Goldman Sachs Group Inc. Grows Stake in Paycom Software, Inc. $PAYC

Key Points

• Goldman Sachs increased its stake in Paycom Software by 12.4%, owning approximately 633,626 shares worth $138.4 million as of the latest SEC filing.
• Paycom Software reported an earnings per share (EPS) of $2.06, surpassing analysts' estimates of $1.78, along with a 10.5% year-over-year revenue increase to $483.6 million.
• The company's recent dividend announcement included a quarterly dividend of $0.375, representing an annualized payout of $1.50 with a yield of 0.7%.

Goldman Sachs Group Inc. grew its holdings in shares of Paycom Software, Inc. (NYSE:PAYC - Free Report) by 12.4% in the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 633,626 shares of the software maker's stock after acquiring an additional 69,884 shares during the period. Goldman Sachs Group Inc. owned about 1.10% of Paycom Software worth $138,435,000 as of its most recent SEC filing.

Several other large investors also recently modified their holdings of PAYC. Brighton Jones LLC acquired a new stake in shares of Paycom Software during the fourth quarter valued at about $638,000. Focus Partners Wealth acquired a new stake in shares of Paycom Software during the fourth quarter valued at about $252,000. Lazard Asset Management LLC grew its stake in shares of Paycom Software by 35.0% during the fourth quarter. Lazard Asset Management LLC now owns 15,322 shares of the software maker's stock valued at $3,140,000 after acquiring an additional 3,974 shares in the last quarter. Nuveen Asset Management LLC grew its stake in shares of Paycom Software by 5.4% during the fourth quarter. Nuveen Asset Management LLC now owns 125,919 shares of the software maker's stock valued at $25,810,000 after acquiring an additional 6,415 shares in the last quarter. Finally, Nissay Asset Management Corp Japan ADV grew its stake in shares of Paycom Software by 1.2% during the fourth quarter. Nissay Asset Management Corp Japan ADV now owns 6,357 shares of the software maker's stock valued at $1,314,000 after acquiring an additional 77 shares in the last quarter. 87.77% of the stock is currently owned by institutional investors and hedge funds.

Paycom Software Stock Up 2.6%

Shares of PAYC stock opened at $226.64 on Friday. The business has a 50 day moving average of $227.27 and a two-hundred day moving average of $229.53. Paycom Software, Inc. has a 52 week low of $158.03 and a 52 week high of $267.76. The company has a market cap of $13.12 billion, a P/E ratio of 30.67, a PEG ratio of 2.43 and a beta of 0.81.

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

Paycom Software Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Monday, September 8th. Shareholders of record on Monday, August 25th were 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 was Monday, August 25th. Paycom Software's payout ratio is presently 20.30%.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on the company. JPMorgan Chase & Co. raised their target price on Paycom Software from $215.00 to $235.00 and gave the company a "neutral" rating in a research note on Thursday, August 7th. BMO Capital Markets lifted their price target on Paycom Software from $244.00 to $258.00 and gave the stock a "market perform" rating in a research note on Thursday, August 7th. Cantor Fitzgerald assumed coverage on Paycom Software in a research note on Thursday, August 14th. They issued a "neutral" rating and a $230.00 price target for the company. Barclays lifted their price target on Paycom Software from $240.00 to $250.00 and gave the stock an "equal weight" rating in a research note on Thursday, August 7th. Finally, KeyCorp lifted their price target on Paycom Software from $285.00 to $290.00 and gave the stock an "overweight" rating in a research note on Thursday, August 7th. One investment analyst has rated the stock with a Buy rating and eleven have assigned a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of "Hold" and a consensus price target of $234.36.

Paycom Software Profile

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.

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