Paycom Software, Inc. (NYSE:PAYC) Shares Acquired by Federated Hermes Inc.

Key Points

• Federated Hermes Inc. increased its stake in Paycom Software by 3.6% during the first quarter, owning 477,475 shares valued at approximately $104 million.
• Paycom Software reported $2.80 earnings per share for the last quarter, exceeding analysts' expectations by $0.18, with revenue of $530.50 million.
• The company recently declared a $0.375 quarterly dividend, representing an annualized dividend yield of 0.63% and a payout ratio of 21.40%.

Federated Hermes Inc. boosted its position in shares of Paycom Software, Inc. (NYSE:PAYC - Free Report) by 3.6% in the first quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 477,475 shares of the software maker's stock after acquiring an additional 16,495 shares during the quarter. Federated Hermes Inc. owned 0.83% of Paycom Software worth $104,319,000 at the end of the most recent reporting period.

A number of other institutional investors also recently bought and sold shares of the company. Allworth Financial LP lifted its position in shares of Paycom Software by 12.9% during the 1st quarter. Allworth Financial LP now owns 464 shares of the software maker's stock valued at $105,000 after buying an additional 53 shares in the last quarter. Salvus Wealth Management LLC lifted its holdings in Paycom Software by 4.9% during the first quarter. Salvus Wealth Management LLC now owns 1,238 shares of the software maker's stock valued at $270,000 after purchasing an additional 58 shares in the last quarter. Burns Matteson Capital Management LLC boosted its position in shares of Paycom Software by 2.5% in the first quarter. Burns Matteson Capital Management LLC now owns 2,348 shares of the software maker's stock worth $513,000 after purchasing an additional 58 shares during the period. Benjamin Edwards Inc. increased its stake in shares of Paycom Software by 1.1% in the fourth quarter. Benjamin Edwards Inc. now owns 5,502 shares of the software maker's stock worth $1,128,000 after purchasing an additional 60 shares in the last quarter. Finally, Private Trust Co. NA raised its position in shares of Paycom Software by 11.0% during the 1st quarter. Private Trust Co. NA now owns 638 shares of the software maker's stock valued at $139,000 after purchasing an additional 63 shares during the period. Institutional investors own 87.77% of the company's stock.

Paycom Software Price Performance

Shares of NYSE:PAYC traded down $5.01 during trading hours on Friday, hitting $226.53. The company's stock had a trading volume of 580,497 shares, compared to its average volume of 463,397. The company has a market capitalization of $13.10 billion, a price-to-earnings ratio of 32.32, a P/E/G ratio of 2.55 and a beta of 0.81. The firm's fifty day moving average price is $240.12 and its 200 day moving average price is $226.16. Paycom Software, Inc. has a 52 week low of $152.46 and a 52 week high of $267.76.

Paycom Software (NYSE:PAYC - Get Free Report) last announced its earnings results on Wednesday, May 7th. The software maker reported $2.80 earnings per share for the quarter, beating the consensus estimate of $2.62 by $0.18. Paycom Software had a net margin of 20.60% and a return on equity of 25.53%. The company had revenue of $530.50 million during the quarter, compared to the consensus estimate of $522.92 million. During the same period last year, the firm earned $2.59 earnings per share. Paycom Software's revenue was up 6.1% compared to the same quarter last year. On average, equities research analysts predict that Paycom Software, Inc. will post 7.15 earnings per share for the current fiscal year.

Paycom Software Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, June 9th. Stockholders of record on Tuesday, May 27th were issued a dividend of $0.375 per share. The ex-dividend date was Tuesday, May 27th. This represents a $1.50 annualized dividend and a dividend yield of 0.7%. Paycom Software's dividend payout ratio is 21.40%.

Insider Activity

In related news, CEO Chad R. Richison sold 120,000 shares of the firm's stock in a transaction on Thursday, May 8th. The stock was sold at an average price of $243.52, for a total value of $29,222,400.00. Following the completion of the transaction, the chief executive officer owned 3,307,249 shares in the company, valued at $805,381,276.48. This trade represents a 3.50% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Bradley Scott Smith sold 1,500 shares of the stock in a transaction on Thursday, June 12th. The stock was sold at an average price of $249.96, for a total transaction of $374,940.00. Following the completion of the sale, the insider owned 27,233 shares in the company, valued at $6,807,160.68. The trade was a 5.22% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 172,016 shares of company stock worth $42,736,608 over the last 90 days. 10.90% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

Several research firms have recently issued reports on PAYC. KeyCorp lifted their price objective on shares of Paycom Software from $245.00 to $270.00 and gave the company an "overweight" rating in a research report on Thursday, May 8th. Piper Sandler lifted their price target on Paycom Software from $224.00 to $246.00 and gave the stock a "neutral" rating in a research report on Thursday, May 8th. Barclays lifted their target price on Paycom Software from $221.00 to $240.00 and gave the stock an "equal weight" rating in a report on Thursday, May 8th. Needham & Company LLC reiterated a "hold" rating on shares of Paycom Software in a research report on Thursday, May 8th. Finally, Stifel Nicolaus upped their price target on shares of Paycom Software from $187.00 to $215.00 and gave the company a "hold" rating in a report on Thursday, May 8th. Eleven analysts have rated the stock with a hold rating and one has given a buy rating to the company. According to MarketBeat.com, the company has a consensus rating of "Hold" and a consensus price target of $226.90.

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.