First Trust Advisors LP Sells 783,648 Shares of Paycom Software, Inc. $PAYC

Key Points

• First Trust Advisors LP cut its Paycom Software stake by 47.1% in the first quarter, selling 783,648 shares and leaving it with 881,881 shares worth about $107.2 million.
• 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.
• The company paid a quarterly dividend of $0.375 per share and has a 1.0% annualized yield; analysts currently rate the stock Moderate Buy with a consensus target price of $159.75.

First Trust Advisors LP lowered its holdings in Paycom Software, Inc. (NYSE:PAYC - Free Report) by 47.1% during the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 881,881 shares of the software maker's stock after selling 783,648 shares during the quarter. First Trust Advisors LP owned 1.85% of Paycom Software worth $107,184,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in PAYC. Mackenzie Financial Corp grew its holdings in shares of Paycom Software by 4.0% in the 3rd quarter. Mackenzie Financial Corp now owns 1,624 shares of the software maker's stock worth $338,000 after purchasing an additional 63 shares during the last quarter. Boyd Watterson Asset Management LLC OH grew its stake in Paycom Software by 0.8% during the fourth quarter. Boyd Watterson Asset Management LLC OH now owns 10,662 shares of the software maker's stock worth $1,699,000 after buying an additional 86 shares during the last quarter. Lido Advisors LLC increased its holdings in shares of Paycom Software by 1.4% during the fourth quarter. Lido Advisors LLC now owns 6,286 shares of the software maker's stock worth $1,081,000 after buying an additional 87 shares in the last quarter. Janus Henderson Group PLC raised its position in Paycom Software by 2.2% in the 4th quarter. Janus Henderson Group PLC now owns 4,090 shares of the software maker's stock valued at $652,000 after purchasing an additional 88 shares during the last quarter. Finally, Evoke Wealth LLC boosted its stake in Paycom Software by 2.8% in the fourth quarter. Evoke Wealth LLC now owns 3,335 shares of the software maker's stock worth $531,000 after purchasing an additional 90 shares in the last quarter. Institutional investors own 87.77% of the company's stock.

Paycom Software Price Performance

NYSE PAYC opened at $145.71 on Friday. The firm's 50 day moving average is $136.71 and its 200-day moving average is $133.26. The company has a quick ratio of 1.08, a current ratio of 1.08 and a debt-to-equity ratio of 0.83. The company has a market capitalization of $6.94 billion, a PE ratio of 16.84, a price-to-earnings-growth ratio of 1.18 and a beta of 0.80. Paycom Software, Inc. has a 12-month low of $104.90 and a 12-month high of $248.95.

Paycom Software (NYSE:PAYC - Get Free Report) last issued its quarterly earnings results on Wednesday, May 6th. The software maker reported $3.15 EPS for the quarter, topping the consensus estimate of $2.99 by $0.16. Paycom Software had a net margin of 22.44% and a return on equity of 28.34%. The firm had revenue of $571.80 million for the quarter, compared to analysts' expectations of $564.37 million. During the same period in the previous year, the firm posted $2.80 EPS. The company's revenue for the quarter was up 7.8% on a year-over-year basis. Equities research analysts anticipate that Paycom Software, Inc. will post 9.37 earnings per share for the current fiscal year.

Paycom Software Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, June 8th. Stockholders of record on Tuesday, May 26th were issued a dividend of $0.375 per share. The ex-dividend date of this dividend was Tuesday, May 26th. This represents a $1.50 dividend on an annualized basis and a dividend yield of 1.0%. Paycom Software's dividend payout ratio (DPR) is currently 17.34%.

Analyst Ratings Changes

A number of research firms have recently weighed in on PAYC. Citigroup boosted their target price on Paycom Software from $120.00 to $136.00 and gave the stock a "neutral" rating in a research report on Thursday, May 7th. Weiss Ratings upgraded Paycom Software from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Thursday, July 16th. UBS Group reduced their target price on shares of Paycom Software from $210.00 to $183.00 and set a "buy" rating on the stock in a research note on Tuesday, April 21st. TD Cowen cut their price objective on shares of Paycom Software from $154.00 to $149.00 and set a "buy" rating on the stock in a report on Friday, June 26th. Finally, Barclays lifted their target price on shares of Paycom Software from $148.00 to $154.00 and gave the stock an "equal weight" rating in a report on Tuesday. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and eight have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $159.75.

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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