Geode Capital Management LLC Cuts Position in Paycom Software, Inc. $PAYC

Key Points

• Geode Capital Management reduced its Paycom Software stake by 3.9% in the fourth quarter, selling 66,697 shares and ending with 1,660,647 shares valued at about $263.8 million.
• Paycom reported better-than-expected Q1 results, with EPS of $3.15 versus $2.99 expected and revenue of $571.8 million, up 7.8% year over year.
• The company also announced a quarterly dividend of $0.375 per share, equal to $1.50 annually and a 1.0% yield; analysts currently rate the stock a consensus “Hold” with a $159.67 price target.

Geode Capital Management LLC lessened its holdings in Paycom Software, Inc. (NYSE:PAYC - Free Report) by 3.9% in the 4th quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 1,660,647 shares of the software maker's stock after selling 66,697 shares during the period. Geode Capital Management LLC owned about 2.95% of Paycom Software worth $263,834,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors and hedge funds have also recently modified their holdings of PAYC. True Wealth Design LLC increased its stake in shares of Paycom Software by 946.7% in the 4th quarter. True Wealth Design LLC now owns 157 shares of the software maker's stock valued at $25,000 after purchasing an additional 142 shares in the last quarter. Clearstead Advisors LLC increased its stake in shares of Paycom Software by 140.3% in the 4th quarter. Clearstead Advisors LLC now owns 161 shares of the software maker's stock valued at $26,000 after purchasing an additional 94 shares in the last quarter. Caitlin John LLC purchased a new position in shares of Paycom Software in the 3rd quarter valued at about $29,000. CYBER HORNET ETFs LLC purchased a new position in shares of Paycom Software in the 2nd quarter valued at about $29,000. Finally, MUFG Securities EMEA plc purchased a new position in shares of Paycom Software in the 2nd quarter valued at about $33,000. Hedge funds and other institutional investors own 87.77% of the company's stock.

Analyst Upgrades and Downgrades

Several equities analysts recently weighed in on the company. Barclays cut their price target on Paycom Software from $150.00 to $148.00 and set an "equal weight" rating for the company in a research note on Thursday, May 7th. Cantor Fitzgerald boosted their price objective on Paycom Software from $115.00 to $135.00 and gave the stock a "neutral" rating in a research note on Friday, March 6th. BMO Capital Markets boosted their price objective on Paycom Software from $137.00 to $145.00 and gave the stock a "market perform" rating in a research note on Thursday, May 7th. UBS Group cut their price objective on Paycom Software from $210.00 to $183.00 and set a "buy" rating for the company in a research note on Tuesday, April 21st. Finally, Mizuho boosted their price objective on Paycom Software from $120.00 to $130.00 and gave the stock a "neutral" rating in a research note on Thursday, May 7th. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus price target of $159.67.

Paycom Software Price Performance

PAYC stock opened at $148.89 on Tuesday. The company has a debt-to-equity ratio of 0.83, a current ratio of 1.08 and a quick ratio of 1.08. The business has a 50 day simple moving average of $128.55 and a 200-day simple moving average of $140.22. The firm has a market capitalization of $7.09 billion, a PE ratio of 17.21, a price-to-earnings-growth ratio of 1.21 and a beta of 0.77. Paycom Software, Inc. has a 1 year low of $104.90 and a 1 year high of $267.76.

Paycom Software (NYSE:PAYC - Get Free Report) last posted its quarterly earnings results on Wednesday, May 6th. The software maker reported $3.15 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.99 by $0.16. The business had revenue of $571.80 million during the quarter, compared to analyst estimates of $564.37 million. Paycom Software had a return on equity of 28.34% and a net margin of 22.44%.The business's revenue was up 7.8% compared to the same quarter last year. During the same period in the prior year, the business earned $2.80 earnings per share. Equities research analysts anticipate that Paycom Software, Inc. will post 9.19 earnings per share for the current fiscal year.

Paycom Software Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, June 8th. Investors of record on Tuesday, May 26th will be issued a $0.375 dividend. The ex-dividend date is Tuesday, May 26th. This represents a $1.50 dividend on an annualized basis and a yield of 1.0%. Paycom Software's dividend payout ratio is currently 17.34%.

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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