Element Capital Management LLC Invests $2.67 Million in Paycom Software, Inc. $PAYC

Key Points

• Element Capital Management LLC has acquired a new stake in Paycom Software, purchasing 12,240 shares valued at approximately $2.67 million during the first quarter.
• Paycom Software recently boosted its quarterly dividend to $0.375, reflecting a 0.7% dividend yield and an annualized payout of $1.50.
• The company's stock has fluctuation risk, with a 52-week range between $153.08 and $267.76, and it is currently trading around $216.04.

Element Capital Management LLC bought a new stake in shares of Paycom Software, Inc. (NYSE:PAYC - Free Report) during the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund bought 12,240 shares of the software maker's stock, valued at approximately $2,674,000.

Several other hedge funds have also bought and sold shares of the stock. Sylebra Capital LLC lifted its stake in Paycom Software by 63.8% in the 4th quarter. Sylebra Capital LLC now owns 3,215,085 shares of the software maker's stock worth $658,996,000 after purchasing an additional 1,252,617 shares in the last quarter. Baillie Gifford & Co. lifted its stake in 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 worth $346,180,000 after purchasing an additional 1,505,990 shares in the last quarter. Invesco Ltd. lifted its stake in Paycom Software by 5.0% in the 1st quarter. Invesco Ltd. now owns 1,233,057 shares of the software maker's stock worth $269,398,000 after purchasing an additional 58,176 shares in the last quarter. Northern Trust Corp lifted its stake in Paycom Software by 10.9% in the 4th quarter. Northern Trust Corp now owns 724,016 shares of the software maker's stock worth $148,402,000 after purchasing an additional 70,897 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. lifted its stake in 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 worth $109,752,000 after purchasing an additional 4,272 shares in the last quarter. Hedge funds and other institutional investors own 87.77% of the company's stock.

Paycom Software Stock Up 1.1%

NYSE:PAYC traded up $2.4430 during mid-day trading on Tuesday, hitting $227.7230. 655,745 shares of the stock traded hands, compared to its average volume of 626,080. The stock has a market capitalization of $13.18 billion, a price-to-earnings ratio of 30.82, a PEG ratio of 2.37 and a beta of 0.81. Paycom Software, Inc. has a 52 week low of $153.08 and a 52 week high of $267.76. The firm's 50 day moving average is $231.17 and its two-hundred day moving average is $227.73.

Paycom Software (NYSE:PAYC - Get Free Report) last issued its quarterly earnings results on Wednesday, August 6th. The software maker reported $2.06 EPS for the quarter, beating the consensus estimate of $1.78 by $0.28. The company had revenue of $483.60 million for the quarter, compared to the consensus estimate of $472.00 million. Paycom Software had a net margin of 21.22% and a return on equity of 25.40%. The firm's revenue was up 10.5% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.62 EPS. As a group, research analysts predict that Paycom Software, Inc. will post 7.15 EPS for the current year.

Paycom Software Dividend Announcement

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

Wall Street Analyst Weigh In

PAYC has been the topic of several research analyst reports. Barclays boosted their price target on shares of Paycom Software from $240.00 to $250.00 and gave the stock an "equal weight" rating in a research note on Thursday, August 7th. Cantor Fitzgerald began coverage on shares of Paycom Software in a research report on Thursday, August 14th. They set a "neutral" rating and a $230.00 target price on the stock. Needham & Company LLC restated a "hold" rating on shares of Paycom Software in a research report on Thursday, May 8th. KeyCorp upped their target price 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. Finally, BMO Capital Markets upped their target price on shares of Paycom Software from $244.00 to $258.00 and gave the company a "market perform" rating in a research report on Thursday, August 7th. One analyst has rated the stock with a Buy rating and eleven have issued a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $234.36.

Insiders Place Their Bets

In other Paycom Software news, insider Bradley Scott Smith sold 1,500 shares of the company's stock in a transaction dated Thursday, June 12th. The shares were sold at an average price of $249.96, for a total value of $374,940.00. Following the transaction, the insider directly owned 27,233 shares in the company, valued at $6,807,160.68. This represents a 5.22% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, COO Randall Peck sold 890 shares of the company's stock in a transaction dated Wednesday, June 4th. The stock was sold at an average price of $263.21, for a total transaction of $234,256.90. Following the completion of the transaction, the chief operating officer owned 49,394 shares in the company, valued at $13,000,994.74. This represents a 1.77% 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 in the last three months. Corporate insiders own 10.90% of the company's stock.

About Paycom Software

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.