Equity Investment Corp Makes New Investment in Paycom Software, Inc. $PAYC

Key Points

• Equity Investment Corp initiated a position in Paycom Software during the second quarter, purchasing 295,071 shares valued at approximately $37.1 million, or about 0.62% of the company.
• Paycom exceeded quarterly expectations, reporting $2.78 in earnings per share and $531.2 million in revenue, with revenue up 9.8% year over year. The company also declared a quarterly dividend of $0.375 per share.
• Analyst sentiment remains mixed: several firms raised their price targets, but the overall consensus rating is Hold with a consensus target of $204.69.

Equity Investment Corp purchased a new stake in Paycom Software, Inc. (NYSE:PAYC - Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund purchased 295,071 shares of the software maker's stock, valued at approximately $37,085,000. Equity Investment Corp owned approximately 0.62% of Paycom Software as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently made changes to their positions in the company. Meeder Advisory Services Inc. bought a new stake in shares of Paycom Software in the second quarter worth $283,000. MidFirst Bank bought a new stake in Paycom Software during the 2nd quarter worth approximately $633,000. BlackRock Inc. purchased a new position in shares of Paycom Software during the 2nd quarter valued at $632,460,000. Deutsche Bank AG bought a new position in shares of Paycom Software in the second quarter worth about $1,268,000. Finally, Phillips Wealth Planners LLC purchased a new stake in Paycom Software during the 2nd quarter valued at approximately $222,000. Hedge funds and other institutional investors own 87.77% of the company's stock.

Paycom Software Price Performance

PAYC stock opened at $215.92 on Wednesday. Paycom Software, Inc. has a 52-week low of $104.90 and a 52-week high of $234.60. The company has a quick ratio of 1.07, a current ratio of 1.07 and a debt-to-equity ratio of 1.57. The stock has a market cap of $9.73 billion, a price-to-earnings ratio of 22.95, a price-to-earnings-growth ratio of 1.23 and a beta of 0.75. The business has a fifty day moving average of $155.12 and a two-hundred day moving average of $137.96.

Paycom Software (NYSE:PAYC - Get Free Report) last released 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 business had revenue of $531.20 million during the quarter, compared to analysts' expectations of $513.12 million. Paycom Software had a return on equity of 37.06% and a net margin of 22.78%.The company's revenue was up 9.8% compared to the same quarter last year. During the same period in the prior year, the business posted $2.06 EPS. As a group, research analysts anticipate that Paycom Software, Inc. will post 10.48 earnings per share for the current year.

Paycom Software Dividend Announcement

The business 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 annualized dividend and a yield of 0.7%. The ex-dividend date is Monday, August 24th. Paycom Software's dividend payout ratio is currently 15.94%.

Wall Street Analyst Weigh In

Several analysts have issued reports on the stock. BMO Capital Markets raised their price objective on shares of Paycom Software from $145.00 to $208.00 and gave the stock a "market perform" rating in a research note on Thursday, August 6th. UBS Group upped their price objective on shares of Paycom Software from $195.00 to $205.00 and gave the stock a "buy" rating in a research note on Thursday, August 6th. KeyCorp lifted their price target on Paycom Software from $195.00 to $270.00 and gave the company an "overweight" rating in a report on Thursday, August 6th. TD Cowen lifted their price objective on shares of Paycom Software from $149.00 to $244.00 and gave the stock a "buy" rating in a research report on Thursday, August 6th. Finally, BTIG Research boosted their target price on Paycom Software from $160.00 to $230.00 and gave the stock a "buy" rating in a research note on Thursday, August 6th. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and nine have given a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus price target of $204.69.

Paycom Software 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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