,155 shares during the period. Institutional investors own 87.77% of the company's stock.

Analysts Set New Price Targets

PAYC has been the subject of several analyst reports. UBS Group cut their target price on Paycom Software from $210.00 to $183.00 and set a "buy" rating for the company in a research report on Tuesday, April 21st. Barclays cut their target price on Paycom Software from $150.00 to $148.00 and set an "equal weight" rating for the company in a research report on Thursday, May 7th. BTIG Research raised their target price on Paycom Software from $140.00 to $160.00 and gave the stock a "buy" rating in a research report on Thursday, May 7th. Weiss Ratings restated a "sell (d+)" rating on shares of Paycom Software in a research report on Friday, May 1st. Finally, TD Cowen raised their target price on Paycom Software from $148.00 to $154.00 and gave the stock a "buy" rating in a research report on Thursday, May 7th. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $159.67.

Paycom Software Trading Down 3.9%

PAYC stock opened at $124.07 on Thursday. The business has a fifty day moving average price of $131.71 and a 200 day moving average price of $137.90. Paycom Software, Inc. has a fifty-two week low of $104.90 and a fifty-two week high of $248.95. The stock has a market capitalization of $5.91 billion, a price-to-earnings ratio of 14.34, a P/E/G ratio of 1.12 and a beta of 0.79. The company has a debt-to-equity ratio of 0.83, a current ratio of 1.08 and a quick ratio of 1.08.

Paycom Software (NYSE:PAYC - Get Free Report) last released its quarterly earnings results on Wednesday, May 6th. The software maker reported $3.15 earnings per share for the quarter, beating analysts' consensus estimates of $2.99 by $0.16. Paycom Software had a return on equity of 28.34% and a net margin of 22.44%.The firm had revenue of $571.80 million during the quarter, compared to analysts' expectations of $564.37 million. During the same period last year, the firm posted $2.80 EPS. The business's revenue was up 7.8% on a year-over-year basis. Analysts expect that Paycom Software, Inc. will post 9.16 EPS for the current fiscal year.

Paycom Software Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Monday, June 8th. Investors of record on Tuesday, May 26th were issued a dividend of $0.375 per share. This represents a $1.50 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date of this dividend was Tuesday, May 26th. Paycom Software's dividend payout ratio (DPR) is currently 17.34%.

Paycom Software Company Profile

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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