Cygnus Capital Advisors LLC Takes Position in Paycom Software, Inc. $PAYC

Key Points

• Cygnus Capital Advisors initiated a $1.65 million position in Paycom Software during the second quarter, while institutional investors and hedge funds collectively own 87.77% of the company.
• Paycom exceeded quarterly expectations, reporting $2.78 in adjusted earnings per share versus the $2.38 consensus estimate and $531.2 million in revenue, up 9.8% year over year.
• Analyst sentiment remains mixed, with an average “Hold” rating and a $214.23 price target, while Paycom declared a quarterly dividend of $0.375 per share, equal to a 0.6% annualized yield.

Cygnus Capital Advisors LLC purchased a new position in shares of Paycom Software, Inc. (NYSE:PAYC - Free Report) in the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund purchased 13,110 shares of the software maker's stock, valued at approximately $1,647,000. Paycom Software comprises approximately 1.1% of Cygnus Capital Advisors LLC's holdings, making the stock its 28th biggest position.

A number of other large investors have also recently added to or reduced their stakes in the business. Brown Brothers Harriman & Co. raised its position in Paycom Software by 190.6% during the fourth quarter. Brown Brothers Harriman & Co. now owns 154 shares of the software maker's stock worth $25,000 after acquiring an additional 101 shares during the last quarter. Clearstead Advisors LLC grew its position in shares of Paycom Software by 140.3% in the fourth quarter. Clearstead Advisors LLC now owns 161 shares of the software maker's stock valued at $26,000 after purchasing an additional 94 shares during the last quarter. CYBER HORNET ETFs LLC purchased a new position in shares of Paycom Software during the 2nd quarter worth approximately $29,000. Caitlin John LLC purchased a new position in shares of Paycom Software during the 2nd quarter worth approximately $31,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. acquired a new position in shares of Paycom Software during the 2nd quarter worth approximately $33,000. 87.77% of the stock is owned by institutional investors and hedge funds.

Paycom Software Stock Up 0.1%

PAYC stock opened at $231.81 on Tuesday. The company has a 50 day moving average price of $184.41 and a two-hundred day moving average price of $148.37. The company has a debt-to-equity ratio of 1.57, a quick ratio of 1.07 and a current ratio of 1.07. The stock has a market capitalization of $10.45 billion, a P/E ratio of 24.63, a PEG ratio of 1.29 and a beta of 0.78. Paycom Software, Inc. has a one year low of $104.90 and a one year high of $244.98.

Paycom Software (NYSE:PAYC - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The software maker reported $2.78 earnings per share for the quarter, topping analysts' consensus estimates of $2.38 by $0.40. The company had revenue of $531.20 million for the quarter, compared to analyst estimates of $513.12 million. Paycom Software had a return on equity of 37.06% and a net margin of 22.78%.The business's revenue for the quarter was up 9.8% compared to the same quarter last year. During the same quarter in the prior year, the company posted $2.06 EPS. As a group, sell-side analysts expect that Paycom Software, Inc. will post 10.65 EPS for the current year.

Paycom Software Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 8th. Shareholders of record on Monday, August 24th will be paid a $0.375 dividend. This represents a $1.50 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date of this dividend is Monday, August 24th. Paycom Software's dividend payout ratio (DPR) is presently 15.94%.

Insider Transactions at Paycom Software

In other Paycom Software news, insider Shane Hadlock sold 241 shares of Paycom Software stock in a transaction dated Friday, August 28th. The stock was sold at an average price of $240.07, for a total value of $57,856.87. Following the completion of the sale, the insider owned 69,911 shares in the company, valued at $16,783,533.77. The trade was a 0.34% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Insiders own 13.20% of the company's stock.

Analysts Set New Price Targets

PAYC has been the topic of a number of analyst reports. KeyCorp increased their target price on Paycom Software from $195.00 to $270.00 and gave the company an "overweight" rating in a report on Thursday, August 6th. Zacks Research raised Paycom Software from a "hold" rating to a "strong-buy" rating in a report on Monday, May 18th. JPMorgan Chase & Co. upped their price objective on Paycom Software from $140.00 to $264.00 and gave the company a "neutral" rating in a research report on Tuesday, August 25th. TD Cowen increased their price objective on Paycom Software from $149.00 to $244.00 and gave the company a "buy" rating in a research note on Thursday, August 6th. Finally, BMO Capital Markets lifted their price objective on Paycom Software from $145.00 to $208.00 and gave the stock a "market perform" rating in a research report on Thursday, August 6th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and nine have issued a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $214.23.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.